— PHOTO: V. SUDERSHAN

ROADMAP: Prime Minister Manmohan Singh along with Minister for Heavy Industries, Santosh Mohan Dev (left), presenting copies of `Automotive Mission Plan 2006-2016' to Ratan Tata (third from right), Brijmohan Lal Munjal (second from right), and Raghu Modi, in New Delhi on Monday.

NEW DELHI: Prime Minister Manmohan Singh on Monday released the Automotive Mission Plan (AMP) 2006-16. The plan envisages an investment of $40 billion, besides providing direction to help transform India into a global automobile player in the next ten years.

It also proposes a 25-point agenda to facilitate emergence of India as a manufacturing and export hub for automotives.

Briefing media persons after the formal relase, Minister of Heavy Industries and Public Enterprises Santosh Mohan Dev hailed the plan as a document to be followed by the Government and the industry to make India a global player.

Asserting that the Mission Plan had been prepared with cooperation and participation of the industry, Mr. Dev said the turnover of the automobile industry, as projected in the document, would increase to $145 billion by 2016 from the current $35 billion, accounting for 10 per cent of the GDP.

In the context of the current level export of the automotive sector at $4.1 billion, he said it needed to be increased to a minimum of $35 billion to make India a big player in the global market.

"This should require investment of around $40 billion which the industry would like to ensure,'' the Minister said, adding that by 2016 the industry should provide employment to about 25 million people by 2016.

The AMP proposed a 25-point plan, including making India the manufacturing and export hub for small cars, multi-utility vehicles, two and three-wheelers, tractors and components.

Generally hailing the AMP, the industry said it provided a much-needed direction that would pave the way for faster growth of the sector which had acquired greater importance in view of the fact that the manufacturing base was shifting from developed countries to emerging economies like India and the country must benefit from it.

"Now, we have the support and guidance of the government and it will help us in planning our future investments in India,'' Honda Siel Cars India President and CEO Masahiro Takedagawa said.

Echoing a similar sentiment, Maruti Udyog Managing Director and CEO Jagdish Khattar said the plan would help in identifying key areas to propel growth in the sector.

Hyundai Motor India Managing Director H. S. Lheem welcomed the plan, but said the Government should be consistent in framing policies as the industry required time to follow any changes in norms.

Mr. Dev said focus on research and development was not adequate in the sector and the AMP aimed at giving incentives for R&D efforts.

The AMP envisages the formation of a monitoring committee under the chairmanship of the Secretary, Ministry of Heavy Industries and Public Enterprises. It will have representatives from various ministries, including finance, road transport, environment, commerce, shipping, railways, petroleum and natural gas and human resource development.

The committee, while monitoring the progress, will determine the time schedule for implementation.

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