Our Bureau
New Delhi
After China gave India’s automobile manufacturing sector a scare a few months back, it has decided to open its gate for Indian manufactures. It is being reported that China has decided to allow Indian manufacturers to secure a license to access their rare earth materials.
According to reports that have come out, at least ten applications from different companies are at the China stage of approvals. People that are informed of the matter have stated that the Chinese embassy has become the main cog in securing those rare earth material’s licence from China’s Ministry of Commerce. Not only that but the Indian embassy is also working hours in facilitating the approval of licenses in Beijing, China.
Last month, the Society of Indian Automotive Manufacturers made a list of more than 30 suppliers which can apply to procure the license of the rare material. The list was made after serious consultations with India’s original equipment manufacturers. The list mostly consists of the top-tier suppliers of the country and those who are registered with the Automotive Component Manufacturers Association of India.
The list has already been submitted to the government, however no supplier’s name has been finalised as of yet. The approval, as known earlier, will depend on the supplier’s decision of abiding to the end-use clause of local, non-military operations.
The Indian Ministry of Heavy Industry has refused to pick up any calls to discuss this matter and have not commented on it as of yet. On the other hand, the Society of Indian Automotive Manufacturers have refused to intervene with the ministry looking at the sensitive nature of the situation.
China’s imposition of a stricter new end-user certification process in April that restricted the supply of rare earth materials without an import license scared most of the major manufacturers in India. This was a major step as it is a known fact that a new car can’t be built without the rare earth material. Now that they have allowed back licensing that will be a sigh of relief for them as for now.
