Indian Economy News

Central Government is providing an incentive of Rs. 120 crore (US$ 15 million) under PLI scheme

On September 30, 2021, the Production-Linked Incentive (PLI) Scheme for drones and drone parts was announced. On July 6, 2022, a preliminary list of 23 PLI beneficiaries was made public. Twelve drone manufacturers and eleven drone component producers are among the winners.

Over the course of three fiscal years beginning in 2021–22, the government would offer an incentive of Rs. 120 crore (US$ 15 million). The incentive for 2021–2022 will be paid out in 2022–2023 following an examination of the beneficiaries' financial results.

The following requirements have been established for producers of drones and drone component parts:

  • The eligibility standard for micro, small and medium enterprises (MSMEs) and startups is set at Rs. 2 crore (US$ 250,706.60) for drone manufacturers and Rs. 50 lakh (US$ 62,676.65) for drone component manufacturers in annual sales revenue.
  • The requirement for non-MSME eligibility is set at Rs. 4 crore (US$ 501,413.20) for drone manufacturers and Rs. 1 crore (US$ 125,353.30) for drone component manufacturers in terms of annual sales revenue.
  • The minimum value addition is set at 40% of net sales.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.