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

The Civil Aviation Ministry on Thursday invited second round of applications for the production-linked incentive (PLI) scheme that was announced last year to boost drone manufacturing in India
Aviation Ministry invites applications for PLI scheme for drones & drone components

New Delhi: The Ministry of Civil Aviation (MoCA) has opened the application window for those manufacturers of drones and drone components who may have crossed the PLI eligibility threshold for the full financial year from April 1, 2021 to March 31, 2022. The deadline for submitting the application form is 23.59 hours on May 20. The final list of PLI beneficiaries is expected to be released by June 30, after detailed scrutiny of their financial results and other specified documents.

Earlier on April 20, the Ministry of Civil Aviation had published a provisional list of 14 PLI beneficiaries based on the financial results submitted by PLI applicants for the 10-month period (From April 1, 2021 to January 31, 2022). These include five drone manufacturers and nine drone component manufacturers.

The eligibility criteria for the PLI scheme for drones and drone components includes an annual sales turnover of Rs 2 crore for drone companies and Rs 50 lakh for drone components manufacturers, and value addition of over 40 percent of sales turnover.

The PLI scheme for drones and drone components was notified on September 30, 2021. Under the scheme, a total incentive of Rs 120 crore is spread over three financial years which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21. The PLI rate is 20 percent of the value addition which is one of the highest among other PLI schemes.

Apart from the PLI scheme, the government has carried a series of reforms to make India a global drone hub by 2030. This includes notification of the liberalised Drone Rules 2021, publishing of Drone Airspace Map 2021 which opens nearly 90 percent of Indian airspace as a green zone, UAS Traffic Management (UTM) policy framework 2021, Drone Certification Scheme 2022 which makes it easier for drone manufacturers to obtain a type certificate, Drone Import Policy, 2022 which bans import of foreign-made drones, and the Drone (Amendment) Rules, 2022 which abolishes the requirement of a drone pilot license for drone operations, said the ministry.

Manufacturers may submit the application form by clicking here. The MoCA order dated May 4, 2022, can be accessed by clicking here.

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