The Union Government approved the National Manufacturing Policy (NMP) during October 2011 that aims for high growth in employment, investment and output. The policy is expected to address issues related to skill development, technology upgradation, global competitiveness, clean and green manufacturing, etc. National Investment & Manufacturing Zones (NIMZ) can now be speedily established all over the country as new industrial townships that will offer integrated manufacturing services and world-class infrastructure. These NIMZs will be set up through SPVs, including the Union Government and various state governments and other stakeholders. The first phase of the NIMZ will be set up along the Delhi-Mumbai Industrial Corridor (DMIC). Initially, seven such zones will be created. The first three will come up in Maharashtra, Rajasthan and Gujarat.

"If a particular state government aggregates the land (for creating National Investment and Manufacturing Zone) then the fiscal incentives meant for the zones would be given to them. We are only giving them an enabling framework. This is just a framework; a state government might offer more relaxation to industry if it wants to boost manufacturing," R P Singh, Secretary, DIPP.

During the month, the government, in its bid to bring in more clarity in the Telecom Sector, unveiled draft National Telecom Policy 2011. As per the draft - users are to be allowed to receive incoming calls free and make outgoing calls at local tariffs without roaming charges anywhere in India; introduces full portability by making it possible to retain one's number even if the shift to another operator is not within the same city or circle; and permits unrestricted use of the internet for making local and STD calls to fixed or mobile phone subscribers (as against only PC-to-PC now). Besides, operators are to be granted a single unified licence giving them the freedom to offer any type of service across India. Licensing, in turn, will be de-linked from spectrum allocation, which is to be done entirely on market-based pricing principles (as opposed to the controversial first-come-first-serve). However, the policy fails to clear the uncertainty surrounding key contentious issues like spectrum pricing, renewal, telecom mergers & acquisitions.

Meanwhile, the government has approved a new policy for acquisition of raw material assets abroad by Central Public Sector Enterprises (CPSEs). The new policy, aimed at facilitating faster acquisitions, proposes to enhance the investment limit by Navratna firms to Rs 3,000 crore from present Rs 1,000 crore for any asset buy out. Any additional amount beyond the prescribed limit would require the government's nod. An Empowered Committee of Secretaries, headed by the Cabinet Secretary, will be formed to make quick decisions in cases where the buyout amount exceeds the limit set by the government. For Maharatna firms, the limit is Rs 5,000 crore.

On the state level, the Madhya Pradesh Government announced its new mini-hydel power policy while the Uttarakhand Government is working on a new industrial policy for the state.

Under the new policy, the Madhya Pradesh Government is eyeing to attract Rs 4,500 crore for 30 mini hydel power projects in the state. All potential investors will be mandated to supply free power to the state government for a period of two years with certain conditions. Accordingly, investors who will set up five MW power plants will have to supply five per cent of the installed capacity. Those installing more than five MW, but less than 10 MW will have to supply eight per cent, and those who will set up 10 MW-25 MW power plants will have to supply 10 per cent of the power, free of cost to the state government for two years. In the event of delay in commissioning of the project, the developer except in the case of force majeure, will be required to compensate the loss of free power (revenue) to state non-renewal energy for the delayed period, as per the projected power generation in the DPR (Detailed Power Report) during this period.

Maharashtra Government has also unveiled its new industrial policy, which is aimed at attracting investments of Rs 5 lakh crore and creating 20 lakh jobs in five years after the policy is implemented. Among other sectors, manufacturing and services will be given top priority. Industries, such as textiles and fruit processing will be promoted in the policy. In the new policy, SOPS are likely to be provided to sick units located in the industrial estates controlled by the MIDC.