Delhi:Jyotiraditya M. Scindia, Union Minister of Civil Aviation said that under the PLI scheme, incentives of Rs 120 crore will be given in the next three years.
The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including mobile phones, electronic components, and ATMP units.
This amount is 1.5 times the combined size of the manufacturing drone sector. Over a period of three years, an estimated investment worth Rs 5,000 crore for manufacturing sector drones will be done which in turn will bring a turnover of Rs 900 crore, and 10,000 job opportunities will be created. He further added that the objective is to establish India as a global drone hub by 2030 and the Ministry of Civil Aviation is committed to facilitating industry, service delivery, and consumers in achieving the aforesaid target.
Here are the Special features of the PLI Scheme for Drones, 2021
- The total amount allocated for the PLI scheme for drones and drone components is Rs 120 crores spread over three financial years. This amount is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21.
- The incentive for a manufacturer of drones and drone components shall be as high as 20% of the value addition made by her.
- 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 drone and drone components.
- The Government has agreed to keep the PLI rate constant at 20% 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.
- The proposed tenure of the PLI scheme is three years starting in FY 2021-22. The PLI scheme will be extended or redrafted after studying its impact in consultation with the industry.
- The Government has agreed to fix the minimum value addition norm at 40% of netsales for drones and drone components instead of 50%, another exceptional treatment given to the drone industry. This will allow widening the number of beneficiaries.
PLI for a manufacturer shall be capped at 25% ofthe total annual outlay. This will allow widening the number of beneficiaries.
In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, she will be allowed to claim the lost incentive in the subsequent year if she makes up the shortfall in the subsequent year.