NEW DELHI 16/DEC/2014: Prime Minister Narendra Modi\'s showpiece Make in India project can potentially get unmade by lack of administrative clarity on two crucial environmental policy areas green regulations on setting up large factories and land acquisition norms for green clearances. Industry complaints on both these are building up even as potential investors in Indian manufacturing wait for the environment ministry to clarify matters. Industrialists who spoke to ETfor this story did so on the condition they not be identified.
The policy hurdle in case of setting up large factories is a UPA-2 legacy the Jayanthi Natarajan-run environment ministry had issued a rule prohibiting construction of factories larger than 20,000 square metres unless a green clearance was obtained. The Modi government had moved on this matter and on September 11, two weeks before the prime minister launched the Make In India initiative, the environment ministry had said it will deal with this UPA-2 rule.
But nearly three months after the high-voltage launch, the ministry is yet to notify the change in the rule. In government, there\'s usually a 60-day window from the day a ministry proposes a clarification to an existing rule and the finalisation of the draft. For the large factories/green clearance rule, the 60-day period ended on November 12. The environment ministry told ET that the draft is being finalised and will soon be put up to the minister, Prakash Javadekar. However, industry, including MNCs, are complaining. The ministry said it has received stakeholder views in the matter. Natarajan had introduced the large factory rule in early 2013. The first company to be affected by the rule was Hyundai Motors India, which received this clarification from UPA-2\'s environment ministry.