NIMZ at Medak boosts job sector

Setting up of the National Investment and Manufacturing Zones (NIMZs) across the country was announced by the Centre in 2013 as part of the National Manufacturing Policy, unveiled with an objective of enhancing the share of manufacturing sector in the GDP from 16 percent to at least 25 per cent within a decade, and creating 100 million jobs by 2022.

The National Manufacturing Policy is based on the principle of spurring industrial growth in association with State Governments. The Centre would provide incentives for infrastructure development.

The policy specifies that the Centre would bear the cost of master planning for the NIMZ and provide/improve external physical infrastructure linkages including rail, road (national highways), ports, airports, and telecom in a time-bound manner. The infrastructure would be created through PPP and the Centre would also extend viability gap funding through existing schemes.

The ‘Make in Telangana got the shot in the arm for the industrial sector, a high-level committee (HLC) of the department of Industrial Policy and Promotion (DIPP) accorded final approval for the National Investment and Manufacturing Zone (NIMZ) in Medak district.

It also sanctioned Rs.1000 crore grants for the first phase of the project besides giving in-principle approval for the proposed Pharma City. NIMZ also facilitate the State government to start works to provide infrastructure immediately.

The NIMZ, Medak is expected to have transforming impact on the socio-economic conditions otherwise drought-prone are with most of the agricultural activity being rain-fed with some area cultivated under open/tube wells and a few minor irrigation sources. It is estimated that the NIMZ could attract investment to the tune of over Rs.43,000 crores.

Announcement of final clearance of NIMZ at Zaheerabad of Medak district has generated a lot of debate in the area, mostly about the escalation in the land rates as people depend on Hyderabad for most of their employment, education and health needs. Lands in this area have already being sold at Rs. 5 to 6 lakh per acre. Once established, the NIMZ will change the face of our area.

To begin with, the State government plans to acquire 2500 acres by December end. Aerospace and defence manufacturing will be one of the major sectors having a manufacturing base in NIMZ. Plans are afoot to have clusters for Chinease as well as South Korean SMEs in the first phase of the NIMZ project.

After bifurcation of erstwhile Andhra Pradesh and setting up of Telangana Industrial Infrastructure Corporation (TSIIC), the basic works on NIMZ like land acquisition works were speeded up. The government sanctioned Rs.20 crore for payment of compensation for acquisition/alienation of land for establishment of NIMZ.

The NIMZ was planned on 12,000 acres of land and already 3700 acres of land is collected and the total investment is expected to touch Rs.40,000 crore over a period of time. International Pharma city will be constructed in an area of 12500 acres of land. For this project also the State government also 4700 acres land is collected and the Central government is willing to give 40 percent of investment for infrastructure facilities in the Pharma City. In all, the NIMZ is expected to provide direct employment to three lakh people and 4.5 lakh indirect jobs within seven years of the development of the Zone.

Once the construction of NIMZ is completed, the State government will get Rs.7000 Crore and for Pharma city another Rs.7000 crores will get from the Central government. The overall NIMZ will developed in three phases.

The first phase of NIMZ is expected to create an employment potential of one lakh jobs. The NIMZ Medak was announced by the Central Government in 2013. But final approval from DIPP was pending.

It is expected that employment- intensive industries like textiles and garments, leather and footwear, gems and jewellery, food processing and others and also capital goods industries like machine tools, heavy electrical equipments, heavy transport, earth moving and mining equipments will come up NIMZ.

Aerospace, shipping, IT hardware and electronics, telecommunication equipment, defence equipment and solar energy especially auto-mobile, pharmaceuticals and medical equipment are also likely to come up in NIMZ.

NIMZs could not take off in the most states because the states do not have required the land available. To speed up the NIMZs, the Central Government recently announced that instead of the stipulated maximum threshold of 50 sq.km (5,000 hectares), states may be allowed to start NIMZs, if they are in possession of a sizeable area of contiguous land about 12.5 sq.km (1250 hectares) or above and give an assurance that the 50-sq.km criterion will be met within a given period

The idea is to help the states that have got in-principle approval for setting up NIZMs to start work on these projects as soon as possible. The temporary relaxation of the minimum area is expected to immediately benefit the NIMZ at Medak and enables the State government to complete the first phase in stipulated time.

G.Rajendera Kumar