India likely to source vehicle scrappage and flex-fuel tech from Germany

On October 14, 2016, a high-powered delegation from Germany held talks with the Indian government to deepen mutual collaboration within the Indo-German Automobile Working Group.

In two separate meetings, the German delegation led by the Federal Minister of Transport and Digital Infrastructure of the Federal Republic of Germany, Alexander Dobrindt met the minister of Road Transport & Highways and Shipping Nitin Gadkari, and Union minister of Heavy Industry and Public Enterprises Anant G Geete in New Delhi.

Gadkari said India and Germany are all set to collaborate on projects for improving rail connectivity at Indian ports. He said the two countries will work together on projects worth Rs 100,000 crore being implemented by the Indian Port Rail Corporation Ltd (IPRCL).

Last-mile rail connectivity of port is key for efficient despatch of cargo from ports and will help reduce logistics cost and also traffic congestion on arterial roads.

In the transport sector, discussions were held on cooperation for developing vehicle scrapping capacity in India. India has invited Germany to share environment-friendly technology for scrappage of old vehicles and also for processing of the waste generated. 

Gadkari also informed the German minister that India has put in place all required regulations for the use of flex-fuels like ethanol mixed with petrol. He said German automobile manufacturers can be called upon to produce cars that can run on flex-fuel for India, like those being produced in Canada and the USA. 

Increasing German investment in India

In his meeting with the German delegation, Anant Geete said Germany is India’s biggest European trade partner. He also mentioned the framework MoU signed in 2015 between the Department of Heavy Industries (DHI) and Fraunhofer, Germany, which will act as the technology resource partner. Geete said the objective of this MoU is to support and augment the 'Make in India' programme through increasing the innovation and technology prowess of Indian industry. He said currently India is the safest destination for investment in the world.

Alexander Dobrindt, who expressed his satisfaction on the visible presence of German industry in India, however requested the Indian government to dispel confusion on the ban on sale and production of diesel vehicles which is hampering German industry from further investments. Geete said the ban (rescinded earlier this year) was from the Supreme Court to curb pollution. He added that DHI and other concerned ministries – the Environment & Forest Ministry and the Petroleum Ministry – are working on the issue and efforts to achieve a balanced approach are being looked into. He assured the German delegation about a viable solution and said that the country will implement Euro 6 (BS VI) emission norms for the automobile sector by 2020. Work is also in progress to ensure BS VI-compliant fuel is available.

The German delegation also enquired on the scope of enhancing further investment in automotive research, the use of electric and hybrid vehicles and the Capital Goods Policy and the probable impact of GST recently passed by the Indian Parliament. Geete assured the German delegation that any technical issue will be sorted amicably and pointed out that the FAME India Scheme for production of electric and hybrid vehicles is in place. He said small entrepreneurs from Germany can also avail of the opportunities under the Capital Goods Policy.

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