Central Govt Invites Applications for Drone PLI Scheme

The Central Government on Thursday announced that it has invited applications for the Drone production linked incentive (PLI) scheme. The government also announced that the overall incentive under this scheme is Rs. 120 crores. This amount will be spread out over three years. A striking thing to know about this is that it is almost double the turnover of all the drone manufacturers in the Indian Market in the financial year 2020 and 2021. The PLI rate is 20 percent of the value added. According to the statement released, yesterday, Government said: "The value addition should be measured as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost of drones and drone components (net of GST). Instead of 50 percent, the minimum value addition norm for drones and drone components is 40 percent, which is an exceptional treatment for drones." Furthermore, it stated that a manufacturer's PLI must not exceed 25 percent of their overall yearly outlay. "By doing so, we will be able to reach a larger number of beneficiaries."