PLI Scheme For Drones And Drone Components

PLI Scheme For Drones And Drone Components

Subject: Science & Tech

Context- The Ministry of Civil Aviation (MoCA) has released the first provisional list of 14 beneficiaries under the Production-Linked Incentive (PLI) Scheme for drone and drone components. These include five drone manufacturers and nine drone component manufacturers.

Concept-

• The ministry invited applications from eligible manufacturers on 10th March 2022 and the last date for submission was 31st March 2022.
• The eligibility criteria for the PLI scheme for drones and drone components includes an annual sales turnover of INR 2 crore for drone companies and INR 50 lacs for drone components manufacturers; and value addition of over 40% of sales turnover.

PLI Scheme for Drones:

• The PLI scheme for drones and drone components was notified on 30th September 2021.
• Under the scheme, a total incentive of INR 120 crore is spread over three financial year which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21.
• The PLI rate is 20% of the value addition which is one of the highest among other PLI scheme.
• A unique feature of drone PLI scheme is that the manufacturers who fail to meet the value addition threshold in 2021-22 will be allowed to claim the lost incentive in the subsequent year if they make up the shortfall in 2022-23.

About Drones:

• It is a layman terminology for Unmanned Aircraft (UA).
• Originally developed for the military and aerospace industries, drones have found their way into the mainstream because of the enhanced levels of safety and efficiency they bring.
• Remotely piloted aircraft have been divided into five categories based on their weight (existing rules)-
  • Nano: Less than or equal to 250 grams.
  • Micro: From 250 grams to 2kg.
  • Small: From 2 kg to 25kg.
  • Medium: From 25kg to 150kg.
  • Large: Greater than 150kg.

Draft Drone Rules, 2021

• Abolish the need for various approvals, including certificate of conformance, certificate of maintenance, import clearance, acceptance of existing drones, operator permit, authorisation of R&D organisation and student remote pilot licence.
• Digital Sky Platform: The government will be developing a digital sky platform that will have an interactive airspace map dividing the country into green, yellow, and red zones.
• It will provide a secure and a scalable platform that supports drone technology frameworks, such as NPNT (no permission, no take-off), designed to enable flight permission digitally and manage unmanned aircraft operations and traffic efficiently.
• Reduced Airport Perimeter: The draft rules reduced the airport perimeter from 45 km to 12 km.
• Drone Corridor: The Ministry will also facilitate development of drone corridors for cargo deliveries and a drone promotion council will be set up to facilitate a business-friendly regulatory regime.
• Safety Features: The draft rule also provides for safety features such as real-time tracking beacon, and geo-fencing, which are expected to be notified in future and a six-month lead time will be provided for compliance.
• Increased Coverage of Drones: The coverage has been increased from 300 kg to 500 kg and will cover drone taxis, while the Issuance of Certificate of Airworthiness has been delegated to Quality Council of India and certification entities authorized by it.