Centre gives PLI boost to drone manufacturing

New Delhi, Sep 15 The Centre on Wednesday approved a Production-Linked Incentive (PLI) scheme for drones and drone components manufacturing.

Accordingly, the total amount allocated for the PLI scheme for drones and drone components is Rs 120 crore spread over three financial years.

This amount, according to an official communique, is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21. The proposed tenure of the PLI scheme is three years, starting FY22.

"The incentive for a manufacturer of drone and drone components shall be as high as 20 per cent of the value addition," the communique said.

"The value addition shall be calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drones and drone components," ir added.

As per the communique, the government has agreed to keep the PLI rate constant at 20 per cent for all three years, an exceptional treatment given only to the drone industry.

"In PLI schemes for other sectors, the PLI rate reduces every year," it said.

The communique also said that as a result of the incentive scheme, 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 to over Rs 900 crore in FY 2023-24," the communique said.

"The drone manufacturing industry is expected to generate over 10,000 direct jobs over the next three years," it added.

The drone services industry is expected to grow to more than Rs 30,000 crore over the next three years.

"The drone services industry is expected to generate over five lakh jobs in three years," the communique said.