Thailand's goal of becoming the Detroit of Asia might be undermined after Industry Minister Kosit Panpiemras declared a change of policy yesterday. Energy-saving car projects will be driven by private auto-makers rather than the state.

The auto company offering the best benefits will the first one that the government considers for promotional privileges. If the government approves that firm's offer, other makers would be required to match the criteria if they want to invest in eco-cars here.

Kosit said not only were the best benefits required, but the manufacturer's offer must not result in any distortion of the market.

He expects to complete the criteria by March. However, he has not fixed a date because he is aware that auto-makers will not all be able to outline their plans within the same time-scale.

"The government will not focus on promoting Thailand as the Detroit of Asia, but it will let automotive manufacturers offer their investment plans and benefits that they want to go with the bidding," said Kosit.

The Board of Investment has set three principles for auto-makers wanting to invest in eco-car production in Thailand.

The first is that they have to present their business plan for the eco-car, encompassing vehicle production, engine production, and sourcing of automotive parts.

The second is that they must present their investment and production plan for the first five years. Moreover, they must produce at least 100,000 eco-cars by the fifth year.

The third is that the eco-cars they manufacture must qualify in terms of energy saving, environment and safety standards as specified by the Industry Ministry.

Earlier, some auto-makers tried to get the government to lower the excise duty for eco-car plants in the Kingdom. The former government also set up eco-car specifications and prices before providing investment privileges for them. As a result, eco-car policy could not be finalised by the government led by former prime minister Thaksin Shinawatra.

Those requests were in effect until Kosit yesterday announced the new policy direction.

In addition, the Board of Investment yesterday approved privileges for direct investment for four projects worth a combined Bt29.45 billion.

Three of the four projects involve by-products from the petrochemical industry. The fourth is a power-plant project.

The first is a joint venture between PTT and a Japanese firm, worth Bt11.84 billion. The project will produce 20,000 tonnes a year of acrylonitrile, 68,000 tonnes of acetone cyanohydrin, and 29,000 tonnes of ammonium sulphate. The project will be located at the Eastern Seaboard Industrial Estate in Rayong.

The second, owned by Bangkok Polyethylene, is for the annual production of 20,000 tonnes of high-density polyethylene, with an investment of Bt5.03 billion. The plant will be located at Map Ta Phut Industrial Estate.

The third petrochemical project - worth Bt9.85 billion - is a joint venture between PTT, PTT Chemical and Aromatics Thailand that asked for investment privileges to produce 150,000 tonnes of BisphenolA per year. This plant will also be located at the Eastern Seaboard Industrial Estate in Rayong.

The last project, owned by Rojana Power, is for co-generation between natural gas and steam to produce 77 megawatts of electricity. The investment budget is Bt2.7 billion, and the plant will be located at Rojana Industry Park in Ayutthaya.

Kosit said the Board of Investment's policy would focus on a value-creation economy by setting up a three-industry strategy for investment privileges.

They are: industrial projects that support infrastructure and innovative production; projects that involve foreign direct investment; and projects that support the service sector.

Chalida     Ekvitthayavechnukul

The Nation