Auto policy's main plank to protect domestic industry - Joshi

By Our Staff Correspondent

MUMBAI, DEC. 7. The automobile policy is awaiting Cabinet approval and is expected to be announced shortly. It has been circulated to the departments concerned which have given their consent, said Mr. Manohar Joshi, Union Minister of Industry (Heavy Industries and Public Enterprises). Mr. Joshi was speaking at the inauguration of the second Mumbai Auto Show being held from today.

Mr. Joshi said the Government would put restrictions on import of used cars. It had studied the experience of markets where used car imports were allowed and found that this had worked against the domestic industry. While a ban on such imports was not permitted according to World Trade Organisation (WTO) regulations, Mr. Joshi said, restrictions could be put in place.

As regards Government's disinvestment in Maruti Udyog Ltd. (MUL), the Minister indicated that a clearer picture would be available on December 23 as the committee looking into the disinvestment process would have submitted its report by then. Mr. Joshi said the approval would be for ``the report, or something beyond that.'' He also added that the Shiv Sena (Mr. Joshi's party) felt that Indian industry must be given a good chance in bidding for MUL.

The salient features of the automobile policy would include checking used car imports, duty relief on select items of import as also ensuring that the Indian automobile sector flourished. However, Mr. Joshi declined to comment on whether the policy would have minimum investment levels for global manufacturers seeking to enter India.

The automotive industry, according to Mr. Joshi, had an investment of Rs. 50,000 crores and a turnover of Rs. 60,000 crores in the last financial year. Besides, the sector had strong forward and backward linkages to innumerable small and medium industries and through its multiplier effect, provided direct employment to 4.5 lakh persons and indirectly employed more than a crore.

The Auto Show 2000 has been jointly organised by the Confederation of Indian Industry (CII), the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA).

Speaking on the importance of infrastructure, Mr. Joshi said, ``Maintenance of vehicles and improving the road infrastructure assume critical importance. It is difficult to the complete road infrastructure projects on schedule and difficult to progress at the speed that is required by industry.''

On the need for infrastructure facilities in Mumbai, the Minister assured the State that he would impress upon the ministries concerned at the Centre to get clearance for the establishment of a huge permanent convention centre in Mumbai on the lines of Pragati Maidan in Delhi.

Other speakers at the function included Mr. Baba Kalyani, Chairman of the second Mumbai Auto Show, Mr. Abhay Firodia, President, SIAM, Mr. Pradeep Mallick, Chairman, CII (Western Region) and Mr. L. Ganesh, President, ACMA.

Send this article to Friends by E-Mail

Section  : Business
Previous : Bullion rates
Next     : Rupee holds steady