No.9/12/2012–MPS
Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
(Manufacturing Policy Section)
344, Udyog Bhawan,
New Delhi
Dated : 5th March, 2013
To
Chief Secretaries of all State/UT Governments as per list attached
Subject:Definition of ‘Cluster’ to be used for dispensations under the National Manufacturing Policy – regarding.
Sir/Madam,
The National Manufacturing Policy was notified by Govt. of India vide Press Note No. 2 dated 4th November, 2011. Paragraph 6 of the Press Note states that while the NIMZs are an important instrumentality, the proposals contained in the Policy apply to manufacturing industry throughout the country including wherever industry is able to organize itself into ‘clusters’ and adopt a model of self-regulation as enunciated (copy enclosed).
2. In the context of the application of the provisions of the National Manufacturing Policy, I am directed to convey the definition of ‘cluster’ as below:‑
`a cluster is a concentration of manufacturing industry units located within a clearly demarcated geographical area with the land use notified as such by the state government’.
Explanation: The geographical area to be notified may be decided by the state government depending on the nature of the industry e.g. there could be a large scale unit with 10-15 ancillary/downstream units in its vicinity or there could be a number of small and medium scale units producing for instance, bicycles and bicycle parts as in Ludhiana, etc.
3. For purposes of the dispensations under the National Manufacturing Policy (NMP), the cluster will have to be regulated as enunciated in the NMP.
4. You are therefore requested to take necessary action for implementation of the National Manufacturing Policy in industrial areas outside the National Investment and Manufacturing Zones (NIMZ), accordingly.Encl: As above
Yours faithfully,
(Gopal Prasad)
Deputy Secretary to the Govt. of India
Tel: 2306 2318
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Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
(Manufacturing Policy Section)
PRESS NOTE NO. 2 (2011 SERIES)
Subject: National Manufacturing Policy.
The Government of India has announced a national manufacturing policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. It also seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value addition in manufacturing has received special focus.
2. The share of manufacturing in India’s GDP has stagnated at 15-16% since 1980 while the share in comparable economies in Asia is much higher at 25 to 34%.
3. Inadequate physical infrastructure, complex regulatory environment and inadequate availability of skilled manpower have constrained the growth of manufacturing in India.
4. Recognizing that the manufacturing sector has a multiplier effect on the creation of jobs, even in allied sectors, the government has brought out this policy.
5. The policy is based on the principle of industrial growth in partnership with the States. The Central Government will create the enabling policy frame work, provide incentives for infrastructure development on a Public Private Partnership (PPP) basis through appropriate financing instruments, and State Governments will be encouraged to adopt the instrumentalities provided in the policy.
6. The proposals in the policy are generally sector neutral, location neutral and technology neutral except incentivization of green technology. While the National Investment and Manufacturing Zones (NIMZs) are an important instrumentality, the proposals contained in the Policy apply to manufacturing industry throughout the country including wherever industry is able to organize itself into clusters and adopt a model of self-regulation as enunciated.
7. The approved policy document is annexed to this Press Note.
(Anjali Prsad)
Joint Secretary to the Government of India
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File No. 10 (6) / 2010 – MPS
Dated: 04th-November, 2011.
Copy forwarded to Press Information Officer, Press Information Bureau, Shastri Bhawan, New Delhi, for giving wide publicity to the above Press Note.
