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  • 28 November, 2021

  • 5 Min Read

National Investment and Manufacturing Zones (NIMZ)

About National Investment and Manufacturing Zones (NIMZ)

  • The Government of India (GoI) has announced a National Manufacturing Policy, 2011, with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. NIMZs are one of the important instruments to achieve it.
  • As per the Policy, “NIMZs will be developed as integrated industrial townships with state-of-the art infrastructure and land use on the basis of zoning; clean and energy efficient technology; necessary social infrastructure; skill development facilities, etc.”
  • At least 30% of the total land area proposed for the NIMZ will be utilized for the location of manufacturing units.
  • The land for these zones will preferably be waste infertile land not suitable for cultivation, not in the vicinity of any ecologically fragile area and with reasonable access to basic resources.
  • On receipt of final approval, the NIMZ will be declared by the State Government as an industrial township under Article 243Q(1)(c) of the Constitution. Central Govt will notify the NIMZ.
  • NIMZ can be proposed with a land area of at least 5000 hectares.
  • The central government provides external physical infrastructure linkages to the NIMZs including rail, road, ports, airports, and telecom, in a time-bound manner and also provides viability gap funding wherever required.
  • The State Government will constitute a Special Purpose Vehicle (SPV) to discharge the functions specified in the policy. The SPV will prepare a strategy for the development of the zone and an action-plan for self-regulation to serve the purpose of the policy.
  • The Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal agency for NIMZ.

NIMZs in India

  • So far, the Government of India has granted ‘in-principle’ approval to the sixteen NIMZs (outside the DMIC region) and eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project. More about National Investment and Manufacturing Zones (NIMZ).
  • Recently, the Government of India has granted the final approval to three National Investment and Manufacturing Zones (NIMZ), namely Prakasam (Andhra Pradesh), Sangareddy (Telangana) and Kalinganagar (Odisha).

Difference between NIMZ and SEZ in India

Parameters NIMZ SEZ
Objective? Idea of industrial growth that involves collaboration with Local Govt Advancement of Exports
Which act? National Manufacturing Policy, 2011 SEZ Act, 2005
Area? 5000 ha minimum 10 to 5000 ha
Income Tax Exemption To small and Medium enterprises 100% for first 5 years and then 50% for next 5
EIA Given by State Govt By Project Developer

Significance of NIMZ:

  • It will attract ECBs for developing the internal infrastructure.
  • Soft loans for multilateral institutions will be given for infrastructural development.
  • Industrial Corridors are the focus of NIMZ. They are important for inter dependence of various sectors of the economy and its socio-economic development.

Source: AspireIAS Notes

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