ACMA, the apex body representing India’s auto component sector, has welcomed the announcement of the New Industrial Policy on October 17 by the State government of Karnataka that aims to encourage manufacturing, R&D and technology upgradation along with skilling of MSMEs (Medium & Small Scale Enterprises).

The policy will give the much-needed boost to the automotive and auto component industry in the state as well as boost investments. The industry body expressed satisfaction on the focus on infrastructure development including roads, ports and skilling centers for development of the workforce in automotive sector.

Congratulating the chief minister of Karnataka, Siddaramaiah, on launching a progressive policy, ACMA president Ramesh Suri said “The announcement of the New Industrial Policy 2014 is indeed a welcome step, especially in light of ‘Make India Campaign’ launched by the government of India. It is heartening that the policy has incorporated several of ACMA’s recommendations and recognises the automotive industry as a key manufacturing sector which needs to be strengthened across its various tiers including the MSMEs. Focus on skilling and technology up-gradation will bolster the confidence of the automotive industry in the state.”

Some of the key recommendations of the automotive industry task force of Karnataka, led by F R Singhvi, Member Executive Committee, that find mention in new policy include:

• Technology Development Fund – a longstanding demand of ACMA to boost R&D and technology development efforts by companies and institutions in India.
• Improving Mangalore Port infrastructure and connectivity by rail and roads.
• Earmarking land in new industrial areas for Common Effluent Treatment Plants (ETP).
• Encouraging and incentivising companies to give training and on-the-job training
• Online project monitoring system
• Upgrading and aligning the skilling needs as per industry requirements and in sector clusters.
• Proposal of a Research and Innovation Centre on a PPP model.

“Further, earmarking of 10 percent of land near industrial areas for promoting social and community infrastructure would ease the pressure on the State’s capital and improve employment in Tier 2 and 3 cities of the State,” concluded Mr Suri.