Govt launches automated online data transfer to monitor PLI scheme for auto

Aug 11, 2022

New Delhi [India], August 11 : The Ministry of Heavy Industries on Thursday launched automated online data transfer for capturing critical data related to domestic value addition in the Production Linked Incentive (PLI) scheme for the auto sector.
The new system will capture data from PLI applicant's ERP (Enterprise Resource Planning) system to PLI auto portal.
All approved applicants of the PLI Scheme have their own ERP system. ERP is a type of software that organisations use to manage business activities. The IT-enabled system has been devised to enable smooth transfer of data from the applicant's existing ERP system to PLI Auto portal of MHI in a safe environment.
The Application Programming Interface (API) will get embedded with ERP system of the applicant and will enable automaticity and paperless processing in this scheme. In normal circumstances, the applicants would have been required to file voluminous claims. This facility eliminates that voluminous paperwork by bringing in automation. Thus, this IT-enabled system will reduce the compliance burden on the part of the applicants on the one hand and it will enable faster processing of claim on the other hand, according to an official statement released by the Ministry of Heavy Industries.
This system has been devised after exhaustive stakeholder consultations with leading OEMs and Auto component manufacturing companies, the ministry said.
Speaking on the occasion Union Heavy Industries Minister Mahendra Nath Pandey said that these processes are important steps in enabling transparency, ease of doing business, faceless and self-certification-based assessment and paperless delivery.
The government has approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto) for enhancing India's manufacturing capabilities for Advanced Automotive Products (AAP) with a budgetary outlay of Rs 25,938 crore. The scheme has been successful in attracting proposed investment of Rs 67,690 crore against the target estimate of investment Rs 42,500 crore over a period of five years. The scheme shall bring in incremental production of AAT products of over Rs 2.3 lakh crore.
The PLI-Auto Scheme proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.
The scheme incentivizes only those eligible AAT products for which minimum 50 per cent Domestic Value Addition (DVA) is achieved. Pre-approved eligible product with minimum 50 per cent domestic value addition will be eligible for incentive under this scheme. This criterion shall reduce imports from outside India, enable deep localization for AAT productsin India and enable Indian Automotive Industry to important player of global supply chain.
Financial Year 2022-23 is the first financial year for which an approved applicant can claim incentive on the determined sales. Sales of AAT products with DVA of minimum 50 per cent, with sales from 01/04/2022 onwards, for a period of 5 years, shall be eligible for incentive.
The entire system of working and processing in PLI auto is based on mutual trust. Whatever is filed by the beneficiary will be believed and accepted by MHI. However, on any complaint, this will permit MHI to locate digital footprint for verification.