According to the proposal of the directorate-general of foreign trade to the ministry of road transport and highways, individuals importing cars no longer need to possess safety and road-worthiness clearances.
All imported cars now have to undergo homologation tests at the Pune testing facility of the Automobile Research Association of India (ARAI).
Ministry officials told Business Standard that ARAI was overburdened and importers had to wait for long. They further said during the tests, all the spares were tested and engines opened up, which often created problems.
"If it's a company importing some vehicles, a car can be used as a sample. But it is not the case with individuals," said an official.
Officials also said there was a proposal to open more centres in the country to help facilitate testing while ensuring safety standards were adhered to.
Although the revenue department has been sensitised about the proposal, commerce ministry officials said the decision was dependent on a clearance from the ministry of road transport and highways.
The Commerce Ministry officials added that the ban on import of second hand and left-hand drive cars will continue.
While left-hand drive cars are banned for safety reasons, second hand vehicles are not permitted to protect car manufacturers in India. They ruled out any possibility of reduction in import duty.
They said the proposal to ease restrictions will not affect car manufacturers though there was a steep climb in the volume of imports.
During 2002-03 automobile imports registered Rs 321.52 crore from a 269.77 per cent increase of Rs 86.96 crore during 2001-02.
