Lok Sabha Question No. 3301 (UNSTARRED), answered on 2018-08-07
Subject: Automotive Mission Plan
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Tejpratap Singh,Yadav, ANJU BALA

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK  SABHA UNSTARRED QUESTION NO. 3301 TO BE ANSWERED ON. 07.08.2018

## Automotive Mission Plan

## 3301.  SHRI TEJ PRATAP SINGH YADAV: SHRIMATI ANJU BALA:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a) whether the Government has formulated the Automotive Mission Plan, 2026 for development of automotive industry and if so, the details thereof;
- (b)  whether  the  Government  has  extended  the  timeline  for  the  National  Automotive  Testing  and R&D Infrastructure Project (NATRIP);
- (c)  if  so,  the  details  of  facilities  envisaged  to  be  part  of  NATRIP  that  are  in  various  stages  of planning;
- (d)  whether  the  Government  provides  incentives  for  Research  and  Development  investment  by automotive industries and if so, the details thereof;
- (e)  whether  the  Government  has  assessed  the  challenges  that  the  automotive  sector  is  presently facing and if so, the details thereof; and
- (f) the steps taken by the Government in this regard?

## ANSWER

## MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

- (a): Yes Madam, the salient features of Automotive Mission Plan 2016-26  are:
- i The Automotive industry to be a top job creator - 65 million additional jobs.
- ii The Automotive industry to be the prime mover of Manufacturing sector and 'Make in India' Programme.
- iii The  Automotive  industry  to  aim  at  increasing  export  of  vehicle  by  5  times  and components by 7.5 times.
- iv For success of AMP 2016, there is a need of coordinated and stable policy regime for the automotive sector
- v Specific interventions are envisaged to sustain and improve manufacturing competitiveness and to address challenges of environment and safety.
- (b): Yes Madam, as per the approval of CCEA in July, 2016, the timeline of NATRIP Project has been extended till June 2019 as per last facilies completion date.

(c): NATRIP has awarded most of contracts relating to Civil Infrastructure and procurement of Machines & Equipment for the testing facilities to be created at various centers.  The target dates for the completion of various ongoing facilities have been advanced in many cases for ensuring early completion.

(d): Yes Madam, Government is providing fiscal incentive of weighted tax deduction for R&D expenditure for in house R&D facility.

(e) & (f):  In the course of formulating AMP 2016-26, the Government has assessed the challenges being faced by the Indian Automotive Industry. These challenges include sustaining growth rate of output, export related issues, currency depreciation, congestion and pollution, inadequate infrastructure  development  ,  finance  and  taxation.  In  order  to  ensure  a  fair  and  predictable governing environment for the Indian Automotive Industry,  AMP 2016-26  spells out views on the path of evaluation of key policies for the Auto sector, so that all regulations impacting the industry are  formulated  comprehensively  in  scope  and  scale  to  be  implemented  harmoniously  across  the nation and both at the centre and the States.

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