CII's auto panel plan in limbo

The move by the Confederation of Indian Industry to set up its own automobile committee, in spite of its close ties with the Society of Indian Automobile Manufacturers, has run into a pothole.

Bajaj Auto chairman Rahul Bajaj, the only one to have served as CII's president twice, has raised objections. Another prominent CII member, who happens to be the CEO of an automobile company, is said to have agree in private that there is no need for the CII auto committee.

Sources say R Seshasayee, Ashok Leyland MD and CII's vice-president, has been entrusted with the task of conveying the objections to CII president Yogi Deveshwar. Despite repeated attempts, Seshasayee could not be contacted for his comments.

'To the extent you are telling me on the formation of the auto committee, there is no need for CII to form the auto committee. (However) I have not had a chance to discuss this CII president Yogi Deveshwar or its director general N Srinivasan,' Bajaj told Business Standard.

Industry sources said CII's decision to form an automobile committee would undermine SIAM's role.

Bajaj's objections however seem to arise mainly from his perceived futility of the exercise. 'On the issue of SIAM's role being undermined by CII's automobile committee, I have been the past president of both CII and SIAM.

There is no question of SIAM's role being undermined in any manner. In fact the director general of SIAM (Dilip Chenoy) is a CII man on deputation to SIAM. There is not question of CII hurting SIAM,' he said.

Within a month of taking over as the president of CII on May 19, Deveshwar revamped the industry association's structure, adding 27 new committees including the one on automobiles.

CII insiders said the decision was taken to help the chamber focus better on the automobile industry which in the recent years has emerged as a large employment generator.