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MHI launched Automated Online Data Transfer for Capturing Critical Data of auto PLI Applicants

The Ministry of Heavy Industries (MHI) launched automated online data transfer for capturing critical data related to Domestic Value Addition(DVA) 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.

What is ERP?

All approved applicants of the PLI Scheme have their own IT (Information technology)-enabled ERP system. It is a type of software that organizations use to manage business activities. It enables smooth transfer of data from the applicant’s existing ERP system to PLI Auto portal of MHI.

  • There is Application Programming Interface (API) in the ERP system of the applicant which enables automaticity and paperless processing in this scheme.
  • This system of automaticity and paperless working should be continued over the period of 5 years under the Scheme i.e. from FY23 to FY27.

About PLI-Auto:

In September 2021, the Central Government has approved 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 will bring in incremental production of Advanced Automotive Technology (AAT) products of over Rs 2.3 lakh crore.

Key Points:

i.It proposes financial incentives to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain.

ii.The scheme incentivizes only those eligible AAT products for which minimum 50% Domestic Value Addition (DVA) is achieved.

  • Pre-approved eligible product with minimum 50% domestic value addition will be eligible for incentive under this scheme.

iii.FY23 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%, with sales from April 1, 2022 onwards, for a period of 5 years, are eligible for incentive.

iv.Applicants are required to maintain the Quarterly DVA calculation in their ERP system with necessary audit trails at least till March 31, 2030.

Recent Related News:

i.The Ministry of Heavy Industries (MHI) and Ministry of Skill Development and Entrepreneurship (MSDE) signed a Memorandum of Understanding (MoU) to create a collaborative ecosystem to offer skill development training in the capital goods sector.

ii.On 29th July 2022 Reliance New Energy Limited, Ola Electric Mobility and Rajesh Exports, Indian Multinational Gold Retailer signed the program agreement under PLI scheme to build a total of 50 gigawatt hours (Gwh) Advanced Chemistry Cell (ACC) battery storage.

About Ministry of Heavy Industries (MHI):

Union Minister-  Dr. Mahendra Nath Pandey (Constituency- Chandauli, Uttar Pradesh )
Minister of State (MoS)- Krishan Pal Gurjar (Constituency- Faridabad, Haryana )





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