Pandey expects Rs.2.3 lakh crore production of AAT products over five years
The Government’s Production Linked Incentive (PLI) Scheme for enhancing India’s manufacturing capabilities for Advanced Automotive Products (AAT) has been successful in attracting proposed investment of Rs.67,690 crore against the target estimate of Rs.42,500 crore over a period of five years.
Giving this update on 11 Aug 2022, Heavy Industries Minister Dr. Mahendra Nath Pandey expects the Rs.25,938 crore PLI-Auto (for Automobile and Auto Component Industry) to generate Rs.2.3 lakh crore production of AAT products.
“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination,” he said.
The PLI-Auto Scheme is proposed to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain.
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.
This criterion shall reduce imports from outside India, enable deep localization for AAT products in India and enable Indian Automotive Industry to important player of global supply chain.
FY 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%, 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 Ministry of Heavy Industry (MHI). However, on any complaint, this will permit MHI to locate digital footprint for verification.
Meanwhile, the Ministry has launched on 11 Aug 2022 the Automated Online Data Transfer for capturing critical 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, 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.
This system has been devised after exhaustive stakeholder consultations with leading OEMs and Auto component manufacturing companies.
Speaking on the occasion. Minister Pandey said that these processes are important steps in enabling transparency, ease of doing business, faceless and self-certification-based assessment and paperless delivery. fiinews.com
