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India allocates ₹120cr to incentivize drone manufacturing
September 17, 2021
The Indian government on Wednesday approved to allocate ₹120 crores spread over the next three financial years towards production linked incentives (PLI) for manufacturing drones and their components in the country.
Industry specialists say the move could be a major shot for the local drone industry, particularly when found pair with the highly liberal new drone rules. It very well may be a vital driver for the Indian market where domestic drone organizations have so far generally relied upon bringing in various parts from China to build their drones.
The incentive for the manufacturing of drones and drone parts will be just about as high as 20% of the value addition made by them. The worth expansion will be determined as the yearly deals income from drones and drone components (net of GST) less the purchase cost (net of GST) of drone and drone components.
The government has kept the PLI rate consistent at 20% for each of the three years, which is novel to the drone business. In PLI plans for different areas, the rate reduces each year.
The proposed residency of the PLI plot is three years starting in FY 2021-22 and will be expanded or redrafted after studying its impact in consultation with the industry.
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