PLI Scheme for Automobile & Auto Components

• The Government has issued a Notification regarding Production Linked Incentive (PLI) Scheme for Automobile & Auto components.
• The PLI Scheme for the auto sector envisages overcoming the cost disabilities of the industry for the manufacture of Advanced Automotive Technology products in India.
• The incentive structure will encourage the industry to make fresh investments in the indigenous global supply chain of Advanced Automotive Technology products.
• It is estimated that over a period of five years, the PLI Scheme for the Automobile and Auto Components Industry will lead to fresh investments of over Rs 42,500 crores, and incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs.
• Further, this will increase India’s share in the global automotive trade.
• The PLI Scheme for the Auto sector is open to existing Automotive companies as well as new Non-Automotive investor companies (who are currently not in the automobile or auto component manufacturing business).
• The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme.

• The scheme for Automobile and auto components will be implemented over a period of five years starting from FY 2022-2023.
• An approved applicant shall be eligible for benefits for 5 consecutive Financial Years.
• Financial Year 2019-20 shall be treated as the Base Year for calculation of Eligible sales.
• An existing automotive company or its Group company(ies)will need to meet the Basic Eligibility criteria to receive incentives. New Non-Automotive Investor company or its Group company(ies)(who are currently not in the automobile or auto component manufacturing business) are required to meet the Global Net worth criteria of Rs  1000 crore.

The scheme has the following components:

• Champion OEM Incentive Scheme: The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments and any other Advanced Automotive Technology vehicle prescribed by MHI depending upon technical developments.
• Component Champion Incentive Scheme: The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on pre-approved Advanced Automotive Technology components of all vehicles, CKD/SKD kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors including automobile meant for military use and any other Advanced Automotive Technology components prescribed by MHI depending upon technical developments.
• The list of Advanced Automotive Technology Vehicles and Advanced Automotive Technology Components can be modified by MHI from time to time depending upon technological developments.
• A minimum of 50% domestic value addition will be required and a Phased Manufacturing Programme similar to FAME-II Scheme will be followed.
• Pre-approval of the eligible products will be done by the Testing Agency of MHI as Advance Automotive Product as per the guidelines issued by MHI from time to time.
• Any eligible product will be incentivized only once – Component level or Vehicle

Other Production Linked Incentive (PLI) Schemes in India

• PLI scheme “National Programme on Advanced Chemistry Cell Battery Storage”
• PLI Scheme for IT Hardware
• PLI Scheme for Food Processing Industry
• PLI Scheme for 'National Programme on High-Efficiency Solar PV Modules
• PLI Scheme for White Goods (AC and LED Lights)
• PLI Scheme for Textiles
• PLI Scheme for Drones
• PLI Scheme on Automobiles & Auto Components
• PLI Scheme on Pharmaceuticals

Procurement Schemes in India: Government e-Marketplace

About Government e-Marketplace(GeM), 2016 (Ministry of Commerce and Industry)

• GeM is a one-stop National Public Procurement  Portal to facilitate online procurement of common use Goods & Services required by centres, States, their organizations and PSUs.
• Procurement of goods & services by Ministries and CPSEs is mandatory for goods and services available on GeM. It will bring transparency and efficiency in the government buying process.
• It also provides the tools of e-bidding and reverse e-auction to facilitate the government users achieve the best value for their money.
• At present, GeM has > 15 lakh products, ~ 20,000 services, and > 40,000  Government buyer organizations.
• SWAYATT is an initiative to promote Start-ups, Women and Youth Advantage Through e-Transactions on Government e Marketplace (GeM).
• GeM Start-up Runway is an initiative of GeM in association with Start -up India to facilitate Start-ups registered with Start -up India to access the public procurement market and sell innovative products and services to government buyers.

Government e-Marketplace wins CIPS Award

• Government e-Marketplace (GeM) was announced as the winner in the "Best Use of Digital Technology" category at the CIPS Excellence in Procurement Awards 2021 (CIPS Awards). GeM emerged the winner in this category after competing with some of the biggest and best names in procurement across the public and private sector globally, including GEP, Jaguar Land Rover, Royal Dutch Shell, Vendigital and Shell. GeM was shortlisted as a finalist in two additional categories as well, i.e., 'Public Procurement Project of the Year' and 'Best Initiative to Build a Diverse Supply Base' where it was in the august company of some path-breaking organizations with great initiatives. The award was received on behalf of GeM by Shri Rohit Vadhwana, First Secretary (Economic), High Commission of India, in the UK at a ceremony held London yesterday.
• The CIPS Awards are one of the leading recognitions around procurement globally, which is conducted under the aegis of The Chartered Institute of Procurement & Supply (CIPS), London. CIPS is a global not-for-profit organisation and professional body dedicated to promoting good practices in procurement and supply management, with a community across 150 countries.
• Recognition of GeM on a global platform of this stature is a tremendous shot in the arm for the GeM team and a testament to the vision of the PM Shri Narendra Modi.  GeM has brought its technology-driven innovations and strategic business processes in pursuit of three fundamental goals: driving transparency, efficiency and inclusiveness in public procurement. The design and development of the GeM platform- its digital features and functionalities, key business processes as well as the ancillary offline activities like outreach and training of stakeholders-is guided by these three goals. The use of forward-looking technologies has helped GeM to broadly achieve these goals and more, over the past five years. GeM offers a cashless, contactless, and paperless experience for sellers and buyers, and serves as an end-to-end solution for procurement of common-use goods and services by Government buyers. GeM has completely replaced a previously fragmented public procurement ecosystem by a unified and easy-to-use e-marketplace helping to leverage competitiveness, accessibility, and economies of scale of a diverse, open and transparent procurement system. GeM is an example of how digital platforms created with a strategic and clear intent to transform legacy processes can effect lasting change.
• Government e-Marketplace is a 100% Government owned Section 8 Company setup under the aegis of the Department of Commerce, Ministry of Commerce and Industry for procurement of goods and services by Central and State Government organizations.