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Seven Automobile Testing Centres to be set up in India Print E-mail
Written by Vijay   
Friday, 18 September 2009
New Delhi: Seven Auto Testing Centres will be set up in India with government aided funds of Rs.1800 crore. These centres would become operational by September 2011 in places like Manesar, Pune, Ahmed Nagar, Raibarelli etc.

According to Mr. Ambuj Sharma, Joint Secretary in Heavy Industry Ministry, car manufacturers currently have to go to Europe and America for testing their  products. International automobile manufacturers would also be allowed to test their products at these centers.

He said, while inaugurating a summit on bringing transparency and accountability in Public Buying, that the government has made up its mind to give micro, small and medium sized enterprises (MSMEs) nearly 20% share in total government procurements to encourage SMEs sector. Mr. Sharma said that Ministry of Heavy Industries and many other government departments have opposed MSMEs Ministry proposals to allow them have 10% price preference in total government annual procurements and purchases. This has been opposed and shot down since 10% price preference would push up cost of production which should be avoided during times of stiff competition.

Mr. Ambuj Sharma said that the Ministry of Heavy Industries is pressurizing Finance Ministry to waive off Special Excise Duty (SED) of Rs.15,000/- and Rs.20,000/- respectively in each car of capacities ranging 1500 CC and 2000 CC. The Finance Ministry, last year, had levied aforesaid SEDs on big fuel guzzler cars to contain carbon emissions in atmosphere. The provisions are likely to be incorporated in next fiscal budget.

Dy. Director General, DGS&D, Mr. A K Jain who also spoke on the occasion said that his Department has finalized Most Favored Price Agreement to enable suppliers to sell branded and quality products in all government purchases to concerned stakeholders.

Additional Member Railways Stores Ministry of Railways, Mr. M P Juneja in his keynote address said that current Railway’s procurement were around Rs.30,000 crore per annum which would go up to Rs.1 lakh crore in next few years. He appealed industry not to supply sub-standard products to government after they have obtained purchase orders from it.  Experience has shown that private suppliers in the past have been supplying poorer quality products to railways and other government departments and after some of their supplies are rejected, they move to courts and tribunals taking advantages of L1 Clause in government orders.

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