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Tata Cummins to invest Rs 300 cr on BS-6 tech, expansion of Pune manufacturing unit

The investment will be made towards development of BS-VI technology as well as expansion of the manufacturing facility in Phaltan in Pune.

July 19, 2017 / 12:04 PM IST
 
 
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Engine manufacturer Tata Cummins will invest Rs 300 crore for upgrading engines to Bharat Stage 6 (BS-VI) emission norms which is due to be enforced from April 1, 2020, a senior company official told Moneycontrol.

The investment will be made towards development of BS-VI technology as well as expansion of the manufacturing facility in Phaltan in Pune.

The Rs 300 crore investment is in addition to the total of Rs 600 crore scheduled to be spent this year but earmarked in the previous year. Tata Cummins is a joint venture between Tata Motors and Pune-based Cummins Inc that makes diesel engines.

Anant J Talaulicar, Chairman and Managing Director, Tata Cummins said, “We are spending Rs 300 crore and another Rs 300 crore for development of products this year. Development of BS VI technology will be another Rs 300 crore. We might have to enhance the manufacturing capacity for this”.

A major focus for Cummins in the run-up to the implementation of BS-VI is the indigenisation of the technology. Since the technology is already in use in Europe the company said that to Indianise it will translate to a 50 percent drop in the cost of the technology.

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"We cannot just copy-paste that technology in India because that will be too expensive. The reduction in costs that we will achieve because of localizing it will be 50 percent compared to the cost in Europe, thus making it the cheapest in the world,” added Talaulicar.

Tata Cummins makes diesel-powered engines for Tata Motors’ range of medium and heavy commercial vehicles meant for non-defence and defence purposes. Diesel will come under intense scrutiny under BS-VI as the technology to upgrade diesel engines from BS-IV will be very expensive.

“Under BS-VI diesel engine becomes almost zero polluting. It will be nearly as though the vehicle is emitting clean air,” added Talaulicar.

Another focus area for Cummins will be alternate fuel technology such as hybrids and electric. While this technology is widely used in the western world and in China, in India this trend is slowly catching up.

“We offer hybrid technology in the form of parallel hybrids and series hybrids. We have done it with Tata Motors for bus applications. The volumes are not really great here; it's mostly (in) China. We are also looking at fully electric vehicles in battery systems and electronics,” added Talaulicar.
Swaraj Baggonkar
first published: Jul 19, 2017 12:04 pm

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