 "Union minister Anant Geete bats for tax breaks for auto makers")
However, the minister declined to divulge details with regard to his ministry's proposals made in this regard to Finance Minister Arun Jaitley ahead of the first budget of the Modi-led government to be presented on February 28.
Geete was speaking to Business Standard on the sidelines of an exhibition and conference organised by IEEMA and IEEE.
The Centre had not extended tax break to the auto makers from January 1 this year though the car makers argued that its removal could push the industry into negative territory. ''I am of the view that excise duty cut needs to be continued for the auto makers,'' he said.
On the import of electrical equipment in particular from China and other countries, Geete insisted that the government needs to increase the import duty for the benefit of local manufacturing units. ''It is under the government's consideration though no decision has been taken so far in this regard,'' he noted.
Geete said the government undertaking BHEL, which is currently passing through difficult times, needs to diversify and enter more and more global markets. ''BHEL was impacted heavily due to the import of electrical equipment. This apart, BHEL, which had increased its production capacity to 20,000 MW per annum from 10,000 MW could not use it fully due to the problems faced by the power sector on account of constraints regarding the availability of coal and gas. Now, the situation as far as coal is concerned is improving and BHEL is expected to improve its performance,'' he noted.
However, Geete reiterated that BHEL will have to diversify initially into the production of seamless pipes and later in other areas to consolidate its position. ''BHEL, which has entered into the Gulf and African markets, will have to extend its reach in other countries as well,'' he noted.
Geete said the government has launched a Rs 2,800 crore project for the development of seven research and development centres across the country in association with the National Automotive Testing and R&D Infrastructure Project.
''The objective is to develop skill sets for the auto sector in the country. R&D is necessary as almost all global auto companies have introduced their models and there is an urgent need for skill development for its operations,'' he added.
According to Geete, the government will release Rs 1,000 crore from April this year under the Rs 14,000 crore National Electric Mobility Mission 2020. The Mission envisages incentive scheme for faster adoption of Electric Vehicles. ''The Scheme aims to encourage faster adoption, domestic technology development (R & D) and manufacturing of full range of cleaner electric vehicle technologies for the creation of a strong, globally competitive, viable & self-sustaining EV industry,'' he informed.
Geete said the government would set up R&D centres for the capital goods sectors including heavy engineering and textile sectors. and has earmarked for Rs 680 crore.