The Hindu Business Line : Finance Ministry sits on proposal for auto testing facilities

THE Ministry of Heavy Industries' plan to set up two automobile crash testing facilities is getting delayed with the Finance Ministry sitting on the proposal for more than two months now.

The Expenditure Finance Committee (EFC) under the Ministry of Finance, headed by the Expenditure Secretary, which has to approve the project before it is finally placed before the Cabinet, has not yet taken up the issue.

It is likely to take it up only after the new Government is in place.

"Hopefully, the project should get a clearance by the end of this month," said an official.

The Ministry of Heavy Industries had been contemplating on setting up two automobile testing facilities in the country, one each in the north and the south, with an estimated outlay of more than Rs 1,600 crore.

Earlier this year, the Planning Commission had also okayed the detailed project report after which the proposal was sent to the Finance Ministry.

After that, according to officials, the election process started and things, in general, slowed down.

The EFC meeting, however, is a bureaucratic exercise.

The matter could have been taken up since it was already cleared by the Planning Commission and kept ready for the new Cabinet to take a final view on the matter, the MHI official said.

These two proposed automobile testing facilities being set up would be the only such facilities in Asia outside Japan.

According to the Ministry's plans, both the centres are expected to be ready for use by the end of fiscal 2006-07 if things are not delayed any further.

Work on the northern centre has already started with the Government sanctioning Rs 49 crore at Manesar in Haryana, close to the Maruti Suzuki factory.

According to the plans, the project would be funded jointly from the cess fund collected from automobiles sales as well as through direct grants from the Government.

The centres would be equipped with a proving ground and all sorts of crash testing facilities, which are not at present available in the country.