(a) whether the regulatory environment in the country is becoming a challenge to
investment;
(b) if so, whether there is a proposal to assess the investment climate and business
regulations prevalent in different States;
(c) if so, the details thereof;
(d) whether the National Manufacturing Policy in taking care of such hurdles; and
(e) if so, the details thereof?
MINISTER OF STATE FOR PARLIAMENTARY AFFAIRS AND PLANNING (SHRI RAJEEV SHUKLA)
(a) The Twelfth Five Year Plan document which was approved by the National
Development Council in December, 2012 recognizes some issues which hinder the
growth of the industrial sector and they include availability of land, access to finance,
lack of depth in technology, delays in environmental clearances, barriers to
employment generation and deficient business regulatory environment.
(b) & (c) Each State differs in the prevailing regulatory environment and thereby in
the nature of investment climate. Assessments in this respect are made by the States
themselves. However, in order to improve investment climate, the Government have
recently taken up various measures, inter alia, the Companies Bill, 2012, FDI Policy
initiatives and e-Biz mission mode project under the National e-Governance Plan
(NeGP).
(d) & (e) The National Manufacturing Policy notified on 4th November, 2011 has
addressed some of the issues concerning rationalization and simplification of business
regulations that include simple and expeditious exit mechanism also for
manufacturing units. National Investment and Manufacturing Zones (NIMZs) is one
of the instrumentalities of the Policy. The Policy envisages the NIMZ and /or
industrial clusters to be governed by a special purpose vehicle (SPV) headed by a
government official. SPV is envisaged to have delegated power of clearances under
relevant laws and regulations wherever possible. Further, to enable the NIMZ to
function as self governing and autonomous body, the policy requires that it would be
declared by the State Government as an Industrial Township under Article 243
Q(1)(c) of the Constitution. The Policy is based on the principle of industrial growth
in partnership with the States. It is the prerogative of the States to adopt the
instrumentalities provided in the policy.