PLI Scheme for Drone Industry

The production-linked incentive (PLI) scheme for the drone industry was notified by the Ministry of civil aviation in September 2021.

About 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.

Invitation for applications

On 11th March 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.

Ban on import of foreign drones

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.

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