AIDP implementation: Committee set up to review progress

The government has decided to review the overall implementation progress of Auto Industry Development Plan (AIDP) and a committee has been constituted to figure out how much progress has been made on the targets fixed in the plan, it is learnt.
Sources said that under the AIDP, local industry was required to achieve localisation of certain parts by 2010, and tariff of those parts was to be increased from 32.5 percent to 50 percent. They termed these parts critical which were not localised during the past four years and, maybe, this was the reason behind the Engineering Development Board (EDB) decision.
An official of the EDB said that the AIDP was prepared in 2007 with a pre-announced structure of five years to allow investment in the auto sector for the development of the industry. According to him, the AIDP was aimed at facilitating the industry's integration into the global supply chain by maximum indigenisation. The envisaged localisation of parts under the plan was that car manufacturers would transfer technology and know-how to the vendors for manufacturing of alternator, starter motors, water pumps, fuel pump, fuel filter, seat reclining, power steering, engine and transmission. He termed the progress on localisation very dismal and attributed it to many factors including global slum in the auto sector.
The meeting reportedly decided to take up the matter and decide about the future of Tariff Based System (TBS), part of AIDP, in the next meeting in the light of detailed discussion and consultation with all stakeholders.
A detailed presentation on local manufacturing and assembling of electric car was given to the meeting of Auto Industry Development Committee (AIDC) and it was decided that level playing field would be provided to sponsor of the project with the existing manufacturers. Some members said that power shortage issue should be taken into consideration before approval for local manufacturing and assembly of electric cars. The meeting also discussed electricity losses in the process of recharging of electric cars.
The AIDC reportedly welcomed the concept of electric car and agreed to consider permission for local assembly of such a car under the tariff based system and the EDB would process the case as per prevailing practices. It was agreed that in the case of non-common parts, it would be up to the EDB to recommend concession for only those electrical parts and components which are specific to electric cars and not used in internal combustion engine cars.