Govt promises export sops, excise cuts

The Government today assured the automobile industry all possible help by way of sops for export or excise duty cuts to sustain the growth in the sector.

The Government today assured the automobile industry all possible help by way of sops for export or excise duty cuts to sustain the growth in the sector. The industry has been peeved by lack of enough incentives for exports and has been hurt by hardening of interest rates in the domestic market. 8220;In the first four months this year, the performance of the automobile sector has been lower than what we had envisaged.

8220;The passenger car segment has grown by 13.03 per cent while the commercial vehicle segment has grown by only 2.06 per cent. The two wheeler segment has actually decelerated and performance of the three wheeler segment has also not been encouraging,8221; said Union Heavy Industries and Public Enterprises Minister Santosh Mohan Dev. 8220;We are keenly watching the outcome in the second quarter. If need be, we will certainly intervene to sustain growth.8221;

The ministry has written to the finance minister for excise duty cuts and also favoured sops for companies that achieve a minimum threshold of export volumes. Dev also suggested that the struggling sectors should take a cue from passenger car segment that has introduced new products in the market and kept the growth story intact.

8220;If there is not enough demand in the domestic market, then please export,8221; he said. 8220;Our emphasis would be on export and we would incentivise it to make India a global hub. Like Germany, we will seek a minimum amount on volume of exports, over which there will be reduction in taxes,8221; he stated.

The government is also in the process of finalising the implementation committee for the automotive mission plan 2006-16. 8220;As compared to last year8217;s announcement of investment of Rs 11,000 crore, the figure as per the latest available information is over Rs 64,000 crore and I am told more announcement are under way. Yet many of these investment are perhaps at the sub-optimum scale,8221; Dev added.

8220;The AMP has been placed before the parliamentary standing committee and various stake holders, including SIAM, have interacted with the committee,8221; he said.