Wednesday, September 14, 2022

Rattan India's drone arm Neosky expects PLI incentives to start in next few months

RattanIndia Enterprises drone arm NeoSky India expects benefits of the government's production linked incentive (PLI) scheme for drones and drone components to come in soon.

"Incentives from the PLI scheme will start following in very soon. Our expectations are that in the next few months, the government will release funds under the PLI scheme," Neosky's chief executive officer Sarath Chandra Gudlavalleti said.

Throttle Aerospace Systems, a subsidiary of NeoSky India, had been shortlisted for the government's PLI scheme in July.

Under the scheme, the incentive for a manufacturer of drones and drone components will be 20 percent of the “value addition” made by the company during the next three years.

The value addition is calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components.

The Ministry of Civil Aviation had on May 5 invited applications from the drone industry for the PLI scheme, for manufacturers who had missed the eligibility criteria in 2020-21 but met the criteria in 2021-22.

The eligibility criteria for the PLI scheme include 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.

Gudlavalleti added that in the last year, the drone industry in India has grown exponentially due to the government's move to ease drone operating norms in the country as well as announcing a PLI scheme.

14/09/22 Moneycontrol

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