July 7, 2022
The beneficiaries are comprised of 12 drone manufacturers and 11 drone component manufacturers
The government invited applications from eligible manufacturers on May 4, 2022, and the deadline for submission was May 20, 2022
Total annual sales turnover of the shortlisted companies has increased from INR 88 crore in FY21 to about INR 319 crore in FY22
The PLI scheme for drones and drone components was initiated on September 30, 2021
The Ministry of Civil Aviation released the second list of 23 beneficiaries under the Production-Linked Incentive (PLI) scheme to promote the manufacturing of drones and drone components in the country.
The beneficiaries are comprised of 12 drone manufacturers and 11 drone component manufacturers. According to the Ministry, the total annual sales turnover of the shortlisted companies has increased from INR 88 crore in FY21 to about INR 319 crore in FY22.
Eligibility Criteria
The PLI scheme’s qualifying requirements for organizations include a sales turnover of at least INR 50 lakh for manufacturers of drone components and INR 2 crore for drone companies, as well as a value addition of at minimum 40% to the sales turnover.
The Ministry invited applications from eligible manufacturers on May 4, 2022 and the deadline for submission was May 20, 2022.
About the scheme
The PLI scheme for drones and drone components was initiated on September 30, 2021. Under the scheme, a total allocation of INR 120 crore is spread over three financial years, , which is nearly double the total turnover of all domestic drone manufacturers in FY21. The PLI rate is one of the highest among other PLI schemes, at 20% of the value addition.
As per the scheme, manufacturers who do not meet the value addition threshold in FY22 will be allowed to claim the lost incentive in the next year, if they make up the deficit in FY23.