New Delhi: The civil aviation ministry on Friday announced that the government has invited applications from the drone industry for a Rs 120-crore Production-Linked Incentive (PLI) scheme.
The PLI scheme, which was notified on 30 September 2021, seeks to provide a total incentive of Rs 120 crore for manufacturing drones in India over the next three financial years. The incentives offered under the scheme are almost double the combined turnover of all domestic drone manufacturers in the financial year 2020-21.
The PLI rate is 20 per cent of the value addition, which is the highest among PLI schemes. The value addition will be calculated as the annual sales revenue (net of GST) from drones and drone components minus the purchase cost (net of GST) of drones and drone components.
The PLI rate has been kept constant at 20 percent for all three years, an exceptional treatment for drones. As per the plan, the minimum value addition norm is 40 per cent instead of 50 per cent of net sales for drones and drone components, a treatment for exceptional drones.
The eligibility criteria for MSMEs and Startups is at a nominal level. The scope of the plan also includes developers of software related to drones. The PLI for a manufacturer will be 25 per cent of the total annual outlay. The Ministry of Civil Aviation said in a statement that this will increase the number of beneficiaries.
If a manufacturer fails to meet the threshold for eligible value addition for a particular financial year, it will be allowed to claim the lost incentive in the subsequent year if it meets the shortfall in the subsequent year.
The application form is of one page only, along with certificates from the head of the organization and the statutory auditor. More than one company within a group of companies may file separate applications under this PLI scheme and they will be assessed independently. Read also: Apple iPhone 13 Mini on sale for iPhone SE 2022 price: Check offer details before pre-booking the phone
However, the total PLI payable to such applicants will be limited to 25% of the total financial outlay under this PLI scheme. The ministry said that the last date for submission of application forms is March 31, 2022. Read also: Russo-Ukraine war: Google will send airstrikes alerts to Android users in Ukraine
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