According to industry analysts, the production-linked incentive (PLI) plan for drones would not only promote domestic drone and drone component manufacturing but will also bring in new use cases and applications across different industries.
The Union government announced a PLI programme for drones and drone components on Wednesday, with a budget of Rs 120 crore spread over three years.
The approval of the PLI programme for drones, according to Paras Jain, founder, and CEO of Indo Wings, would offer enormous advantages to all sectors of the economy. “…this would expand the number of verticals in which drones might be used…
It was heartening to see the government take into account startups in the drone ecosystem, as shown by the fact that the income threshold for MSMEs ( Micro, Small & Medium Enterprises) to get PLIs has been reduced to Rs 2 crore “he said
To increase the number of beneficiaries, the Centre has maintained the qualifying criteria for MSME and startups in terms of annual sales turnover at a low level — Rs 2 crore (for drones) and Rs 50 lakh (for drone components).
Airframes, propulsion systems, power systems, batteries, inertial measurement unit, flight control module, ground control station, communication systems, cameras, sensors, spraying systems, emergency recovery systems, and trackers are all covered under the PLI scheme.
The PLI Scheme for the drones and drone components sector, according to the government, covers the strategic, tactical, and operational applications of this innovative technology. It had been said that the PLI programme for the Drones and Drone Components sector will result in investments of Rs 5,000 crore, a rise in eligible sales of Rs 1,500 crore, and increased employment of approximately 10,000 jobs over a three-year period.
The finest regulatory framework for R&D, operations, and local manufacture of drones has been established, according to Vipul Singh, co-founder, and CEO of Aarav Unmanned Systems.
“On the other hand, the government is opening up a vast market via emergency procurements, large-scale initiatives like SVAMITVA, and encouraging private businesses to make use of drone technology’s potential,” he said.
The PLI programme for the drones sector, according to the industry organisation Drone Federation of India (DFI), would encourage entrepreneurs to work on developing drones, components, and software for the worldwide market.
“The fact that the PLI programme for drones provides a 20% incentive…to manufacturers and software developers indicates that the government would go to any length to promote the drone sector,” stated Smit Shah, Director of DFI.
DFI claims to represent more than 2,000 drone pilots, as well as 120 service providers, 90 manufacturers, and ten training organisations.
The PLI plan, according to RattanIndia Enterprises, which just made a strategic investment in Matternet, a US-based drone business, covers the strategic, tactical, and operational applications of this innovative technology.
It had stated that a product-specific PLI programme for drones with defined revenue goals and an emphasis on domestic value addition is critical to developing capacity and making them major drivers of India’s development plan and that the PLI scheme will be a significant boost to this “sunrise industry.”
Source: Business Standard