Lok Sabha Question No. 1844 (UNSTARRED), answered on 2018-07-30
Subject: Setting up of NIMZ
Ministry: COMMERCE AND INDUSTRY
Asked by: VENKATESWARA RAO MAGANTTI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1844. TO BE ANSWERED ON MONDAY, THE 30 TH   JULY,  2018.

## SETTING UP OF NIMZ

## 1844.  SHRI MAGANTTI VENKATESWARA RAO (BABU):

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Government  proposes  to  set  up  the  National  Investment  and Manufacturing Zones(NIMZs) in the country;
- (b) if  so,  the  details  thereof  and  the  manner  in  which  it  is  different  from  the Special Economic Zone Scheme particularly in Andhra Pradesh;
- (c) whether the Government has been giving any tax incentives to the above said zones; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) (SHRI C.R. CHAUDHARY)

- (a) & (b): National  Investment  &  Manufacturing  Zones  (NIMZs)  are  one  of  the important instruments of National Manufacturing Policy, 2011.  NIMZs are envisaged as large areas of developed land with the requisite ecosystem for promoting world class manufacturing activity.  So far,  three NIMZs namely Prakasam (Andhra Pradesh), Sangareddy (Telangana) and Kalinganagar (Odisha) have been accorded final approval and 13 NIMZs have been accorded in-principal approval. The details of these 13  NIMZs  are  given  at  Annexure.  Besides  these,  eight  Investment Regions  along  the  Delhi  Mumbai  Industrial  Corridor  (DMIC)  project have  also  been  declared  as  NIMZs.  Details  of  8  DMIC  NIMZs  are provided in Annexure.

The  main  objective  of  Special  Economic  Zones  is  promotion  of exports, while NIMZs are based on the principle of industrial growth in partnership  with  States  and  focuses  on  manufacturing  growth  and employment generation. NIMZ are different from SEZs in terms of size, level of infrastructure planning, governance structures related to regulatory procedures, and exit policies. There is no difference between SEZs set up in Andhra Pradesh and SEZs in other general States.

- (c) & (d): The National Manufacturing Policy (NMP) provides inter-alia for:
- i. Relief from Capital Gains Tax on sale of plant and machinery of a unit  located  in  a  National  Investment  and  Manufacturing  Zone (NIMZ)  in  case  of  re-investment  of  sale  consideration  within  a period of three years for purchase of new plant & machinery in any other unit located in the same NIMZ or another NIMZ. [Para 3.5 of the policy]
- ii. Rollover relief from long term Capital Gains tax to individuals on sale of a residential property (house or plot of land) in case of reinvestment of sale consideration in the equity of a new start-up SME company in the manufacturing sector for the purchase of a new plant and machinery. [Para 6.2(i) of the policy]
- iii. Tax pass-through status for Venture Capital Funds with a focus on  SMEs  in  the  manufacturing  sector.  These  VCFs  will  be required  to  be  registered  under  the  Securities  and  Exchange Board  of  India  (Venture  Capital  Funds)  Regulations  1996  and appropriately  notified  under  the  Income  Tax  Act  [Para  6.2(ii)  of the policy]

*******

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UN-STARRED QUESTION NO.1844 FOR ANSWER ON 30.07.208.

The  details  of  thirteen  NIMZs  have  been  accorded  in-principle  approval  are  as under:

- i. Nagpur in Maharashtra
- ii. Chittoor in Andhra Pradesh
- iii. Hyderabad Pharma NIMZ in Rangareddy District, Telangana
- iv. Tumkur in Karnataka
- v. Kolar in Karnataka
- vi. Bidar in Karnataka
- vii. Gulbarga in Karnataka
- viii. Ramanathapuram District in Tamil Nadu
- ix. Ponneri Taluk, Thiruvallur District in Tamil Nadu
- x. Auraiya District in Uttar Pradesh and
- xi. Jhansi District in Uttar Pradesh
- xii. Ahmedabad and Mehsana District of Mandal-Becharaji Special Investment Region, Gujarat
- xiii.  Ahmedabad District of Mandal-Becharaji Special Investment Region, Gujarat.

The details of eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project have been declared as NIMZs are as under:

- i. Ahmedabad-Dholera Investment Region, Gujarat
- ii. Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh
- iii. Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra
- iv. Dighi Port Industrial Area, Maharashtra
- v. Manesar-Bawal Investment Region, Haryana
- vi. Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan
- vii. Jodhpur-Pali-Marwar Region in Rajasthan
- viii. Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh

*******