December 4, 2022

MoCA invites applications for PLI scheme for drones and drone components

Companies who have crossed the PLI eligibility threshold for FY 2021- 2022 can apply

Last date for submitting the application form is 20th May 2022

New Delhi, Ministry of Civil Aviation (MoCA) has opened the application window for those manufacturers of drones and drone components, who may have crossed the Production-linked Incentive (PLI) eligibility threshold for the full financial year (April 1, 2021 to March 31, 2022). Such manufacturers may submit the application form at https://www.civilaviation.gov.in/application-pli-scheme

The MoCA order dated May 4, 2022 is at: https://www.civilaviation.gov.in/sites/default/files/Application%20for%20PLI%20scheme%20for%20drones%20and%20drone%20components.pdf

The deadline for submitting the application form is 23.59 hours on May 20, 2022.The final list of PLI beneficiaries is expected to be released by June 30, 2022 after detailed scrutiny of their financial results and other specified documents. 

Earlier on April 20, MoCA has published a provisional list of 14 PLI beneficiaries based on the financial results submitted by PLI applicants for the ten-month period (April 1, 2021 to January 31, 2022).These include five drone manufacturers and nine drone component manufacturers. The MoCA order dated April 20 is at:  https://www.civilaviation.gov.in/sites/default/files/Public%20Notic.pdf

The eligibility criteria for the PLI scheme for drones and drone components includes an annual sales turnover of Rs 2 crore for drone companies and Rs 50 lacs for drone components manufacturers; and value addition of over 40 per cent of sales turnover.

The PLI scheme for drones and drone components was notified on September 30 last year. Under the scheme, a total incentive of Rs 120 crore is spread over three financial year which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21. The PLI rate is 20 per cent of the value addition which is one of the highest among other PLI scheme. The PLI scheme for drones and drone components is at: https://egazette.nic.in/WriteReadData/2021/230076.pdf

Apart from the PLI Scheme, Government of India has carried series of reforms to make India a global drone hub by 2030. This includes notification of the liberalised Drone Rules, 2021; publishing of Drone Airspace Map 2021 which opens nearly 90 per cent of Indian airspace as a green zone, UAS Traffic Management (UTM) policy framework 2021; Drone Certification Scheme 2022 which makes it easier for drone manufacturers to obtain a type certificate; Drone Import Policy, 2022 which bans import of foreign-made drones; and the Drone (Amendment) Rules, 2022 which abolishes the requirement of a drone pilot license for drone operations.

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