PLI SCHEME FOR DRONE INDUSTRY

PLI SCHEME FOR DRONE INDUSTRY

Context:

The Union Cabinet cleared a production-linked incentive (PLI) scheme to make India a drone hub by 2030.

About PLI Scheme for the Drones:

• The Scheme for the Drones and Drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology.
• The amount allocated for the PLI scheme for drones and drone components is INR 120 crore spread over 3 financial years.
• Manufacturers will get an incentive of up to 20% on the value addition made by them.
• The Government has agreed to keep the PLI rate constant at 20% for all 3 years, an exceptional treatment given only to the drone industry. In PLI schemes for other sectors, the PLI rate reduces every year.
• The Government has agreed to increase the coverage of the incentive scheme to include developers of drone-related IT products also.
• The PLI for the Drones and Drone components industry, will over a period of 3 years, lead to investments worth ₹ 5,000 Crore, an increase in eligible sales of ₹ 1500 crore and create additional employment of about 10,000 jobs.