Drone Sector in India

 

Context:

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.

 

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