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New Automotive policy to curb emissions & boost R&D
By TOG News Service
Feb 16, 2018

TOG News Service, NEW DELHI, FEB 16, 2018: THE Department of Heavy Industry has been working towards development of a National Automative Policy for the holistic development of the automobile sector in India. Thereafter upon conducting a series of one-to-one consultation with stakeholders in the industry, the Department released the draft Automative Policy.


For starters, the draft policy advocates adopting a long-term roadmap for emission standards beyond BSVI and harmonize the same with global standards by 2028. It also talks about rolling out CAFE norms till 2025 and beyond and setup incentives and penalties. The policy also recommended adopting a composite criterion based on length and Carbon Dioxide (CO2) emissions to classify vehicles for differential taxation purposes.

The Automative Policy further emphasized the need harmonize automotive standards over the next 5 years in line with WP-29. Also with regard to skill development and training, the Policy adovcates improving and enhancing skill development and training eco-system. The Policy also aims to increase accountability of ASDC and implement a Labor Market Information System. With regard to research & development in the automobile sector, the policy also encourages giving tax exemption on different levels of R&D expenditure with strong audit control. The Policy also recommends scaling-up of indigenous R&D with commercially viable innovations.

Moreover, turning towards Bureau of Indian Standards (BIS), the Policy sought to harmonize Automative Industry Standards (AIS) with the BIS w.r.t. safety on critical parts over next 3 years. The Policy also recommended fast-tracking the adoption of Bharat New Vehicle Safety Assessment Program. The draft Automotive Policy is available in the Department of Heavy Industry's website ( ) for information of all stakeholders and for seeking their comments by 26 th February 2018.