The Ministry of Heavy Industries (MHI) launched an Automated Online Data Transfer system to collect critical domestic value addition (DVA) data from a Production Linked Incentive scheme (PLI) applicant’s enterprise resource planning (ERP) system.
The PLI scheme was launched to boost domestic manufacturing, investments, and the export of telecom and networking products. The PLI Scheme for Automobile and Auto Component Industry in India (PLI Auto) proposes financial incentives to boost the domestic manufacturing of Advanced Automotive (AAT) products and attract investments in the automotive manufacturing value chain.
Through the new automated online data transfer mechanism, MHI’s PLI Auto Portal will receive data from the applicant’s ERP system. All approved applicants under the PLI scheme have their own ERP system, which is software that enables organisations to manage business activities.
According to a press release, the application programming interface (API) will be embedded with the applicant’s ERP system, making processes in the scheme automatic and paperless. An API is a set of rules that lets different programmes communicate with each other, exposing data and functionality across the Internet in a consistent format. It is an architectural pattern that describes how distributed systems can expose a consistent interface in a secure cyber environment.
Through the previous system, PLI applicants were required to file voluminous claims. The new system eliminates a large amount of paperwork through automation. It reduces the compliance burden for applicants and speeds up claim processing. The release stated that it was created after exhaustive stakeholder consultations with leading original equipment manufacturers (OEMs) and auto component manufacturing companies.
MHI Minister, Mahendra Nath Pandey, noted that the system is an important step in enhancing transparency, ease of doing business, faceless and self-certification-based assessment, and the paperless delivery of services.
The government approved PLI Auto to enhance the country’s manufacturing capabilities for AAT with a budgetary outlay of US$ 3.9 billion. The scheme has been successful in attracting a proposed investment of US$ 8.5 billion against the target estimate of US$ 5.3 billion over five years. FY 2022-23 is the first financial year for which an approved applicant can claim incentives on the determined sales. Sales of AAT products with a DVA of 50% minimum, with sales from 1 April onwards, for a period of five years, shall be eligible for incentives.
Applicants should maintain a detailed DVA calculation for all their eligible products in their own ERP system. It will record the DVA calculation for each batch, product, and model with details of component-wise values, component-wise DVA, and final DVA at the AAT product level. Applicants’ ERP will push the product-wise DVA to the PLI Auto portal on a quarterly basis through the API.
Over the past year, the government has launched several portals and applications to automate the delivery of public services across several sectors. For example, in May, it launched a single national portal for biotech researchers and start-ups that seek regulatory approval for biological research and development projects. The Biological Research Regulatory Approval Portal (BioRRAP) allows stakeholders to see the approvals accorded against a particular application through a unique BioRRAP ID, as OpenGov Asia reported.
In June, the Department of Pension and Pensioners’ Welfare launched a mobile phone version of Bhavishya, an artificial intelligence-enabled common portal for pensioners and elder citizens. The portal aids the seamless processing, tracking, and disbursal of pensions.