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PLI Scheme For Making Drones With Outlay Of Rs 120 Cr

The government has approved a Rs 120 crore production-linked incentive (PLI) scheme for drones and drone components for implementation during the current fiscal year (2022-23) until 2024-25.
Drone in a factory being manufactured.

Government has approved the production-linked incentive (PLI) scheme forand drone components for implementation during the current year (2022-23) till 2024-25 with an outlay of Rs 120 crore. The objective behind this scheme is to incentivise the manufacturing of drones so as to make them self-sustaining and globally competitive.

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The operational guidelines of the PLI scheme for drones and drone components have been finalised as a result of consultations/meetings with stakeholders, including industry representatives and relevant departments.
According to a statement from the Ministry of Civil Aviation (MoCA), the goal of this scheme is to incentivize the manufacturing of drones in order to make them self-sustaining and globally competitive.

According to the statement, the liberalised Drone Rules, 2021, were released to create a growth-oriented regulatory framework for drones in order to make the country a global hub for the research and development, testing, manufacturing, and operation of drones under the Atmanirbhar Bharat Abhiyan. In order to facilitate future growth, the government announced the approval of the PLI scheme for drones and drone components in India.

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PLI Scheme With Outlay Of Rs 120 Cr

Some of the operational guidelines that were made available to stakeholders and the general public were based on company definitions; eligibility; application and online portal; project management agency (PMA), empowered group of secretaries (EGoS), and the Competent Authority; approval under PLI and baseline determination; and calculation and disbursement of incentives.

These plan applicants are firms registered in India that manufacture drones and drone components. Manufacturing might take place in one or more places in India.
The target segment, according to the statement, includes drones and drone components. Drone components include, among other things, an airframe, propulsion systems (both engine and electric), power systems, batteries and associated components, launch and recovery systems, communication systems, cameras, sensors, detect-and-avoid systems, and software for drones and drone components.

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Making Drones

In terms of applications, the statement stated that they should be accompanied by supporting documentation and an application fee. The application recognition date is the date on which the ministry acknowledges it following first review. The application approval date is the day on which the PMA grants permission under the programme based on an application.
The initiative would be executed through a nodal body, according to the instructions. This nodal agency will serve as a PMA, providing secretarial, management, and implementation assistance as well as carrying out obligations as allocated by the ministry from time to time.

The PMA would be in charge of evaluating applications and verifying eligibility, examining claims, compiling data on the scheme’s progress and performance, and keeping an eye out for any deviations caused by changes in accounting policy or duplication of benefits due to the same activity under different PLI schemes. The scheme must include a provision for external auditing.

Under the system, the EGoS will perform periodic assessments of qualified enterprises in terms of their investments, job creation, production, and value addition. During the scheme’s tenure, it may alter incentive rates, ceilings, and eligibility conditions as judged appropriate.
According to the ministry’s statement, claims for incentive disbursement must be filed on an annual basis by the applicant within 12 months of the end of the fiscal year for claims pertaining to FY22 (2021-22) and within six months of the end of the financial year to which the claim pertains for claims pertaining to the scheme’s remaining tenure.

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Direct Bank Transfer

Applicants will be required to submit claims for incentive disbursement to the PMA in order to claim incentives under the scheme. Applicants must ensure that their claims are complete in every way and that they are accompanied by all of the required documents in the format specified. PMA must review the disbursement claims submitted by an applicant.

The announcement further stated that the PMA will process claims for incentive payments and make suitable recommendations to the Competent Authority. It further said that rewards might be disbursed by Direct Bank Transfer or any other means of adjustment in the applicant’s sole name. In the event of excess claims, the applicant must reimburse MoCA for any refundable incentive amount, plus interest calculated over three years.

On a quarterly basis, the PMA will report budgetary requirements to MoCA as a consolidated sum. According to the statement, all accepted candidates must submit self-certified quarterly review reports within 30 days of the end of each quarter. The ministry also stated that these guidelines may be amended or modified at any time during the scheme’s duration.
Any dispute arising from any of the conditions stipulated in the norms, the selection of proposals, or issues during the scheme’s implementation will be resolved by courts/tribunals with jurisdiction in Delhi.

FAQs

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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