Civil Aviation Ministry notifies operational guidelines for drone PLI scheme

The Civil Aviation Ministry has notified the operational guidelines for the Production-Linked Incentive (PLI) scheme for drones and drone components

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Civil aviation ministry notifies operational guidelines for drone PLI scheme

New Delhi: The Civil Aviation Ministry has notified the operational guidelines for the Production Linked Incentive (PLI) scheme for drones and drone components. The government has approved the PLI scheme with an outlay of Rs 120 crore and the scheme is to be implemented during the 2022-23 to 2024-25 period. Also, the ministry said that the guidelines have been finalised after consultations with stakeholders, including industry representatives.

Indian MSMEs & drone manufacturers to be eligible for PLI scheme

“The PLI will be extended only to companies engaged in the manufacturing of drones and drone components in India. The total PLI per manufacturer is capped at Rs 30 crore which is 25 percent of the total financial outlay of Rs 120 crore. Indian MSMEs and startups manufacturing drones, having annual sales turnover of Rs 2 crore will be eligible for the scheme,” the ministry said. “Additionally, in case of drone component makers, the eligibility threshold will be Rs 0.5 crore. For Indian non-MSMEs that are into making drones, the annual sales turnover requirement will be Rs 4 crore for claiming the PLIs. The minimum level will be Rs 1 crore in the case of non-MSME drone component makers,” the ministry added.

Aviation Ministry invites applications for PLI scheme for drones & drone components

‘Excessive incentive paid to any applicant will be adjusted in incentives payable’

“Excess incentive paid to any applicant (due to any reason like sales return in the subsequent year or some other reason) will be adjusted in the incentives payable in the next year(s). If there are no incentives payable in the next year(s), the applicant has to return the incentive along with interest calculated in three years prevailing on the date of disbursement, compounded annually, for the number of days of holding the excess incentive,” the ministry said.

The Project Management Agency (PMA) appointed by the ministry will appraise the applications. A committee chaired by the Civil Aviation Secretary will consider the applications as recommended by the PMA. Further, an empowered group of secretaries, chaired by the Cabinet Secretary, will monitor the scheme and take appropriate action to ensure that the expenditure is within the prescribed outlay as approved by the Union Cabinet.

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