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Neha Kaushik

New Delhi , Dec. 23

THE Government on Tuesday said that there is unlikely to be any relaxation of homologation conditions on imported cars, but there may be simplification of procedures for these cars.

Speaking to Business Line, the Director-General of Foreign Trade (DGFT), Mr L. Mansingh, said, "A number of representations have been received on this matter, and we are looking to simplify procedures for homologating imported cars. However, there would be no relaxation of the conditions for homologation".

Mr Mansingh added that the modalities of the intended procedural simplifications are still being worked out. Homologation is the mandatory requirement for making the car road-worthy for Indian conditions.

Homologation had become a hot issue in the past few months, with recent reports suggesting that the Government is likely to relax these conditions on imported cars on receiving several representations in this regard from individuals as well as corporate houses.

The domestic industry, however, had been up in arms against the move to relax homologation conditions for imported cars, terming it as "discriminatory" for local carmakers who have invested large amounts in the country. Every model, which domestic companies manufacture or import, passes through a validation, homologation and certification process, and, hence, it would be unfair for importers of completely-built-up cars to get a relaxation, was the contention of domestic car makers.

In fact, the Society of Indian Automobile Manufacturers (SIAM) is believed to have officially intimated both the Ministry of Industry and the Ministry of Commerce that they are opposed to any relaxation in the certification process for completely imported cars.

Points out an official from an automobile company, "It is not so much a question of direct impact on the domestic auto industry, but that of providing a level playing field".

But, individuals/corporates wanting to import cars have pointed out that the entire homologation procedure for imported cars is complicated and time consuming, and since these cars have been tested abroad, there is no need to procure a road-worthiness certification from the Automotive Research Association of India (ARAI).

However, industry officials say that the procedure in India is akin to testing norms followed worldwide.

"Our procedure for validation, homologation and certification is as per international practice and takes about the same time. Worldwide every country has its own set of rules for homologation of cars. Nowhere is it harmonised. In Europe, the certificate issued by one country is not fully recognised by another. Even in developed countries, there is a local certification process, which is required. The homologation time for a model at ARAI is usually between 2 to 3 months and costs anywhere between Rs 20 lakh and Rs 50 lakh, and there is no destructive testing", Mr Ramesh Adige, President, ARAI said.

Incidentally, cars exported from India too have to get the concerned overseas homologation certificate.

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