What is NIMZs ?

  • National Investment and Manufacturing Zones National Investment and Manufacturing Zones (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., to provide a productive environment to persons transitioning from the primary sector to the secondary and tertiary sectors.
  • These NIMZs would be managed by SPVs (Special Purpose Vehicles) which would ensure master planning of the Zone; pre-clearances for setting up the industrial units to be located within the zone and undertake such other functions as specified in the various sections of this policy.
  • To enable the NIMZ to function as a self governing and autonomous body, it will be declared by the State Government as an Industrial Township under Article 243 Q(c) of the Constitution.
  • In sum, the NIMZs would be large areas of developed land, with the requisite eco-system for promoting world class manufacturing activity.
  • DIPP has in the past four years given in-principle approval to 12 NIMZs in Nagpur in Maharashtra; Tumkur, Kolar, Gulbarga and Bidar in Karnataka; Medak in Telangana; Chittor in Rajasthan and Kalinganagar in Odisha, among others.
  • However, none of the states other than Andhra Pradesh has been able to make any headway yet.
  • The manufacturing policy puts the onus on the central government to provide external physical infrastructure linkages to the NIMZs including rail, road, ports, airports and telecom, in a time-bound manner and also provide viability gap funding wherever required.

Salient Features:
  • National Investment and Manufacturing Zones (NIMZ) equipped with world-class infrastructure that would be autonomous and self-regulated developed in partnership with the private sector.
  • Each National Investment and Manufacturing Zonesto have 5,000 hectares.
  • Land will be selected by State Governments.
  • Preference would be given to uncultivable land.
  • Both state and central Government would fund trunk infrastructure.
  • The policy embodies an easy exit policy and single window clearance in zones.
  • The NIMZ would be managed by special entity.
  • The policy has envisaged fiscal sops to boost manufacturing.
  • Small & medium enterprises to be reimbursed for technology purchase.
  • Flexible labor laws and simplified & expeditious exit mechanism for sick units.
  • Relaxation in environmental regulations.
  • Financial and tax incentives to small and medium enterprises.
  • Incentives to states for infrastructure development Incentives for Green Manufacturing.
  • Rationalization of business regulations to reduce burden of procedural and regulatory compliance on businesses.
  • Increased focus on employment intensive industries, capital goods industry, industries with strategic significance and those in which India enjoys a competitive edge and the SME sector.