Drone Sector in India
The production-linked incentive (PLI) scheme for the drone industry was notified by the Ministry of civil aviation in September 2021
What is there in the scheme?
- Under the scheme, manufacturers of drones and drone components will be given an incentive of 20% of the value addition made by them during the next three years.
- The value addition will be calculated as the annual sales revenue from drones and drone components (net of GST) minus their purchase cost (net of GST). Also, there must be a minimum value addition of 40% of net sales for drones and drone components.
- Under the schemes, the total incentive provided is Rs 120 crore spread over three financial years.
- With the help of the PLI scheme, it is expected that by 2026 the Indian drone industry will have a total turnover of up to Rs 15,000 crore.
What the Government is doing?
- On 11thMarch 2022, the Ministry of civil aviation ministry invited applications from the eligible drone manufacturers for the PLI scheme.
- The application form is one page and it requires a certificate from the head of the organization and the statutory auditor. March 31st,2022 is the deadline for submission of the application form.
- On February 10th,2022, the government banned the import of foreign drones to promote their domestic manufacturing.
- However, there are certain exemptions. With due clearance, drones can be imported for R&D, defense, and security purposes.
Source: THE HINDU.