Auto project likely to be okayed this week

The Cabinet is expected to take up the Rs 1,700-crore national automotive testing and research and development infrastructure project (Natrip) for approval this week.

The Natrip project will develop automotive testing and homologation facilities for both heavy and light motor vehicles.

The government will set up a testing centre in Manesar, Haryana, with an investment of Rs 500 crore. For the western region, the government will take over and upgrade the testing facilities provided by Automotive Research Association of India (ARAI). A similar facility will come up near Chennai.

Nearly 70 per cent of the project cost are expected to be met by the industry through a levy of user charges for the testing facilities, and also through collected auto cess. The auto cess alone would be able to garner nearly Rs 1,000 crore over the next six years, officials told Business Standard.

Citing a Planning Commission report, officials said nearly 80,000-1,00,000 people lost their lives due to automobile accidents and the economic costs because of these deaths amounted to Rs 50,000 crore.

"Superior automotive testing facilities will directly curb the number of accidents to a certain extent," officials said.

The project, once approved, would boost volumes and exports in the Indian automobile sector as these testing facilities would multiply the certification and validation capabilities in the industry, officials said.