Drone manufacturing under PLI scheme

A production-linked incentive has been announced by the Union government for the drone industry with an outlay of Rs 120 crore spread over three financial years. The scheme offers an incentive of 20% of the value addition made by a manufacturer of drones and drone components. Beginning with this financial year, the government aims to attract investments worth Rs 5,000 crore.

Under the scheme, a company – with a sales net of Rs 100 crore and purchase net of Rs 60 crore – PLI (rate of 20%) will be calculated on Rs 40 crore and will be eligible for a PLI of Rs 8 crore. The PLI rate is constant at 20% for all three years.

“The drones and drone components manufacturing industry may see an investment of over Rs 5,000 crore over the next three years. The annual sales turnover of the drone manufacturing industry may grow from Rs 60 crore in 2020-21 fold to over Rs 900 crore in FY 2023-24. The drone manufacturing industry is expected to generate over 10,000 direct jobs over the next three years,” the Ministry of Civil Aviation stated.



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