The proposed, new manufacturing policy’s major labour ministry hurdle has been cleared. The proposed manufacturing policy has been opposed by the ministry of labour and ministry of environment on the issues concerning respective departments.
After the detailed discussion between Labour Ministry and Department of Industrial Policy and Promotion (DIPP) the issues related to labour are resolved. In the agreed plan, the existing labour norms would be applicable in the proposed manufacturing zones and there would be arrangements for fast relief to workers in case a unit is closed.
Labour and Employment Secretary P C Chaturvedi said, “The issue was that they thought some amendments to the law were required for their proposal. We clarified that if somebody wants to do something more than what is required in the law, no amendments were required. DIPP was proposing more compensation and more retrenchment allowance and administrative arrangements in case the factory faces problem and workers needed to be redeployed.”
As per Chaturvedi, if DIPP want to have some administrative arrangements in the manufacturing zone, which will provide faster reliefs to the workers, Labour ministry will not have any objection. He said “Why should we have any objection? Our concern is that whatever is available as benefit to the workers under labour laws should be available to them...that’s all. Labour laws were in no way any problem. They are already existing and there is no issue on that. Labour laws will be applicable.”
On the issue of environment, commerce and industry minister had met Environment and Forest minister Jayanthi Natarajan. Both the ministry has agreed to fast track resolution of the environment related issues, to forward the recommended policy to the Union Cabinet as soon as possible.
The government is also expected to extend capital gain tax exemption on equity investment in National Manufacturing Industrial Zone (NMIZs). Presently, DIPP is working over the norms for checking misuses of the benefits. As per the draft paper, NMIZs would enjoy all the tax benefits available to the Special Economic Zones and Export oriented Units. Chaturvedi stressed that proposed policy would improve the growth of the manufacturing sector and create large employment.
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