Friday, March 27, 2009

Review & Restructure the AIDC

The Auto Industry Development Program (AIDP) has entered the third year of implementation. But so far it has not succeeded making any positive impact on the industry as a whole.

The Auto Industry Development Committee (AIDC) that was formed by Engineering Development Board, under directives from Ministry of Industries, Production & Special Initiatives, for effective implementation of AIDP has miserably failed to fulfill its obligations.

The AIDC had constituted Seven Sub-Committees on different components of AIDP to provide guidance/ recommendations to AIDC.

In view of the important role assigned to sub-committees, meetings of the sub-committees needed to be convened more frequently so that issues confronted to Auto Sector may be addressed more affectively. These sub-committees were supposed to meet at least once in a month or as and when needed. However, some sub-committees met just once in the last one year.

The reasons for failure of these committees as stated are; that no time frame was defined for completion of tasks as per Terms of References. Some members were chairpersons of sub-committees of AIDC and represented on other sub-committees as member as well. All Sub-Committees were to meet at least once every month but four sub-committees met only once in last seven months. Pro-active approach of chairpersons needed more but it was missing. Representation of members generally was at second tier level.

There were several approved schemes which needed consistent follow up but those were not through as yet. This included; Technology Acquisition Support Funds, for Technology Acquisition Support Scheme; Revival of Productive Assets Investment Incentive Scheme; Creation of Centre of Excellence under Auto Industry Skill Development Company (AISKDC); and Deviation from the AIDP by Government in recent budget.

This is the time to review AIDP in current international and national economic and industrial scenario and get rid of the inefficient members by restructuring the AIDC whom were failed to perform any commendable task. Instead, Govt. should invite nominations from all Chambers of Commerce & Industry and the respective Trade Bodies to recommend active and experienced people to achieve meaningful results.