APPROVAL OF THE PRODUCTION LINKED INCENTIVE SCHEME FOR DRONES AND DRONE COMPONENTS – A BIG DECISION BY THE GOI

Analysing the importance, the GOI has approved this scheme which will help drone manufacturing companies to grow in the next three years.

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APPROVAL OF THE PRODUCTION LINKED INCENTIVE SCHEME FOR DRONES AND DRONE COMPONENTS – A BIG DECISION BY THE GOI

Central Govt of India has taken another step forward towards the vision of an “Aatmanirbhar Bharat”. Narendra Modi, the honorable Prime Minister of India, has approved the PLI (Production Linked Incentive) scheme for the drone as well as components of drones for the first time in the history of India. An outlay of 120 crore INR (Indian Rupees) has been proposed by the Government for this scheme.

The Ministry of Civil Aviation has assessed that drone is beneficial for almost every sector such as mining, surveillance, emergency responses, mapping, defense, transportation, and so on. The reach of this appliance in some remote areas of India is significant and useful for many major operations. Analysing the importance, the GOI has approved this scheme which will help drone manufacturing companies to grow in the next three years. According to the presumed data by the specialists over 5000 crores, INR investments for the drone industry as well as almost 900 crore INR turnover from the industry is expected in the next few years by the Government of India. According to the data for 2020-2021, the current annual turnover for the drone industry is merely 60 crore INR, hence if the expected amount of annual turnover is achieved, it will be a huge financial growth for the Indian Government. Additionally, the industries might generate 10,000 direct employees as well as nearly 5 lakhs employment (Including direct and indirect) the people in the coming three years’ time.

Also Read: Agriculture: Will Indian farmers now use drones to cultivate their crops?

As per the strength in innovation, IT this expected economic betterment is indeed a big opportunity for the country. By 2030 India has the potential to become the ‘Global Drone Hub’, assumed by the GOI. Additionally, the service industries like drones such as operatio traffic management, logistics and so on are also expected to attain a huge growth of almost 30,000 crore INR in coming years.

In this new PLI scheme, there will be some added rule implementation, intending the growth of the industry. However, the basic ‘Drone Rules, 2021’ published by the Central Government on 25th of August 2021 will be the fundamental ruleset for all industries.

Highlights of the Scheme:
1. The allotted amount for this PLI scheme for the drone as well as drone components is 120 crore INR, confirmed by the Government of India.
2. The rate of the PLI has been agreed to be kept constant at 20% for all the coming three years by the Central Government, of India. This is an exceptionally generous decision taken by the government, as in general, the PLI reduces every year for other industries.
3. The calculations of value addition have been decided to be done by subtracting the purchase cost (net of GST) of drones as well as its components from the annual sales revenue derived from them (net of GST)
4. This proposed PLI scheme is covering a wide variety of the components such as cameras, sensors, spraying systems, communication systems such as radio frequency, flight control modules, inertial navigation systems, ‘detect and avoid’ systems, emergency recovery systems, trackers and so on. This list is also expected to get expanded with the advancement of technology, confirmed by the GOI.

According to the Civil Aviation Ministry, the entire scheme and its implementation will be monitored by an empowered group of secretaries.

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APPROVAL OF THE PRODUCTION LINKED INCENTIVE SCHEME FOR DRONES AND DRONE COMPONENTS – A BIG DECISION BY THE GOI
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Analysing the importance, the GOI has approved this scheme which will help drone manufacturing companies to grow in the next three years.
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THE POLICY TIMES