The Union ministry for heavy industries has asked states to set up a single-window clearance system for the automotive sector for
putting upcoming manufacturing projects on the fast track.

The idea is to offer manufacturers all local clearances such as factory licenses, land allotment, environmental certifications, and power supply at a single facility, according to Surjit Mitra, additional secretary, ministry of heavy industries and public enterprises.

He said the absence of a single window system was one of the main reasons why India was unable to fully utilise the twin advantage of possessing one of the largest pools of talented scientists, engineers and technicians in the world at extremely competitive costs.

Currently, the automobile industry in India is concentrated around manufacturing hubs like Manesar in Gurgaon, Pune and Chennai. “We are giving a special thrust to last mile connectivity between ports and auto hubs and creation of specialised port infrastructure for handling vehicle exports. Ports like Chennai and Mumbai have already improved their connectivity and are able to handle more automobile exports, “ said Mr Mitra.

The attempts by heavy industry ministry to speed up the setting up of single window clearance at state level comes at a time when the automobile industry in India is emerging out of the slowdown blues. On a sequential basis there has been a marked up-tick in the primary dispatches by the major auto players since the beginning of the year. Passenger cars and two-wheelers are two segments that have seen a revival in demand of late.

The Indian auto market grew 0.7% to 97.2 lakh units in FY 09 with the government’s stimulus package helping to revive demand. The government had cut excise duty by 4% on all vehicles and reduced excise duty to 8% from 10% on commercial vehicles and auto parts.

http://economictimes.indiatimes.com/News/Economy/Govt-proposes-single-window-clearance-for-automakers/articleshow/4427692.cms