PLI Scheme for Drone Industry

The production-linked incentive (PLI) scheme for the drone industry was notified by the Ministry of civil aviation in September 2021.

About the scheme

• Under the scheme, manufacturers of drones and drone components will be given an incentive of 20% of the value addition made by them during the next three years.
• The value addition will be calculated as the annual sales revenue from drones and drone components (net of GST) minus their purchase cost (net of GST). Also, there must be a minimum value addition of 40% of net sales for drones and drone components.
• Under the schemes, the total incentive provided is Rs 120 crore spread over three financial years.
• With the help of the PLI scheme, it is expected that by 2026 the Indian drone industry will have a total turnover of up to Rs 15,000 crore.

Invitation for applications

On 11^th March 2022, the Ministry of civil aviation ministry invited applications from the eligible drone manufacturers for the PLI scheme. The application form is one page and it requires a certificate from the head of the organization and the statutory auditor. March 31^st, 2022 is the deadline for submission of the application form.

Ban on import of foreign drones

On February 10^th, 2022, the government banned the import of foreign drones to promote their domestic manufacturing. However, there are certain exemptions. With due clearance, drones can be imported for R&D, defense, and security purposes.

Month: Current Affairs - March, 2022

Category: Government Schemes Current Affairs