New Delhi [India], September 16 (ANI): Civil Aviation Minister Jyotiraditya Scindia said on Thursday that incentives of Rs 120 crore would be given in the next three years under the PLI scheme for drones and drone components.
"Under the PLI scheme, incentives of Rs 120 crore will be given in the next three years. This amount is 1.5 times the combined size of the manufacturing drone sector. Over a period of three years, 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," the minister told reporters here.
He said 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 target.
The Union Cabinet approved the Production-Linked Incentive (PLI) scheme for drones and drone components on Wednesday.
An official release said the incentive for a manufacturer of drones and drone components shall be as high as 20 per cent of the value addition. The value addition shall be calculated as the annual sales revenue from drones and drone components minus the purchase cost of drone and drone components.
The release said the government, has agreed to keep the PLI rate constant at 20 per cent 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. (ANI)