Govt to set up National Automotive Board in 2-3 months

The government today said it will set up a National Automotive Board as a nodal agency for all policy and certification related issues of the automobile industry in the next 2-3 months.

The board will be a coordinating authority between all departments and bodies related to the automobile industry and it will frame guidelines on various issues, such as recalls of vehicles that has not so far been properly monitored.

"We are preparing to set up the National Automotive Board (NAB). It is in advanced stage and in the next 2-3 months, it will be in place," Department of Heavy Industry Joint Secretary Ambuj Sharma told reporters here.

The NAB will mainly be the coordinating authority for the upcoming seven automotive centres of National Automotive Testing and R&D Infrastructure Project (NATRiP), he added. 

"All the certifications such as mileage, pollution checks and homologations will come under NAB's ambit. This is being created to have a single window clearance body for the automotive industry in the country," Sharma said, while announcing the 'Asia Pacific Automotive Conference 16', to be held for the first time in India at Chennai on October 6-8.

The NAB is also considering to formulate guidelines regarding recalling of vehicles in the country. 

"Currently the guidelines for recalls by companies are being debated, but these have not reached at a conclusion. It is also discussing imposition of any sort of penalties to a auto maker if it does not recall the vehicle despite
problems," Sharma said.

Besides, the NAB will look into other policy-related issues such as electric and hybrid mobility and replacement of vehicles, he added.

"We have set up a demo centre in Chennai for replacing old vehicles and how to recycle them. If everything goes well, we hope this to be fully functional by the end of this fiscal," he said.

When asked about labour law reforms, following the recent incidents of unrests at various manufacturers' factories, Sharma said: "Labour laws or in fact any law is not sacrosanct or permanent. Labour laws will have to change with time. If the industry feels so, the Labour Ministry will look into it".

On the ongoing slowdown in vehicle sales, he said the growth may come back during the current fiscal if the interest rates and raw material prices stabilise in the short-term. 

Asked if the government will provide any tax incentive to boost sales, Sharma said: "Giving any excise benefit can be looked at during the next Budget. In the past also, rates had been tweaked to give fillip to the demand".