The task force on auto policy under the ministry of heavy industry has constituted five sub-groups to address issues of demand creation, fiscal policies, exports, safety regulations and competitiveness in manufacturing technology. | |
| The groups are likely to submit its report two months prior to the next Budget. |
| |
| In order to increase volumes, a sub-group will look at ways to improve demand creation, brand building and improvement of infrastructure. These will include formulating tax policies for the auto industry and incentivising research and development. Tata Motors Managing Director Ravikant will head this group. |
| |
| Initiatives relating to investment, tariffs and duties will be the instruments to achieve volumes required. This follows Finance Minister P Chidambaram's recent announcement of tax concessions on small cars to encourage foreign investment. |
| |
| The group looking into exports and international business will be headed by Deep Kapooria, ex-president, Automotive Components Manufacturers Association of India (ACMA). |
| |
| The 2002 policy had set a target of exporting components worth $ 2.7 billion by 2010 and $ 2.5 billion by 2005. In 2004-05, the auto component exports stood at $ 1.4 billion. |
| |
| Pawan Goenka, chief operating officer, Mahindra and Mahindra will work on suggestions to improve competitiveness in manufacturing technology. |
| |
| Jagdish Khattar, CMD, Maruti Udyog Limited, will be heading the sub-group on safety, environment and regulation. The policy aims to develope domestic safety and environmental standards at par with international standards. |
| |
| Issues relating to human resource development will also be taken up by a sub-group. It will be headed by Surinder Kapoor of Sono Koya. |
| |
| The meeting to formalise these decisions was convened by Priyadarshi Thakur, secretary, ministry of heavy industry, and included representatives from Society of Indian Automobile Manufacturers (SIAM), ACMA, Tractors Manufacturers Association (TMA) and the joint secretary, in charge of the auto division from the heavy industry department. |
| |
| The task force will formulate a 10-year, comprehensive mission plan called Decadal Mission Plan 2005-15 to strategise and prescribe policy measures for passenger cars, commercial vehicles, auto components and two/three wheelers. |
| |
|
| |
