Centre invites applications from drone industry for Rs 120 crore PLI scheme

The PLI scheme for drones was notified on 30th September 2021. 

New Delhi: The Ministry of Civil Aviation on Friday announced that the government has invited applications from the drone industry for the Rs 120 crore production-linked incentive (PLI) scheme.

The PLI scheme, which was notified on 30th September 2021, seeks to provide a total incentive of Rs 120 crore for the manufacturing of drones in India over the next three financial years. The incentives offered under the scheme is nearly double the combined turnover of all domestic drone manufacturers in the financial year 2020-21.

The PLI rate is 20 per cent of the value addition, one of the highest among PLI schemes. The value addition shall be calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components. 

PLI rate has been kept constant at 20 per cent for all three years, exceptional treatment for drones.As per the scheme, the minimum value addition norm is at 40 per cent of net sales for drones and drone components instead of 50 per cent, exceptional treatment for drones. 

The eligibility norm for MSME and startups is at nominal levels.Coverage of the scheme includes developers of drone-related software also. PLI for a manufacturer shall be capped at 25 per cent of the total annual outlay. This will allow widening the number of beneficiaries, the Ministry of Civil Aviation said in a statement.