Civil Aviation Ministry notifies op guidelines for drone PLI scheme

The Centre approved the PLI scheme with an outlay of Rs 120 crore for 2022-23 to 2024-25 period.

In a communication dated November 29, the ministry said it finalised the guidelines after consultations with stakeholders, including industry representatives.

Only companies engaged in the manufacturing of drones and drone components in India are eligible to apply for the PLI scheme.

A cap of Rs 30 crore has been fixed for the total PLI per manufacturer which is 25 percent of the total financial outlay of Rs 120 crore.

Indian MSMEs and startups involved in the manufacturing of drones and drone components with annual sales turnover of Rs 2 crore will be eligible.

In the case of drone component makers, the eligibility limit will be Rs 0.5 crore.

Indian non-MSMEs that are into making drones can also claim the PLIs but must have an annual sales turnover of Rs 4 crore.

The eligibility threshold for non-MSME drone component makers will be Rs 1 crore in the case, as per the ministry.

The scheme also allows the participation of software developers for drones and drone components.

"Excess incentive paid to any applicant (due to any reason like sales return in the subsequent year or some other reason) will be adjusted in the incentives payable in the next year(s).

"If there are no incentives payable in the next year(s), the applicant has to return the incentive along with interest calculated at 3 years SBI MCLR prevailing on the date of disbursement, compounded annually, for the number of days of holding the excess incentive," the ministry said.

The Project Management Agency (PMA) appointed by the ministry will assess the applications followed by an evaluation by a committee chaired by the civil aviation secretary as recommended by the PMA.

An Empowered Group of Secretaries, headed by the Cabinet Secretary, will track the scheme and ensure that the money spent does not exceed the prescribed outlay as approved by the Union Cabinet.