The Union Ministry of Heavy Industries has launched ‘Automated Online Data Transfer’ to capture Domestic Value Addition (DVA) related critical data from the approved applicants of the Production Linked Incentive (PLI) scheme for the makers of automobile and auto components.
The initiative by the Centre is aimed at promoting ease of doing business for the auto sector.
Under the newly implemented system, the PLI auto portal will receive critical data from PLI applicants Enterprise Resource Planning (ERP) system. All PLI Scheme authorised applicants have their own ERP system, a type of software used by organizations to manage their business operations.
The IT-enabled system has been developed to provide for unhindered data transfer from the existing ERP system of the applicant to the PLI auto portal of the Heavy Industries Ministry in a secure environment.
The integration of Application Programming Interface (API) with the ERP system of the applicant will make this scheme more automatic and paperless.
This new facility uses automation to get rid of the copious paperwork, otherwise the applicants would have been required to file large claims.
“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,” the Ministry of Heavy Industries said in an official statement.
It also said that this system was developed after extensive deliberations with stakeholders including leading original equipment manufacturers (OEMs) and auto component manufacturers.
Sharing his views on the initiative, Dr Mahendra Nath Pandey, Union Heavy Industries Minister, stated that these processes are crucial steps in enabling transparency, ease of doing business, faceless and self-certification-based assessment, and paperless delivery.
As per reports, with a budgetary outlay of INR 25,938 Cr, the government has approved the PLI Scheme for Automobile and Auto Component Industry in India (PLI-Auto) to improve India’s manufacturing capabilities for Advanced Automotive Products (AAP).
In contrast to the projected estimate of investment of INR 42,500 Cr, over a period of five years, the initiative has been successful in generating a proposed investment of INR 67,690 Cr. Moreover, the scheme is expected to bring in incremental production of Advanced Automotive Technology (AAT) products worth over INR 2.3 Lakh Cr.
There are various financial incentives that have been suggested as part of the PLI-Auto Scheme to increase the domestic industry of AAT products and attract investment into the value chain of automotive manufacturing.
Reportedly, PLI investors would keep their own ERP system updated with the comprehensive DVA calculations for all of their qualifying items.
AAT products having achieved a minimum 50 per cent Domestic Value Addition (DVA) are eligible to be incentivised under the PLI auto scheme. With a view to reduce imports, enable deep localisation for AAT products in India and enable domestic automotive industry to become an important player in global supply chain, only the pre-approved eligible product with minimum 50 per cent domestic value addition will be eligible for incentives under this scheme.
FY23 is the first such financial year for which an approved applicant can claim an incentive on the determined sales. The sales of AAT products with a minimum 50 per cent DVA shall be eligible for incentive for a period of five years from 01/04/2022 onwards.
The whole working and processing system in PLI auto is based on mutual trust. While initially whatever the beneficiary files will be believed and accepted by the Ministry, however, any complaints on this behalf will permit them to locate a digital footprint for verification.