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Cummins India sees 15-20% price rise on new emissions regulations

Wed, 02/20/2013 - 17:36 -- Ruth Williams

Cummins India expects a 15-20% price rise in the cost of its genset engines once new emissions control regulations are introduced.

Cummins generatorCPCB (Central Pollution Control Board (CPCB ) II emissions control regulations apply to genset engines below 800 kVA.  CPCB II was due to be introduced in July 2013, but the CPCB is yet to notify engine manufacturers of the new standards.

Speaking to CNBC-TV18 in India, chief financial officer Rajiv Batra said: “So far the CPCB II norms have not been notified and after notification there is a cooling period, which the law stipulates as one year. But there could be a 15-20% price increase in the cost of the engine.”

The company said last year that engines would cost 10-15% higher while gensets would cost 5-7% higher (up to 800 kVA) once CPCB II is implemented.