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May 6, 1999

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Auto component makers seek review of Euro-2 deadline

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The Automotive Component Manufacturers Association today sought review of the Supreme Court's interim order on emission norms stating that the statutory dates for meeting Euro-I and Euro-II norms be finalised at April 1, 2000 and April 1, 2002 respectively.

Terming the pull-ahead of the statutory dates ''uncalled for'', the ACMA president Surinder Kapur said that the component manufacturers have written letters to the prime minister, cabinet secretary and industry secretary seeking immediate intervention in resolving the crisis.

''We have asked them to seek a lead time for the component-makers to meet the norms. We are willing to meet the norms but need some time to develop technology,'' Kapur said.

The judgement, he said, ''has come as a bomb all of a sudden''. ''Even if the court was planning to advance the effective dates, it can not announce these changes to be brought about overnight...We need some lead time. If this order is not reversed or changed, the component industry, particularly those manufacturing engine components, would lose a lot of business.'' However, he refused to quantify the amount of losses which the industry would incur as a result of the order.

Kapur also called for improving the fuel quality in the country stating that the move towards a cleaner environment has to be a joint initiative of the automotive industry, government and the petroleum industry. ''The refineries have to ordered to supply cleaner fuel.''

The component industry, Kapur said, has been conscious of the need to upgrade and adopt new technology to meet the Euro-I and Euro-II norms. ''We have already made investments and have been working to meet the time schedule given to it by the government of India.''

The industry, he stated, is not in a position to supply the requisite components to the vehicle industry immediately. The vehicle makers would, therefore, necessarily import components to meet the Supreme Court order. ''This will lead to a loss of business, investment and will generate unemployment, especially so, in the small scale sector.''

Meanwhile, the automobile manufacturers are meeting this month under the aegis of the Association of Indian Automobile Manufacturers to discuss the implication of a recent Supreme Court order.

According to an AIAM official, the implications of the order are being studied. ''All member-companies of the AIAM are exploring various possibilities on how to meet the emission norms or on whether to seek any exemption.''

The Supreme Court in its order had said that its directives are only an interim arrangement until further orders. It further granted liberty to the Indian government to seek variation or modification of the order.

UNI

The Supreme Court order: Auto industry in crisis

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