Auto industry protests green norms

The auto industry has risen in protest against the government's move to bring it under the Environment Impact Assessment (EIA) regulation, as it fears this will impede with introduction of new vehicles, upgradation of existing ones and expansion of capacity.

The draft notification states that the environment clearance will be mandatory for "expansion and modernisation of existing projects" and also for "any change in the product mix in an existing manufacturing unit, beyond the specified range".

If this came into effect, vehicle manufacturers would have to get environmental clearances for not only expansion and modernisation, but also routine changes in the product mix. The clearances, according to CII's head of environment management division K P Nyati, could take 10 months to a year.

The delay could deal a blow to the industry, which works on the principle of just-in-time delivery of inputs and shipments. Society of Indian Automobile Manufacturers (SIAM), in association with CII, has told the government that the industry was already monitored by the state pollution control boards and there was no need to bring under EIA's purview.

In September, the ministry of environment and forests issued a draft notification that envisaged an increase in the number of industries under the EIA regulation from 32 to 44. Automobiles were among the dozen-odd additions.

SIAM in its memorandum to the ministry has stated that the automobile industry "by and large source 70 per cent from outside and are basically assemblers and therefore an engineering company. Engineering companies are not subject to this requirement". Interestingly the $8 billion-odd automobile component industry has not been included in the EIA list.

In terms of land usage, SIAM has claimed that the automobile industry uses much lesser land than peer industries of the same size.

Further only 40 per cent of the land held by automobile units are used for manufacturing purpose, while the rest if for parking new vehicles, storage of raw materials and components, besides substantial area for test tracks and green belt.