In a bid to make the PLI scheme more transparent and facilitate ease of doing buisness and ensure paperless disbursement, the Ministry of Heavy Industries launched the automated online data transfer for capturing data related to Domestic Value Addition (DVA) from the PLI applicant’s ERP (Enterprise Resource Planning ) system to PLI Auto Portal.
All approved applicants of the PLI Scheme have their own ERP system. The Ministry says that this IT-enabled system has been devised to enable smooth transfer of data from applicant’s existing ERP system to PLI Auto portal of the Ministry.
In the normal circumstance, the applicants would have been required to file voluminous claims. This facility eliminates that voluminous paper work by bringing in automation. Thus, this IT-enabled system will reduce compliance burden on the part of the applicants and it will enable faster processing of claim on the other hand.
This system has been devised after exhaustive stakeholder consultations with leading OEMs and Auto component manufacturing companies.
Speaking on the occasion Union Heavy Industries Minister Dr 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.
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 (AAT) 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 incentivises only those eligible AAT products for which minimum 50% Domestic Value Addition (DVA) is achieved. Pre-approved eligible product with minimum 50 percent domestic value addition will be eligible for incentive under this scheme. This criterion is envisaged to bring down imports to India, enable deep localisation for AAT productsin India and enable Indian Automotive Industry to important player of global supply chain.
FY2023 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 percent, with sales from April 1,2022 onwards, for a period of 5 years, shall be eligible for incentive.