INR 30 Cr Disbursed For PLI Scheme For Drones, Components

Mobility Outlook Bureau
06 Apr 2023
12:11 PM
1 Min Read

The PLI scheme for drones and drone components began in September 2021, intending to grow India’s indigenous drone industry.


Drones

The Ministry of Civil Aviation (MoCA) disbursed approximately INR 30 crore to beneficiaries of the Production Linked Incentive (PLI) Scheme for Drones and Drone Components during FY23. The Government notified the PLI scheme in September 2021 with a vision to promote the indigenous drone industry.

The Ministry released a provisional list of 23 PLI beneficiaries in July last year, comprising 12 drone manufacturers and 11 drone component manufacturers. The coverage of the scheme includes MSMEs and developers of drone-related software also.

Under the scheme, an incentive of INR 120 crore is available, spread over three financial years. This amount was nearly double the combined turnover of all domestic drone manufacturers in FY21.

The PLI rate for this scheme has been pegged at 20% of the value addition, which, according to MoCA, is the highest among PLI schemes. The value addition is calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST). The PLI rate of 20% will be constant for all three years, as an exceptional case for the Indian drone industry.

The PLI for a manufacturer is capped at 25% of the total annual outlay, and in case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, they will be allowed to claim the lost incentive in the subsequent year if the shortfall is made up in the subsequent year.

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