NEW DELHI: The Ministry of Civil Aviation has notified the operational guidelines for the Production Linked Incentive (PLI) scheme for drones and drone components in India. It is yet another step in realising the aim of becoming a prominent drone manufacturing hub by 2030.
The government has approved the PLI scheme with an outlay of Rs 120 crore. It will be in force till March 31, 2025, ministry sources said. The guidelines have been finalised after consultations with stakeholders, including industry representatives. The PLI will be extended only to companies engaged in the manufacturing of drones and drone components in India.
The Indian government expects the annual turnover of the drone manufacturing sector to cross Rs 900 crore and the drone services sector to exceed Rs 30,000 crore in the next three years. The sector is expected to generate over 5 lakh jobs.
The government will invest Rs 120 crore in the PLI scheme for the drone manufacturing sector. It is urging the industry to focus on applications in the fields of agriculture and healthcare, besides military use, such as spraying of nano urea, transportation of Covid-19 vaccines, weather forecasting, surveillance of forest areas, border patrolling and rural surveying.
At the Bharat Drone Mahotsav, organised in May this year, Prime Minister Narendra Modi had sent out a strong message for ushering in transformational change by making India the hub of drone manufacturing by 2030. By flying a drone himself, he tried to convey the message that these systems will become essential for business and social welfare in the future and India intends to become a key player in the global market.
Under the scheme, the total incentive per manufacturer is capped at Rs 30 crore, which is 25% of the total outlay of Rs 120 crore. Indian MSMEs and startups manufacturing drones and having annual sales turnover of Rs 2 crore will be eligible. In the case of drone component makers, the eligibility threshold will be Rs 0.5 crore.
For Indian non-MSMEs that are into making drones, the annual sales turnover requirement will be Rs 4 crore for claiming the PLIs. The minimum level will be Rs 1 crore in the case of non-MSME drone component makers. Developers of software for drones and drone components will also be eligible for PLI. A group of secretaries, chaired by the cabinet secretary, will ensure that the expenditure is within the outlay.
“Excess incentive paid to any applicant (due to any reason like sales return in the subsequent year or some other reason) will be adjusted in the incentives payable in the next year(s),” the guidelines state.“If there are no incentives payable in the next year(s), the applicant has to return the incentive along with interest calculated at 3 years SBI MCLR prevailing on the date of disbursement, compounded annually, for the number of days of holding the excess incentive,” the ministry said.
Govt to invest Rs 120 crore in scheme
Under the scheme, the total incentive per manufacturer is capped at Rs 30 crore, which is 25% of the total outlay of Rs 120 crore. Indian MSMEs and startups manufacturing drones and having annual sales turnover of Rs 2 crore will be eligible. In the case of drone component makers, the eligibility threshold will be Rs 0.5 crore.
For Indian non-MSMEs that are into making drones, the annual sales turnover requirement will be Rs 4 crore for claiming the PLIs. The minimum level will be Rs 1 crore in the case of non-MSME drone component makers. Developers of software for drones and drone components will also be eligible for PLI.