The civil aviation ministry has released operating rules for the Production Linked Incentive (PLI) scheme for drones and drone components.
According to estimates, the PLI plan would be implemented between 2022-23 and 2024-25, for which the national government has allocated Rs 120 crore. According to the ministry’s notice, the rules were finalised after talks with stakeholders, including industry leaders. It further stated that the PLI will be extended solely to enterprises in India that manufacture drones and drone components.
Each manufacturer’s maximum PLI is limited to Rs 30 crore, or 25% of the total financial investment of Rs 120 crore. According to the ministry’s announcement, the initiative would be open to Indian MSMEs and startups that manufacture drones and have an annual sales turnover of Rs 2 crore. The qualifying criterion for drone component manufacturers would be Rs 0.5 crore.
For Indian non-MSMEs who manufacture drones, the yearly sales turnover criterion will be Rs 4 crore in order to claim PLIs. According to the ministry, the minimum level for non-MSME drone component producers would be Rs 1 crore.
Developers of software for drones and drone components will also be eligible for PLI, according to the rules.
“Any excess incentive provided to whatever application (for any reason, such as sales return in the next year or other cause) shall be corrected in the incentives awarded in the following year” (s).
“If no incentives are awarded in the next year(s), the applicant must return the incentive together with interest calculated at 3 years SBI MCLR prevailing on the date of distribution, compounded yearly, for the amount of days held,” the ministry stated.
The applications will be evaluated by the ministry’s Project Management Agency (PMA). The applications as proposed by the PMA will be considered by a committee led by the civil aviation secretary.
In addition, an Empowered Group of Secretaries, led by the Cabinet Secretary, would monitor the plan and take appropriate measures to ensure that the expenditure stays within the Union Cabinet-approved budget.
The Ministry of Civil Aviation in India is the nodal ministry responsible for the formulation of national policies and programmes for the development and regulation of civil aviation. It devises and implements schemes for the orderly growth and expansion of civil air transport in the country.
Shri Jyotiraditya M. Scindia
On February 24, 2021, the Department of Telecommunications (DoT) announced the “Production Linked Incentive (PLI) Scheme” with the goal of increasing domestic manufacturing, investments, and exports in telecom and networking products.
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