R&D Projects under Auto Cess Fund

Print Back
Discription View Detail Old Archives

Automotive Cess is levied and collected in terms of Notification No. S.O. 932 (E), dated 28.12.1983 of Department of Heavy Industry issued under sub section (1) of Section 9 of the ID Act; and, further, as per the Auto Cess Rules, 1984. Cess on sale of automobiles is levied @ 1/8th of one percent ad valoram. For sake of administrative convenience, this Cess is collected along with excise duty collections but is maintained by Finance Ministry in a separate Head of Account.

Annually about Rs. 25 cr. From cess fund is allocated to DHI in the Non Plan Budget which is being used to fund pre-competitive R&D projects for the benefit of the industry through a transparent process of Cess committee which is chaired by Secretary. DHI. Since 1984, till 2013-14, about 200 projects have been funded from the auto cess, with a total project cost of about Rs 410 cr.

In 2014-15, an amount of Rs 24 cr. Has been allocated from Cess fund to Deptt. of Heavy industry, out of which an amount of Rs 19.24 cr. has been

View Detail