Drone PLI Scheme: Rs 30 Crore Disbursed To Beneficiaries During FY23

In FY 2022-23, the Ministry of Civil Aviation distributed around Rs 30 crore to beneficiaries as part of the PLI Scheme for Drones and Drone Components.

In a bid to boost the indigenous drone industry, the government had notified the Rs 120 crore Production Linked Incentive (PLI) scheme for drones and drone components on 30 September 2021.

A provisional list of 23 drone PLI scheme beneficiaries was released on 6 July 2022. 

The beneficiaries include 12 drone manufacturers and 11 drone component manufacturers. 

The PLI scheme includes various measures to support the industry.

The total incentive under the drone PLI Scheme Rs 120 crore spread over three financial years.  It is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21, according to a Civil Aviation Ministry release on Tuesday (4 March).

This scheme's PLI rate is 20 per cent of the value addition, which is one of the highest among PLI schemes.

Under the scheme, the value addition is calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components. 

Further, the PLI rate for the scheme is kept constant at 20 per cent for all three years, which is an exceptional treatment for the drone industry in the country, according to the ministry.

Under the scheme, Drones and drone components require a minimum value addition norm of 40 per cent of net sales, an exception from the usual 50 per cent requirement.

Further, the eligibility norms for MSME and startup are minimal under the scheme.

Drone-related software developers are also covered under the scheme.

The scheme caps the PLI for a manufacturer at 25 per cent of the total annual outlay, allowing for the widening of the number of beneficiaries.

Further, In case a manufacturer fail to meet the threshold for the eligible value addition for a particular financial year in the scheme, they will be allowed to claim the lost incentive in the subsequent year if she makes up the shortfall in the subsequent year.

23 PLI beneficiaries, 12 drone manufacturers and 11 drone component manufacturers, were listed on 6th July 2022.