Govt Invites Applications From Drone Industry For PLI Scheme; Details Here


The Government has invited applications from drone industry for Rs 120 crore Production Linked Incentive (PLI) scheme for the sector.

The last date for submission of the applications under the PLI scheme will be 31 March, according to an official release.

The Drone PLI scheme was notified on 30 September 2021, and the total incentive under the scheme is Rs 120 crore spread over three financial years, which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21, the Civil Aviation Ministry said on Friday (11 March).

According to the ministry, the PLI rate is 20 per cent of the value addition, one of the highest among PLI schemes, it said.

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, the ministry said.

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.

Meanwhile, eligibility norm for MSME and startups is at nominal levels.

Coverage of the scheme includes developers of drone-related software also.

Under the scheme, the PLI for a manufacturer shall be capped at 25 per cent of total annual outlay in a bid to increase the number of beneficiaries.

In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, it will be allowed to claim the lost incentive in the subsequent year if the manufacturer makes up the shortfall in the subsequent year, the ministry said.

The application form is of one page only, along with the certificate from the head of organisation and the statutory auditor, it added.

More than one company within a Group of Companies may file separate applications under this PLI scheme and the same shall be evaluated independently, according to the ministry.

However, the total PLI payable to such applicants shall be capped at 25 per cent of the total financial outlay under this PLI scheme, it added.