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Home arrow Auto component arrow ACMA seeks Rs 7,500 crore Technology Development and Upgradation Fund
ACMA seeks Rs 7,500 crore Technology Development and Upgradation Fund Print E-mail
Written by James   
Thursday, 03 February 2011
Bangalore: The Automotive Component Manufacturers Association of India (ACMA) has asked the finance ministry for a Rs 7,500 crore (Rs 75 billion) Technology Development and Upgradation Fund (TUDF) for use over a staggered five year period (2012 to 2016).

The fund is intended to finance and support companies as they modernise and upgrade technology to meet the  requirements of both domestic and overseas customers and to increase competitiveness in the global automotive industry market.

According to ACMA Executive Director,Vinnie Mehta, The fund will aid innovations which ,in turn, would lead to the development of new manufacturing technologies and this would promote additional investment. He said that India needs to establish itself as product development hub if auto component exports are to achieve the ambitious US$25 billion by 2016.

To develop and enhance its technology capacities,the auto component sector needs to invest in three main areas: Rs 2,000 crore towards light weighting with focus on fuel efficiency , Rs 2,500 crore towards engine and power train and Rs 3,000 crore towards manufacturing technologies. This could  come from TUDF spread over a five year period, starting with Rs 1,000 crore in first year gradually scaling up to Rs 1,250 crore in 2013, Rs 1,500 crore in 2014, Rs 1,750 crore in 2015 and Rs 2,000 crore in 2016.

Arvind Kapur, Vice President, Automotive Component Manufacturers Association of India, stated that according to a study conducted by ACMA,the forecast is that the country  would  be producing about 10 million passenger vehicles, about 30 million motorcycles, about 2.2 million commercial vehicles, and about 1.2 million tractors by 2020.

The auto component industry which is today at 26 billion dollars would grow to 55 billion dollars by 2015 and 110 billion dollars by 2020.
 
"The automotive component manufacturers will have to invest $2-3 billion every year to meet the projected demand of the OEMs. To enable us to delivery the components required over the next five to 10 years, the machine tools industry has to scale up seven-eight times its production capacity," Kapur said.

Arun Maira, Member of the Planning Commission of India, said that the manufacturing sector must create at least 100 million jobs in the next 15 years to engage the people of this country according to its growth. "The manufacturing sector has not grown faster than the growth of the economy in the last 15 years.It has not been the engine pulling the economy, it has gone along with the economy. We need the manufacturing industry to grow at least 2 to 4% higher than the growth of the economy. If the economy grows at 10% , manufacturing should grow at 12 to 14%," he said.

 
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