A recent report from the United Nations Industrial Development Organisation (UNIDO) forecasts that the world's manufacturing output growth will be slower compared to the last year. As per the report, the developing countries have maintained high growth rates of manufacturing with production increasing by 11.1 percent. For 2011, the  MVA growth of industrialised countries is likely to be around 3.2 percent, whereas that of developing countries is expected to grow by 8.4 per cent in 2011.Clearly, India and China are where the action is.

As for the 'engines' of growth, the Bharat Stage IV norms are already in effect for automobiles and the BS III now in effect for most other segments except gensets, in all, a major initiative to bring down the carbon footprint. As per inputs from IDEMA the annual sales by its members of non road use engines in the fiscal year ending March 31, 2010 exceeded 550,000 units, with exports growing at a rapid pace.The Indian diesel engine industry is estimated to be more than $23 billion, even if we exclude the captive engine manufacturing of automotive companies. Studies show that at present diesel engines (as per 2010 figures) in India emit a total of 357,959 tonne of pollution.If we were to use diesel engines with lower emissions, then this figure would be reduced to 116,325 tonne. Couple this with the fact that there are over 400,000 diesel-powered vehicles being produced every year and 250,000 diesel powered gensets; this is again as per 2010 figures which might have gone up to 20 percent and 15 per cent, respectively.

One of the challenges faced by the manufacturers of diesel engines today is to develop products that will deliver higher performance, longer life, lower operating costs and at the same time have less of an environmental impact. To comply with these standards, engine manufacturers have invested in the research and development of new, cutting edge technologies aimed at taking diesel emissions levels to near zero. It's heartening to note that JCB has already launched ecoMAX  customised for Indian conditions and emission norms; Mahindra Navistar Engines will introduce the 4 cylinder engine to the Indian market for various genset and construction equipment; Cooper has moved up the value chain through a logical diversification in the engine and automotive manufacturing business and has launched a multipurpose, flexi fuel twin-cylinder engine, for which commercial production has already begun.

But on the flipside, the rising input cost and the lack of clear cut road map for clean fuel are major deterrents. Another major challenge is to bring down the technology gap between the organised and unorganised segments. Ironically, while every other sector has been moving towards reducing emissions caused by engines, the genset industry has been largely inactive. There was even a move to extend the deadline for introducing the new norms for gensets. Thanks to the tireless efforts from some of the principled manufacturers, the deadline of 1October 2013 stays effective and not only that, most of the manufacturers have already geared up for these new norms; some of them have already introduced their lower emission diesel engines to the market in a small way.

The point is, the unorganised sector neither has the resources nor the technology to develop such engines. Concerted efforts from the Central Pollution Control Board (CPCB), Delhi and the Association of Diesel Engine Manufacturers Association (IDEMA), and unorganised segments could dramatically reduce the technology gap, thereby reducing emissions from diesel engines. With this in place, we could look forward to a cleaner and greener industry.

EXCON 2011 is scheduled from 23-27 November in Bengaluru. More than a hundred products will be launched and more than 600 companies will participate in the event, which is expected to draw over 34,000 visitors. India could emerge as a major outsourcing base of components for international companies in the construction field. See you at EXCON at our stall number 668.