EDB will function like a regulatory body?

Engineering Development Board (EDB) has reportedly decided to function like a regulatory body by putting extra financial burden on cars and motorcycle assemblers which will ultimately be passed on to consumers, well-informed sources told Business Recorder.
However, no decision has yet been taken on the applicable duration of the long awaited new Auto Policy as the industry is urging the government to formulate a long-term auto policy so that they can plan for new investment whereas the EDB is focusing on five-year policy. On the other hand Commerce Minister Engineer Khurram Dastgir wants the policy for three years.
CEO EDB conveyed to the participants that there will be one percent duty on raw material from zero percent which will increase the input cost of engineering industry, the sources added.
Presently, the EDB has no official status after the expiry of the Ordinance but the newly-appointed Chief Executive Officer (CEO) Tariq Chaudhary intends to convert a corruption-tainted organisation into a well reputed and financial independent Authority.
The CEO who is yet to face the bureaucracy in the coming budget shared his views with the auto industry at a recent meeting of Auto Industry Development Committee (AIDC) wherein a number of proposals of auto industry were cleared without any resistance.
According to sources, one of the members of AIDC urged the officials of EDB to enquire about the whereabouts of new entrants. He gave the reference of a company which started assembling Fiat cars but later on closed the factory. Venders also raised their personal issues which are not being resolved by the EDB.
According to sources, the EDB presented documents of revenue generation plans approved by the members of Board of Management (BoM) and accordingly EDB was assigned a number of SROs related to engineering industry for implementation. As per requirement of the SROs, officials of EDB have to frequently visit industries to verify their manufacturing facilities. This activity results in considerable burden on EDB's financial resources.
In order to address the situation, the plan envisages charging fee on registration of new companies, re-validation of certificates, determination of local manufacturing status and inclusion of items in CGO-11/2007, etc. The Board approved the proposal in principle and decided that the plan may also be discussed with the auto sector at AIDC and other concerned sectors before implementation.
Following revenue generation plan was presented before the BoM for approval with regard to revenue generation:
Registration fee for new company which makes passenger cars, LCV, HVs and tractors will be fixed at Rs 500,000, motorcycle/2/3/ wheelers Rs 250,000, venders Rs 100,000, new models of passage cars, LCV, HVs, tractors Rs 100,000 and new models motorcycle/2/3/ wheelers Rs 50,000.
For revalidation of passenger cars, LCFs, HVs and tractors, fee will be Rs 50,000, motorcycle 2/3/wheelers, Rs 25,000 and venders Rs 15,000.
Amendments (quota and other changes)- SRO 565(1) 2006- determination of input/out ratio will be 50,000. Determination of local manufacturing status - 1 item Rs 5,000, up to five items Rs 10,000 and above five items Rs 20,000. Fee for inclusion in the list of locally manufactured goods will be Rs 100,000. The EDB also expects 5 per cent growth in revenue per annum.