Tuesday, November 30, 2021

PLI scheme worth Rs 120 cr provided for Indian drone, component manufacturers

Production-Linked Incentive (PLI) scheme for drones and drone components worth Rs 120 crore has been notified to push the production of drones. PLI for a beneficiary is capped at 25 per cent of the total annual outlay to ensure more beneficiaries. The PLI provided to manufacturers will be 20 per cent of the value addition in India.

Not only will manufacturers get incentives, the procedures to get drone approvals have also been made much easier through a digital sky platform which will act as a single window system for all drone-related approvals and authorisations, Minister of State for Civil Aviation General (Retd.) Dr VK Singh said in a written reply to the Upper House of the Parliament.

Under this scheme, the manufacturers can claim 20 per cent of the value addition in India as PLI. The PLI shall be provided over three financial years beginning from 2021-22 and will remain constant for all three years.  Minimum value addition is specified as 40 per cent of net sales.

The value addition by a manufacturer will be calculated as annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components.

Yes. If MSMEs and startups focusing on drone manufacturing have an annual sales revenue of Rs 2 crore and Rs 50 lakh of annual sales revenue in case they are focused on drone component manufacturing.

“In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, the manufacturer will be allowed to claim the lost incentive in the subsequent year if the manufacturer makes up the shortfall in the subsequent year. The liberalized Drone Rules, 2021 notified on 25 August, 2021 provide the regulatory framework for owning and operation of drones,” General (Retd.) Dr VK Singh said in a written reply to the Rajya Sabha.

29/11/21 Business Today

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