Date:10/11/2006 URL: http://www.thehindubusinessline.com/2006/11/10/stories/2006111004650300.htm

Back ARAI to make R&D its main source of revenue

Mayur N. Shah

To invest Rs 250 cr over 5 years to upgrade infrastructure

Mumbai , Nov. 9

The Automotive Research Association of India (ARAI) has decided to make R&D in automotive technology as its main source of revenue.

It plans to invest Rs 250 crore in three to five years to upgrade its infrastructure for this purpose, said Mr Shrikant Marathe, Director, ARAI.

The testing agency that is otherwise the central agency for testing vehicles for roadworthiness aims to generate 60-65 per cent of its total revenues from R&D activities, said Mr Marathe.

Earlier, R&D contributed 40 per cent of ARAI's total revenues with the homologation-testing process generating 60 per cent of total revenues. (All vehicles have to be tested for roadworthiness (`homologated') before registration.) The testing agency posted a turnover of Rs 61 crore in the fiscal 2005-06.

Quality policy

ARAI had drafted a quality policy in November 2005 that stressed on enhancement in automotive technology and harmonisation of regulations with global regulations in the homologation process. Based on this policy, it aims to make R&D its main source of revenue.

The agency has now taken up R&D projects in technical areas such as HCCI (Homogenous Charge Compression Ignition) diesel combustion, Hydrogen and CNG fuel viability, and development of engines for meeting Euro IV and Euro V emission norms. These projects could be sold to any prospective automobile company, which is interested in using these automotive technologies.

To hire more staff

For development of these advanced technologies, ARAI will also upgrade its workforce. The testing agency has 450 employees of whom 290 are engineers. According to senior officials, 530 people will be required (including 380 engineers) over the next 5 years to meet the organisation's plans.

In order to generate more intellectual property, ARAI has tied up with Vellore Institute of Technology, which has a post-graduate course in automobile engineering. The students undergo training for one year at VIT and spend one year doing project work and studies in specialised areas at ARAI. Fifty such students trained at ARAI this year, as against 25 in the previous year. Over the next five years, ARAI plans to train 100-125 students. Some of these students will be recruited by ARAI.