PSU Connect

Ministry of Heavy Industries takes lead in enabling transparency, ease of doing business

New Delhi: Ministry of Heavy Industries has launched on Thursday 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. 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.

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. He also stated that hon’ble 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 ?25,938 crore. The Scheme has been successful in attracting proposed investment of ?67,690 crore against the target estimate of investment ?42,500 crore over a period of five years. The scheme shall bring in incremental production of AAT products of over ?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 Hon’ble Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India.

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 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 productsin 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 MHI. However, on any complaint, this will permit MHI to locate digital footprint for verification.

Salient features of the Automated Online Domestic Value Addition (DVA) Capturing Process:

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/ product/ model/ 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.

For accessing the API, Applicants’ ERP would have to authenticate itself by accessing the link and then submit the DVA data by accessing

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.

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