India’s Civil Aviation Ministry has notified the operational guidelines for the production linked Incentive (PLI) scheme for drones and drone components. An outlay of ₹120 crore has been approved and the scheme is to be implemented between FY23 and FY25.

In a communication dated November 29, the Minstry said, based on consultations and meetings with the stakeholders, including the industry representatives and the concerned departments ,the operational guidelines of PLI scheme for drone components have been finalised.

Eligibility

The PLI scheme will be only for the companies that are involved in the manufacture of drone and drone components in India. Drone components include airflame, propulsion systems, power systems, batteries and associated components, launch and recovery systems, communication systems (such as radio frequency, transponders, etc), cameras, sensors, spraying systems and regulated payloads and also software for drone and drone components.

Total PLI per manufacturer is capped at ₹30 crore.

“In case the calculated incentive payout under this scheme exceeds the budget for a particular year, it will be reduced on a pro rata basis for each applicant,”the notification said.

Companies (non-MSMEs) that have a total annual turnover of ₹4 crore from sale of drones and those with an annual turnover of ₹1 crore from sale of drone components are eligible for the scheme. On the other hand, MSMEs and start-ups with a turnover (annual) of ₹2 crore from drone-making / sales. In the case of drone component makers, the eligibility threshold will be ₹0.5 crore of annual sales.

The project management agency will be the nodal agency and will be responsible for appraisal of applications, verification and eligibility , examination and disbursement of PLI, compiling data regarding performance and progress of the scheme.

“Periodic review”

An empowered group of secretaries (EGoS) has been constituted with the Cabinet Secretary being the Chairperson. The EGoS will undertake “periodic review” of the outgo under the scheme, take appropriate action to ensure that the expenditure is within the prescribed outlay provided by the Cabinet. It will carry out periodic reviews with respect to their investments, employment generation, production and value addition of the PLI scheme. Revision of incentive rates and ceilings will also be under the purview of the EGoS.

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