NITI Aayog mandating European standards for ropeways will make this mode of movement costlier, an industry association has said.
Use of European standards — CEN — will make the equipment costlier by five times against Indian grade products, the Ropeway Association of India has conveyed to NITI Aayog.
NITI Aayog had invited comments from stakeholders on a model concession agreement for ropeways.
Some 65 passenger ropeways are operational across the country, primarily in hilly areas. Most are Made in India, to norms set by the Bureau of Indian Standards (BIS).
The Association said the NITI Aayog model contract document suggests that India-made ropeways are not as safe as their European counterparts. But this is not true, said Association president Apurv Jhawar.
Many manufacturers say they use the latest technology in their equipment conforming to BIS specifications and additionally follow European norms on passenger safety
“There are four-five major domestic manufacturers. They own the technology and do not pay any royalty to any foreign manufacturer,” Jhawar told BusinessLine.
These manufacturers will have to import if CEN standards are mandated. This will make projects unviable as the equipment price will go up due to the 28-30 per cent import duty, the transportation cost and the payment in foreign exchange.
The Association said that instead NITI Aayog can ask the BIS to upgrade to the latest global practices. The R&D effort of domestic manufacturers could also be subsidised.
Jhawar said the decision on the use of Indian or imported equipment is best left to the developer, who will base it on factors such as climatic conditions and project feasibility.
The model concession agreement is under discussion.