Aviation Ministry invites applications under PLI scheme for drone industry 

Civil Aviation Ministry has issued a notification regarding applications for the production-linked incentive (PLI) scheme for drones and drone components.  

The ministry notification stated that all those eligible are advised to submit the application form at the Civil Aviation Ministry’s website – https://www.civilaviation.gov.in/application-pli-scheme. The deadline for submitting these applications is 11:59 pm on March 31.  

The ministry’s statement read, “The application form (for PLI scheme) is of one page only, along with the certificate from the head of organisation and the statutory auditor.” It also noted that more than one company within a group of companies can file separate applications under this PLI scheme and the same will be evaluated independently.

Under the PLI scheme, incentive for a manufacturer of drones and drone components will be 20 per cent of the “value addition” made by the company during the next 3 years. PLI for a beneficiary has been capped at 25 per cent of the total annual outlay to ensure more beneficiaries.  

Value addition by a manufacturer is 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. According to General Dr VK Singh noted, “These rules cover various aspects like type certification, registration and operation of drones, airspace restrictions, research, development and testing of drones, training and licensing, offences and penalties, etc.” 

This scheme was notified in September last year. Aviation Minister Jyotiraditya Scindia said that the Indian drone industry will have a total turnover of ~Rs 15,000 crore by 2026 as the government has given a major boost to the sector with the production-linked incentive (PLI) scheme.  

(With PTI inputs)