New Delhi: As the much awaited National Manufacturing Policy (NMP) has entered a deadlock due to inter-ministerial differences, Prime Minister Manmohan Singh has appointed Group of Ministers (GoM) to resolve the crisis.

According to the sources, Agriculture Minister Sharad Pawar will head the GoM. Other members of the group will include Environment Minister Jayanthi Natarajan, Labour Minister Mallikarjun Kharge, Law Minister Salman Khurshid and Minister of Micro, Small and Medium Enterprises, Virbhadra Singh.

In a meeting held on NMP last week, the differences between the ministries had come to the fore. Environment and Labour ministers raised objections on the provisions of the policy formulated by Ministry of Commerce and Industry.

However, the ministry presented the draft NMP before the Cabinet despite sharp criticism.

Even though the Department of Industrial Policy and Promotion (DIPP) had held discussions with Environment and Forest and Labour ministries before the draft was presented before the cabinet, it failed to yield results.

If the sources are to be believed, provisions of giving relaxation in labour and environment laws is the major hurdle in forming consensus over policy approval.

The Ministry of Environment and Forest has raised objections on the units to be established under National Manufacturing and Investment zones.

According to the provisions mentioned in the NMP, the industries manufacturing hazardous compounds will have to take permission from the Environment Ministry to establish plants under (NMIZ).

However, the small and medium scale units will not require grant from the ministry before setting the infrastructure. Opposing this, the environment ministry has demanded clearance for all industrial units.

Meanwhile, the Labour Ministry has objected to the provision of authorizing a single body to maintain provident fund, health and insurance claims of employees of the suggested small and medium scale industries.