54th SIAM convention promises growth, better infra and revised rules

Ever since there was a possibility of a new Government taking charge, the Auto industry has been on an upswing. Five months of this financial year has seen positive sales for the industry but skepticism has loomed large over the extent of this purple patch by all corners of the automotive Industry. Unreliable government policies were the reason for this doubt but today at the 54th SIAM annual convention, the Government has vowed support and a welcoming attitude towards the automotive industry.

Anant Geete, Minister of heavy Industries and Public Enterprises and Nitin Gadkari, Minister of road transport and highways, both expressed the Government’s commitment towards the auto industry. The Government plans to set up 2 lakh crore for improving road network and expanding sea lanes for transportation of goods. Gadkari further added, "We are fast-tracking the decision making process and weeding out corruption and red-tapism from government functioning besides introducing innovation.”

The Government further plans to set up 350 electronic toll plazas and weighing scales along highways to curb overloading. The Motor Vehicle act has also been amended. A new draft incorporating the best practices of six advanced nations - US, Japan, Germany, UK, Singapore and Australia has been prepared that is expected to be passed in the upcoming winter session.

Nitin Gadkari also urged the industry to introduce ethanol friendly engines saying that we can build the capacity to have our own fuel and as a result reduce imports but this looks unlikely in the near future. It would require large scale development of biofuel and a separate network to supply fuel across the nation. Adoption of bio-fuel equipped engines in mainstream transportation seems like a farfetched idea as of now.

Lastly, the National Electric Mobility Mission Plan that’s been on the back burner for a while now finally will see a revival. The Government plans to kickstart this plan starting next month in Delhi, followed by a nationwide expansion. This should give the dormant Electric car and bike industry much needed relief since the previous government announced the plan but didn’t implement it to its full effect.