Lok Sabha Question No. 4624 (UNSTARRED), answered on 2022-03-31
Subject: PLI for Drones
Ministry: CIVIL AVIATION
Asked by: Shrirang Appa Barne, Prataprao  Jadhav, Bidyut Baran Mahato, Sambhajirao Mane Dhairyasheel, Sanjay Sadashivrao Mandlik, Sudheer Gupta

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA

UNSTARRED QUESTION NO. : 4624 (To be answered on the 31 st  March 2022)

## PLI FOR DRONES

4624. SHRI SHRIRANG APPA BARNE SHRI PRATAPRAO JADHAV SHRI BIDYUT BARAN MAHATO SHRI DHAIRYASHEEL SAMABHAJIRAO MANE SHRI SANJAY SADASHIVRAO MANDLIK SHRI SUDHEER GUPTA

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a)  whether  the  Government  has  invited  application  from  drone manufacturer/industry for Production Linked Incentive (PLI) and if so, the
- details thereof;
- (b) the details of incentives likely to be given by the Government to the drone
- manufacturers/industry under PLI scheme;
- (c) the response shown by the drone manufacturer/industry in this regard;
- (d)  whether  the  Government  has  set  any  deadline  for  submission  of applications  and  if  so,  the  details  thereof;
- (e) whether the Government has undertaken a series of measures to promote India's drone industry; and
- (f) if so, the details and the outcome thereof?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(GEN. (DR) V. K. SINGH (RETD))

(a) to (d) The Production Linked Incentive (PLI) scheme for drones and drone components were notified on 30th September 2021 and the Government has invited applications from drone manufacturers for the PLI scheme on 10th March 2022.

The Government is providing a total incentive of INR 120 crore spread over three financial years to the drone manufacturers/ industry under the PLI scheme. The PLI rate is 20% of the value addition over three financial years. PLI for a manufacturer shall be capped at 25% of total annual outlay.

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. In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, the manufacturer will be allowed to claim the lost incentive in the subsequent year if the manufacturer makes up the shortfall in the subsequent year. As on 22nd of March 2022, one application has been received from the drone manufacturers under the PLI scheme. The last date for submission of application form is 31st March 2022.

(e) & (f) The Central Government has undertaken a series of reform measures to promote India's upcoming drone industry which are as follows: (i)Liberalised Drone Rules, 2021 notified on 25th August 2021. (ii)  Drone Airspace Map published on 24th September 2021, opening up nearly 90% of Indian airspace as a green zone for drone flying up to 400 feet. (iii) Production-Linked Incentive (PLI) scheme for drones notified on 30th September 2021. (iv) UAS Traffic Management (UTM) Policy Framework published on 24th October 2021. (v)  Monetary  grant  program  for  purchase  of  agricultural  drones  was announced by the Union Agriculture Ministry on 22nd January 2022. (vi) All five application forms under Drone Rules, 2021 made online on the DigitalSky Platform on 26th January 2022 (vii) Drone certification scheme notified on 26th January 2022, making it easier to obtain type certificate by drone manufacturers. (viii)Drone import policy notified on 9th February 2022, banning import of foreign drones and freeing up import of drone components. (ix)  Drone  (Amendment)  Rules,  2022  notified  on  11th  February  2022, abolishing  the  requirement  of  a  drone  pilot  licence.

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