Engine technology developer Orbital announced on Monday that it had granted UCAL Fuel Systems the right to manufacture and supply components of Orbital's OCPTM Direct Injection fuel system to the two-stroke motorcycle market in India, through a Technical Cooperation Agreement (TCA).

All technology transfer arrangements require the approval of the Indian government and it is anticipated that this approval will be completed within 60 days. On approval, this agreement provides Orbital with revenues generated from the transfer of intellectual property and the provision of engineering services for on-going technical support.

UCAL, based in Chennai, is a leading manufacturer of carburettors and fuel injection system components for the Indian motorcycle and automotive markets. India produced over 4.2 million motorcycles in 2002, and approximately 45% of these used traditional carburetted two-stroke engines. The Indian market is increasingly emissions conscious, with stringent emissions standards commencing in 2005 and strengthening in 2008/09. OCPTM Direct Injection is a cost effective, viable solution enabling two-stroke motorcycles to meet these new emissions requirements.

The Orbital solution also provides significant improvements in fuel economy in an expensive petrol market, greatly enhancing the acceptability of the product. The TCA fully equips UCAL to supply local motorcycle manufacturers with locally produced product.

UCAL will provide Orbital's Indian motorcycle customers the same system that is currently achieving wide acceptance in the European scooter market where three manufacturers produce six models incorporating the technology.

Synerject, Orbital's manufacturing joint venture with Siemens VDO Automotive Corporation, will supply specific components, such as the air injector, to UCAL however UCAL's low cost manufacturing base will allow a cost effective supply of Orbital technology into this very important and rapidly growing market.