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The Centre is contemplating launching a PLI (Production-Linked Incentive) 2.0 scheme to develop a self-sustaining drone ecosystem in the country, sources told businessline.
Accordingly, the proposed scheme aims to provide incentives to locally manufacture drones and their components and to promote a host of other services, such as leasing and selling software used to operate these Unmanned Aircraft Systems (UAS).
Besides, it intends to promote domestic drone manufacturing as well as to reduce dependence on imports.
As per sources, the scheme also aims to incentivise local manufacturers to develop and produce drone components domestically.
Currently, 50-60 per cent of drone parts used in India are imported; the new scheme seeks to reverse this trend by offering incentives to increase the localisation levels to about 30 per cent of the total value.
According to sources, the incentives will be provided as a predetermined percentage of the total sale amount of drones, value addition, and localised parts.
“This proposal is expected to not only boost domestic manufacturing but also create a robust ecosystem for drone production in India,” sources told businessline.
“Though the finer details are still being worked out, an allocation of approximately ₹1,000 crore for the scheme is possible,” sources said.
Besides, the scheme’s scope will extend beyond just parts manufacturing, covering areas such as drone leasing and the sale of software used for drone operations.
“The comprehensive approach is designed to foster a thriving drone industry in the country and to establish India as a major drone manufacturing hub,” sources said.
At present, nearly 300 drone manufacturers in the country manufacture various kinds of UAS for various utilities, spanning from defence to agriculture.
Industry estimates a healthy demand for drones in various sectors, including agriculture, infrastructure development, and surveillance.
Furthermore, the proposed PLI scheme will succeed an earlier iteration that was notified in 2021 to promote manufacturing drones and drone components in India.
Notably, the earlier version provided an incentive of ₹120 crore for Indian manufacturers of drones and drone components based on their value addition in India, calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drones and drone components.
The incentive was spread over three financial years, from 2021–22.
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