More than one company within a Group of Companies may file separate applications under this PLI scheme and the same shall be evaluated independently
The Ministry of Civil Aviation has invited applications from drone industry for the Production Linked Incentive (PLI) scheme for drone manufacturing.
The application form is of one page only, along with the certificate from the head of organisation and the statutory auditor.
More than one company within a Group of Companies may file separate applications under this PLI scheme and the same shall be evaluated independently.
However, the total PLI payable to such applicants shall be capped at 25 percent of the total financial outlay under this PLI scheme.
The scheme covers developers of drone-related software too.
PLI for a manufacturer shall be capped at 25 percent of the total annual outlay. This will allow widening the number of beneficiaries, the Ministry said.
In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, she will be allowed to claim the lost incentive in the subsequent year if she makes up the shortfall in the subsequent year.
The PLI scheme, which was notified on last year in September, provides a total incentive is Rs 120 crore spread over three financial years, which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21.
The PLI rate is 20 percent of the value addition, one of the highest among PLI schemes.
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. PLI rate has been kept constant at 20 percent for all three years.
As per the scheme, the Minimum value addition norm is at 40 percent of net sales for drones and drone components instead of 50 percent. The eligibility norm for MSME and startups is at nominal levels.
The deadline for submission of the application form is 2359 hours on 31st March 2022. PLI application form.
