The Ministry of Heavy Industries has urged the Finance Ministry to waive the Special Excise Duty (SED) of Rs 15,000 and Rs 20,000 on 1500cc and 2000cc cars respectively, said Mr Ambuj Sharma, Joint Secretary, Ministry of Heavy Industries.

The SED was levied by the Finance Ministry on fuel guzzling cars to contain carbon emissions.

Inaugurating the National Summit on Public Buying organised by Assocham, Mr Sharma said, The Ministry of Heavy Industries had last year too lobbied for withdrawal of SEDs, but the request was turned down by the Finance Ministry. We are again pressurising the Finance Ministry to waive it off.

Mr Sharma said the Ministry of Heavy Industries is setting up seven auto testing centres to make India a hub for testing cars before they are out on roads. In these auto testing centres, car manufacturers from Indonesia, Malaysia and Thailand would be allowed to test their products as part of the Governments attempt to invite more foreign direct investment in the automobile sector, he added.

India is setting up the centres with Government aided funds of Rs 1,800 crore. The centres would become operational by September 2011 in Manesar, Pune, Ahmednagar and Raebareli.