Under the PLI scheme, government accepting applications from drone makers

The government has welcomed proposals from industry stakeholders under the production-linked incentive (PLI) scheme in order to stimulate local drone manufacturing. The scheme’s overall incentive is Rs 120 crore, divided across three financial years. The incentive for manufacturing drones and drone components, according to the programme, is 20% of the value-added, which is one of the largest among PLI schemes.

“As per the scheme, the minimum value addition norm is at 40 percent of net sales for drones and drone components instead of 50 per cent, exceptional treatment for drones. Eligibility norm for MSME and startups is at nominal levels,” Civil Aviation Ministry said on Friday.

The yearly sales revenue from drones and drone components (net of GST) would be subtracted from the acquisition cost of drones and drone components (net of GST). The deadline for application submissions is March 31, 2022. Developers of drone-related software are likewise covered by the drone PLI programme.

“PLI for a manufacturer shall be capped at 25 percent of total annual outlay. This will allow widening the number of beneficiaries,” the Aviation Ministry said.