Govt issues guidelines about Rs 120 cr Production Linked Incentives for drone firms

The PLI will be extended only to companies engaged in the manufacturing of drones and drone components in India.

PTIUpdated: Friday, December 02, 2022, 09:29 PM IST
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The civil aviation ministry has notified the operational guidelines for the Production Linked Incentive (PLI) scheme for drones and drone components.

The government has approved the PLI scheme with an outlay of Rs 120 crore and the scheme is to be implemented during the 2022-23 to 2024-25 period.

In a communication dated November 29, the ministry said the guidelines have been finalised after consultations with stakeholders, including industry representatives.

The PLI will be extended only to companies engaged in the manufacturing of drones and drone components in India.

The total PLI per manufacturer is capped at Rs 30 crore which is 25 per cent of the total financial outlay of Rs 120 crore.

Indian MSMEs and startups manufacturing drones and having annual sales turnover of Rs 2 crore will be eligible for the scheme. In the case of drone component makers, the eligibility threshold will be Rs 0.5 crore.

For Indian non-MSMEs that are into making drones, the annual sales turnover requirement will be Rs 4 crore for claiming the PLIs. The minimum level will be Rs 1 crore in the case of non-MSME drone component makers, as per the ministry.

Subject to the norms, developers of software for drones and drone components will also be eligible for PLI.

"Excess incentive paid to any applicant (due to any reason like sales return in the subsequent year or some other reason) will be adjusted in the incentives payable in the next year(s).

"If there are no incentives payable in the next year(s), the applicant has to return the incentive along with interest calculated at 3 years SBI MCLR prevailing on the date of disbursement, compounded annually, for the number of days of holding the excess incentive," the ministry said.

The Project Management Agency (PMA) appointed by the ministry will appraise the applications.

A committee chaired by the civil aviation secretary will consider the applications as recommended by the PMA.

Further, an Empowered Group of Secretaries, chaired by the Cabinet Secretary, will monitor the scheme and take appropriate action to ensure that the expenditure is within the prescribed outlay as approved by the Union Cabinet. 

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