Govt Launches Automated Online Data Transfer To Monitor PLI Scheme For Auto

Ministry of Heavy Industries has launched Automated Online Data Transfer for capturing critical data related to Domestic Value Addition (DVA) from the PLI applicant’s Enterprise Resource Planning (ERP) 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 applicant’s existing ERP system to PLI Auto portal of MHI in 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 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 on the one hand and it will enable faster processing of claim on the other hand.

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. He also stated that Prime Minister Narendra Modi’s Make in India and Atma Nirbhar Bharat campaign will get a major boost by this system.

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 INR 25,938 crore. The Scheme has been successful in attracting proposed investment of INR 67,690 crore against the target estimate of investment INR 42,500 crore over a period of five years. The scheme shall bring in incremental production of AAT products of over INR 2.3 lakh crore.

The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination which resonates strongly with Prime Minister’s clarion call of AtmaNirbharBharat - a self-reliant India.

Salient Features Of Automated Online Domestic Value Addition

Applicants would be maintaining the detailed DVA calculation for all their eligible products in their own Enterprise Resource Planning (ERP) system. The ERP system shall maintain the DVA calculation for each batch or product or model or variant with details of component-wise values, component-wise DVA and final DVA at AAT product level.

Applicants’ ERP shall push the product-wise DVA to PLI Auto portal on quarterly basis through Application Programming Interface (API).An API is a set of rules that lets different programs communicate to each other, exposing data and functionality across the Internet in a consistent format. This is an architectural pattern that describes how distributed systems can expose a consistent interface in secure cyber environment.

The Applicants’ ERP would only push product-wise DVA to PLI Auto portal. The detailed calculation of DVA for each product shall be maintained in the ERP of the Applicant only so that their trade secrets or confidentiality/Non-disclosure agreements with suppliers or customers are not violated.

Applicants would be required to maintain the Quarterly DVA calculation in their ERP system with necessary audit trails at least till 31/03/2030 (i.e. two years from closure of the Scheme) or as may be advised by MHI. Further, Applicants shall be permitted to delete/ destroy the DVA data from their ERP portal only with prior permission from MHI.

This system of automaticity and paperless workingshall be continued over the period of 5 years under the Scheme i.e. from FY2022-23 to FY2026-27.

The above system/ protocol has been devised after exhaustive consultation with leading OEMs and Component companies for last more than four months.