Satellite Growth

ing policy with regard to the automo IDCs as Tyre-Makers bile ancillaries industry. Till recently, ABOUT two years back there was a spate of automobile tyre licensing. At that time clear criteria were laid down (though not necessarily observed) for the issue of tyre licences. These licences are at various stages of implementation. As a result, total capacity of the tyre industry is now placed at 5.58 mn tyres (3.34 mn existing, 1.54 mn licensed and 0.7 mn in respect of which letters of intent have been issued; projects in the latter two categories are at various stages of implementation). The tyre situation has improved markedly in recent months. For one thing, barring sporadic strikes, all tyremaking units are now in operation. Secondly, the demand for truck tyres is low, thanks to Premier Automobiles and Hindustan Motors being unable to sell their trucks. Also, tractor output is not expanding, and the increasing demand for them is being met at present from imports. Scooters are in the same position in regard to domestic production, though in this instance there are no imports. Thus with the already licensed tyre projects making rapid progress, tyre supply should not be an immediate problem in the near future.