Previous Year Question

India’s first National Investment and Manufacturing Zone—NIMZ—was proposed in Prakasam district of Andhra Pradesh.

The NIMZ concept was introduced under the Government of India’s National Manufacturing Policy, 2011. It sought to promote manufacturing, investment, exports, infrastructure and employment through large integrated industrial areas.

The broad objectives of the National Manufacturing Policy included:

• Raising manufacturing’s share in GDP to approximately 25% over the longer term.

• Creating approximately 100 million additional manufacturing jobs by 2022.

• Increasing domestic value addition and technological capability.

• Improving the global competitiveness of Indian manufacturing.

• Promoting environmentally sustainable industrial development.

Important features of NIMZs included:

• Development as large integrated industrial townships with world-class infrastructure.

• A general minimum area of 5,000 hectares for a new greenfield NIMZ.

• At least approximately 30% of the total area to be used as the processing area.

• A major role for State Governments in providing land and external connectivity.

• Possible Central assistance for master planning and national infrastructure such as railways, roads, airports and telecommunications.

• Management of the zone through a Special Purpose Vehicle.

Factual caution: The book’s explanation mentions the availability of only “10 square kilometres” of land in Prakasam district. This does not correspond to the general minimum NIMZ policy requirement of 5,000 hectares, or about 50 square kilometres. The area-related detail in the book is therefore unreliable, although its marked answer—Andhra Pradesh—is correct.