The Cabinet Committee on Economic Affairs (CCEA) today approved the implementation of National Automotive Testing and R&D Infrastructure Project (NATRIP) in the country with a total investment of Rs. 1718 crore.

NATRIP envisages setting up of world-class automotive testing and homologation facilities in two phases of three years each, from the date of its launch. The project principally aims at :

(i) Creating critically needed automotive testing infrastructure to enable the Government in ushering in global vehicular safety, emission and performance standards,

(ii) Deepening manufacturing in India, promoting larger value addition leading to significant enhancement of employment potential and facilitating convergence of India’s strengths in IT and electronics with automotive engineering,

(iii) Enhancing India’s abysmally low global outreach in this sector by de-bottlenecking exports and

(iv) Removing the crippling absence of basic product testing, validation and development, Infrastructure for automotive industry.


The project envisages setting up of the following facilities :

A full-fledged testing and homologation center within the northern hub of automotive industry at Manesar in the State of Haryana.

The investment of Rs.1, 718 crore is proposed to be funded jointly by the Government and the Industry, based on recommendations of the Expenditure Finance Committee, in the following manner :

A. Plan Support by the Government

B. By way of grant : Rs. 817 crore
By way of loan : Rs. 273 crore B. Contriution from automotive Cess (collected from the auto industry) : Rs. 510 crore

C. User Charges to be paid by auto industry : Rs. 118 crore
Total Project Cost (A+B+C) : Rs. 1718 crore

NATRIP is aimed at addressing one of the most significant constraints of Indian automotive sector and is, therefore, likely to provide a major impetus to manufacturing in India, significantly unlocking employment potential in this sector. Some of the key benefits expected from the project, inter-alia, would be :-

a. availability of world class infrastructure to test vehicles and components against existing and emerging automotive standards expected to become mandatory till 2015, to significantly enhance vehicular safety, emissions and performance.

b. Bolstering efforts of the Government to usher in global vehicular safety, emission and performance standards in India leading to modernization of industry.

c. Convergence of India’s strengths in Information Technology and electronics with automotive engineering, to expand India’s global presence in this key sector.

d. Deepening of automotive manufacturing in India, promoting larger value addition and thereby significantly enhancing employment generation in this sector.

e. Enhancement of India’s abysmally low global outreach in this sector by de-bottlenecking exports and making them more competitive.

f. Facilitation and promotion of larger R&D efforts within India by not only Indian automotive industry but also by global automobile and component manufacturers who are expected to take advantage of this pre-competitive R&D infrastructure.

g. Significant enhancement in current fiscal contribution of this sector to the general exchequer.

h. Bringing about large savings out of annual outflow of around Rs. 180 crore being currently spent to test the exportable vehicles at overseas facilities.

i. Significant contribution towards the cause of India’s emergence as a global outsourcing base for automobiles and auto components in furtherance of Auto Policy.