Government to allow all-terrain vehicles to be made locally .

NEW DELHI: The highways ministry is set to give the go-ahead to manufacture in India all-terrain vehicles (ATVs), which are used primarily in adventure sports and for border security in difficult terrains.

Highways minister Oscar Fernandes has approved the proposal outlining the emissions and safety norms for producing this new class of vehicles in the country, officials said. The ministry will now seek views of various stakeholders, they said.

Leading automakers such as Honda, Suzuki and Yamaha manufacture and sell ATVs in global markets, but are yet to introduce them in India. However, US-based Polaris, which imports and sells its ATVs in India, and Japanese automaker Honda are believed to be considering manufacturing ATVs in India soon.

ATVs are currently either imported or assembled in India and an import duty of at least 100% is levied on them. Their current prices of Rs 7-30 lakh are expected to come down significantly after they are manufactured locally.

"ATVs are basically petrol-based mini-tractor style vehicles which make it easy to travel on undulating planes, but these are not good in terms of fuel efficiency and emissions. This is why we need to come up with emission standards before they can be manufactured in India," said an official aware of the development, adding that Polaris expects significant demand from paramilitary forces like the BSF for using ATVs in border areas of Gujarat and Rajasthan besides a niche segment of individual buyers.

In response to ET's queries on the subject, Polaris India's managing director Pankaj Dubey said the company wished to gain the first-mover advantage and cater to the unexplored off-road vehicles market in India.

"India is a booming market. The concept of off-road vehicles is gaining prominence in the country. Currently we have buyers who fall in class that has top-level luxury cars. However, with the implementation of the new policy, we will be able to reach out to and serve more people," said Dubey. On queries about tie-ups with paramilitary forces like the BSF, Dubey said, "We have a confidentiality agreement with them."

Polaris has already bagged its first commercial order in India from the Gujarat Police and has also received orders from the Coastal Police. The company can also plan to cater to the emergency services in India by producing off-road ambulances, which can be used in dangerous terrains and narrow strips.

The BSF, in July 2012, reportedly conducted field trials of ATVs with the aim of phasing out camels with sand scooters - a variant of the ATV - and was expected to send its recommendations to the Centre for acquiring these vehicles. "We have procured four ATVs for use in certain areas of Gujarat that are marshy or slushy since they are particularly good for navigating these kinds of areas. We do not have any tenders for procuring ATVs at the moment," said a BSF official, requesting anonymity.

Source : economictimes.indiatimes.com