The new engine is supposed to be more advanced and much lighter too. The new engine was to come out in Jan - Feb '07, l am waiting for it to change my existing Scorpio which is 3 years old.

see rohit ,mahindra has recently teamed up with renault so there are big delays for some cars upgrades(includes scrpio),actually when they announced the date of jan then during that time their contract with renault is not finilised .as far as l know the new engine is lined up for launch but it might take some time (aprox 1-2 months)