CCEA nods auto testing project

The government on Monday cleared a Rs 1,718 crore (Rs 17.18 billion) project to set five centres for automotive testing and homologation throughout the country over the next six years.

"The project would be completed in two phases over the next six years," Finance Minister P Chidambaram said after a meeting of the Cabinet Committee of Economic Affairs, which approved the National Automotive Testing and Research and Development Infrastructure Project.

Under the project two full-fledged testing and homologation centres would be set up in Manesar in Haryana and another near Chennai, he said.

Sources said Kumbakonam might be the probable location for the centre in South.

"Apart from two new centres, the existing facilities at Automotive Research Association of India in Pune and at Vehicle Research and Development Establishment in Ahmednagar would be upgraded," Chidambaram said.

A National Centre for Testing of tractors and off-road vehicles along with national facility for accident data analysis and specialised driving training would come up at Rae Bareli in Uttar Pradesh, he said.

Under the plan, a National Specialised Hill Area Driving Training Centre and Regional In-Use Vehicle Management will be set up at Silchar in Assam.

The plan also provides for world-class testing tracks on around 4,000 acres of land. "The project would come up in Madhya Pradesh subject to availability of land," Chidambaram said.

Of the Rs 1,718 crore (Rs 17.18 billion) that would be needed for the facilities, the government will give Rs 817 crore (Rs 8.17 billion) as grant and Rs 273 crore (Rs 2.73 billion) as loan. Around Rs 118 crore (Rs 1.18 billion) will come from user charges that would be paid by the industry.

Around Rs 510 crore (Rs 5.1 billion) would come from auto cess. "The need for world class testing facility was being felt in view of the growing clout of Indian automotive industry at the world stage," Chidambaram said.

NATRIP Implementation Society will be headed by the secretary in the department of heavy industry.

The CCEA also authorised the department to carry out modifications in project components and finalising the location of the proving grounds based on the inputs provided by global consultants without altering the basic structure of the project and within the overall project ceiling.