Government Invites Applications from Drone Industry for Production Linked Incentive

Issue: 03-2022

It was reported on March 11, 2022 that the Government has invited applications from drone industry for Production Linked Incentive (PLI). The PLI scheme was notified on September 30, 2021 with a total incentive of 120 crore spread over three financial years, which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21. The PLI rate is 20 per cent of the value addition, one of the highest among PLI schemes. PLI rate has been kept constant at 20 per cent for all three years, an exceptional treatment for drones. As per the scheme, minimum value addition norm is at 40 per cent of net sales for drones and drone components instead of 50 per cent, an exceptional treatment for drones. Eligibility norm for MSME and start-ups is at nominal levels. Last date for submission of applications is March 31, 2022. The Government has taken a series of measures to promote the industry like Liberalised Drone Rules, Publishing a Drone Airspace Map which opens up nearly 90 per cent of Indian airspace as a green zone for drone flying up to 400 feet and many more.