Seven Auto Testing Centres will be set up by the Ministry of Heavy Industries, which will make India an auto hub. The cars, before hitting the road, will be tested at these centres. The government in an effort to invite more direct investment in the automobile sector from abroad such as carmakers from Thailand, Indonesia, and Malaysia are also allowed to test their products at these centres.
Currently the car manufacturers need to go to Europe and US for testing the products and this new centre, which will be the first of its kind in the country, will be set up with fully government-aided funds of Rs 1,800 crore. By 2011, among other places, Manesar, Ahmed Nagar, Pune, and Raibarelli, will have the testing centres.
The news was disclosed by Ambuj Sharma, Joint Secretary in the Heavy Industry Ministry, while he was inaugurating an Assocham-organized national summit on 'Public Buying : Bringing Transparency and Accountability.'
He also said "The ministry of heavy industries had last year also lobbied for the withdrawal of SED. But its request was turned down by the finance ministry. We are again pressurizing the ministry to waive it off, for which provisions are likely to be incorporated in next fiscal budget."