Published: 6th Oct, 2022
Context
In a move to tighten the incentive disbursal system under the government’s flagship incentive schemes for electric vehicles, the Heavy Industries Ministry is moving from a paper-based subsidy claims mechanism to a new digital platform.
About
About the Initiative
- The Heavy Industries Ministry has decided to move from a paper-based subsidy claims mechanism to a new digital platform.
- The digital platform will track the value addition achieved by a vehicle manufacturer using domestically produced inputs from equipment manufacturers.
- Under this new platform, an IT-enabled system based on Application Programming Interface or API, would be leveraged to ensure that data pertaining to the net value addition is achieved during the manufacturing process.
- The data will automatically feed into the Ministry’s portal from the vehicle manufacturers’ enterprise resource planning (ERP)
- This enables traceability of equipment and inputs with their complete digital footprint.
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ERP is application software that organizations use to manage business activities. |
What is the current process for availing of Subsidies?
- Currently, companies file their application in the physical format to claim incentives under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME) scheme and other flagship schemes such as the Productivity-Linked Incentive (PLI).
- This (digital system) will not just bring in transparency but also is the next level in ease of doing business and will save a lot of hassle for companies that have to file it in physical form as on date.
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FAME India Scheme:
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