KEL chairman and managing director Arun Firodia told press persons here on the occasion of the launch of the Kinetic K4-100 bike and Safari V2 60 cc bike in Tamil Nadu that he was `disappointed' by the union budget which did not provide any concessions for the `people's car'.

Apparently KEL was pitching for reduction of excise duty on automobile sector from 40 per cent to 15 per cent and other duty concessions from state governments as the car would be meeting emission norms of year 2,000.KEL had planned to produce 2,000 cars in the first year and step it up to 10,000 cars in the second year.

The company had proposals to import engines for the first year and get the technology for the engines from the American company Briggs & Stratten so as to keep costs of the car down within a manageablelevel. The engines will have a 500 cc capacity and if the concessions sought comes about production will commence by end of the year.

However, Firodia was clear that the company was `waiting for a change of heart' from the government to `productionise' the car. He said without the concessions which KEL was seeking the cost of the car will go up to Rs 1.5 or Rs 1.6 lakh.

``Our intention is not to be in competition with the Maruti but to create a new market,'' Firodia said and added that without the concessions in excise duty the company will be forced to look to export markets to sell the car.The people's car by KEL was named `City' originally but Honda Siel objected to the name as their car was known worldwide as City.

Firodia said Kinetic Engineering has not given any name to the small car yet and will do it later after getting the concessions from the government.

Kinetic may set up facility in Tamil Nadu

Kinetic Engineering, which launched its new and first indigenously developedfour-stroke fuel-efficient bike in the country, is eyeing Tamil Nadu to set up part of its manufacturing base.

According to KEL chairman and managing director Arun Firodia, the company feels it can avail substantial tax concessions if it starts manufacturing here.

"We could start with welding, painting and assembly for the new Kinetic bike K4-100 and Safari V2, both of which have been developed especially with the Tamil Nadu customer in mind.

Starting an operational base in Tamil Nadu for these activities will, he said, entail an investment of Rs 5 crore to Rs 10 crore. However, Firodia confirmed that a final decision on setting up base in Tamil Nadu will be taken in the next three months.

Meanwhile, KEL joint managing director Sulajja Firodia Motwani said so far the company has sold 15,000 K4-100 bikes last year mostly in Maharashtra. The company is planning to increase sales by additional 15,000 bikes in Maharsahtra, Madhya Pradesh, Gujarat, north India and by focussing in Tamil Nadu.

Along withintroduction of K4-100 bike which is priced reasonably at Rs 29,390 KEL will also be selling its newly launched 60 cc bike Safari V2, both of which are specially designed to suit the south Indian markets. This rugged moped will be featured soon in the advertising campaign also.

The company Motwani disclosed also plans to introduce two-stroke Safari V2 geared models to enhance mileage; two new Luna models this year and in the next two years 100/50 cc four-stroke motor cycles. The K4-100 is said to give a mileage of 87 kmpl with 4-foot gears and wide tyres.