MINUTES OF THE SIXTH MEETING OF THE CESS COMMITTEE HELD ON 20^TH SEPTEMBER, 2005 UNDER THE CHAIRMANSHIP OF SECRETARY (HI&PE), UDYOG BHAVAN, NEW DELHI.

1. The sixth meeting of the Cess Committee was held on 20^th September, 2005 under the Chairmanship of Secretary (HI&PE) at Udyog Bhawan, New Delhi. A list of participants in the meeting is enclosed.

2. Giving a broad overview of the R&D projects which come under the purview of the Cess Committee, Secretary (HI&PE) underlined the need for discipline in the reporting of progress and utilization in respect of the various sanctioned projects. He further stated that the FRBM Act emphasized quarterly monitoring and imposes restraint on the release of funds unless utilization certificates are submitted within the stipulated period. Secretary directed that all the implementing agencies should send the utilization certificates which are due immediately and ensure that the progress reports are sent in time in the prescribed format with all the details. He further added that parking of funds would be adversely viewed.

3. Joint Secretary introduced the agenda items. He stated that the Cess Committee till date had sanctioned 124 projects, out of which 81 have been completed and 43 were on-going. He mentioned that Cess Fund availability would decline in the coming years as a substantial part of the Cess would be used for implementing the NATRIP Project. He also clarified that no funds in future would be released unless the backlog of UCs is cleared by respective implementing agencies. He mentioned that in order to have a detailed examination of the proposals, a Screening Committee has been constituted which shortlists appropriate projects for consideration by the Cess Committee. The criteria which were applied by the last Screening Committee to finalise the shortlist were, funding of continuing schemes and consideration of those new projects which did not duplicate the mandate of NATRIP. Accordingly, only 9 projects were recommended.

4. In view of the stringent instructions from the Ministry of Finance and the limited availability of the Cess fund, JS highlighted that 11 outstanding utilization certificates mentioned in the annexure of the Agenda Notes find a mention in the CAG report and have also not been accepted by the Pay & Accounts Office of the Ministry. Dr. Mitra stated that if the utilization certificate are not received within the prescribed 12 months period the matter would be viewed seriously by the Ministry and wanted that the utilization certificates in the prescribed revised format should be furnished within a month’s time by the respective institutions failing which no further release of fund to these institutions would be made.

5. While reviewing the progress made, Joint Secretary expressed dissatisfaction over the non-furnishing of the Quarterly Progress Report (QPR) by the Institutes implementing the projects. He stated that only ARAI has submitted the last QPR but the report submitted by the ARAI is lacking in the specific details of the project implementation. He stated that the project executing agencies should desist from using vague terms in the QPR and there has to be a proper quantification of the progress achieved in the implementation of the projects. He further stated that large numbers of sanctions are lying idle with the Institutes and some of the Institutes are earning interest which is not a healthy practice and cannot be permitted. He also indicated that all the projects sanctioned from the Cess fund are time bound and the Institutes have to strictly adhere to the time limits. He expressed unhappiness of the Ministry over the time over run in respect of a number of sanctioned projects.

6. Thereafter, the new project proposals received from ARAI, VRDE, FCRI, TIFAC, SIAM, CIRT and TMA were taken up for discussion. The projects were screened in a meeting taken by the Joint Secretary with the representatives of the Institutes and 9 projects were short listed for consideration of the Cess Committee. The projects were taken up one by one and the decision taken up in respect of each of the projects is as below:-

Projects from ARAI

1. Certification Test facility for electric vehicles and their sub systems as per AIS 38, 39, 40, 41, 48 and 39 at a cost of Rs. 100 lakhs.

The Cess Committee approved the project. It, however, observed that the project will have to be completed within a year.

2. Consideration of request of ARAI, Pune to approve the cost of the remaining part of the project i.e. “Replacement of Emission equipment” at a total cost of Rs. 400 lakh and release of balance amount of Rs. 200 lakh towards this project.

The Cess Committee agreed to the release the balance amount of Rs. 200 lakhs for the project but did not agree to the request of ARAI to meet the additional customs duty liability and observed that the ARAI should meet the same from its own resources.

Project from VRDE

3. Up gradation of Photometry Lab. (Phase – II) at a cost of Rs. 125 lakhs.

Keeping in view that the project is aimed at meeting the latest standards, it was approved by the Cess Committee.

Project from FCRI.

4. Test facility for flow testing of CNG fill system & its components at a cost of Rs. 300 lakhs.

Keeping in view the increasing use of CNG as an automotive fuel, the emerging need for testing of the CNG dispensing stations and the economics of the project, it was approved by the Cess Committee.

Project from TIFAC.

5. Vehicle tracking and control system at Koyambedu Bus Terminus at Chennai.

It was observed that the project is aimed at developing the partnerships and developing telematics standards which would be useful for wider application of telematics in the transportation sector. As the project was recommended and would be implemented through TIFAC and telematics being an emerging area to provide potentials for growth for the automotive sector, the Cess Committee approved the project.

Project form SIAM.

6. Study on recycling of automobiles.

The project was approved and it was agreed that out of the total cost Rs. 15.50 lakhs would be provided out of the Cess funds.

Projects from CIRT

7. Establishment of test facility for measurement of radial growth of tyres in dynamic condition.

8. Establishment of Tyre Noise Measurement System as per SAE J 1060 & JASCO C – 606.

9. Establishment of Tyre Uniformity testing facility for testing Truck and Bus radial tyres for measuring its non-uniformities as per AIS-044 (Pt.1).

As there was no representative of CIRT in the Screening Committee meeting, it was decided that all the three projects should be considered by the Screening Committee first before they are put up to the Cess Committee for its consideration.

8. SIAM pointed out that a proposal was submitted by SIAM on ICAP project, which is being coordinated by the Ministry of Environment & Forests, the Cess Committee should fund it. Chairman suggested that this project could be considered by the Screening Committee before it is brought before the next Cess Committee meeting.

9. There being no other agenda item, the meeting ended with a vote of thanks to the chair.

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