The recently approved National Manufacturing Policy has stringent norms to ensure ‘green manufacturing’.
These include mandatory environmental and water audit for all industrial and institutional units in the National Investment and Manufacturing Zones (NIMZs).
According to the policy, establishment of NIMZs is a key instrument to catalyse the growth of manufacturing.
The policy has also made activities such as wastewater treatment and rain water harvesting compulsory for all industrial and institutional units in the NIMZs.
However, there are incentives to help companies follow these mandatory activities as well as for promoting renewable energy and green buildings.
Environmental and water audits have to be carried out by the industrial/institutional units through external auditors/firms drawn from an approved panel of environmental auditors.
The policy states that the panel as approved by the Green Manufacturing Committee (GMAC) will be maintained by a special purpose vehicle (SPV). The GMAC comprises representatives from the Union Ministries concerned and relevant sectoral experts from outside the Government. The SPV will be headed by a senior Government official.
However, there is a 25 per cent grant to small and medium enterprises for expenditure incurred on environmental and water audits subject to a maximum of Rs 1 lakh and subject to improvements/correctives being carried out.
The incentives include an exemption from water cess.
Besides, units practising zero water discharge will be eligible for 10 per cent one-time capital subsidy on the relevant equipment/systems subject to actual usage for one year and third party certification (panel approved by GMAC).
There is also rebate on water cess to industries setting up waste-water recycling facilities.
The policy also assures appropriate incentives under the existing Central and State Government schemes for specific renewable energy projects.
It has also promised an incentive of Rs 2 lakh for all green buildings (more than 2,000 sq.m. built up area) in the NIMZ including industrial/institutional/ commercial/residential which obtain green rating under the Indian Green Building Council (IGBC/LEED) or GRIHA systems.
