The ministry of civil aviation has invited applications for incentives from the makers of drones and their components.
The nascent drone industry will get Rs 120-crore production-linked incentives (PLI) over the next three years under the scheme.
The scheme was notified on September 30, 2021.
Under the scheme, the firms will get incentives of 20 per cent of value addition in making a drone or its parts.
Calculations for value addition will be done on the basis of a formula: annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components.
Manufacturers must make value addition of at least 40 per cent in production. The eligibility norm for MSME and startups is at nominal levels, the government said.
More than one company within a group may file separate applications under this PLI scheme to be evaluated independently. Total PLI payable to all applicants in the group will be capped at 25 per cent of the financial outlay under this scheme, the aviation ministry said.
The PLI scheme for the drone industry includes airframe, propulsion systems (engine and electric) and flight control modules.
It covers communications systems such as radio equipment, transponders, cameras and sensors.
Spraying systems and related payload have also been brought under the ambit of the scheme.
Detecting and avoiding systems, emergency recovery systems, trackers and other components critical for safety and security will be covered by the scheme.
Applications must be submitted by March 31.
Agri use
Three concerned departments of the government are working jointly to fast track drone adoption in the farm sector, according to a senior official of the Directorate of Plant Protection, Quarantine and Storage (DPPQS) Ravi Prakash.
The Central Insecticide Board and Registration Committee (CIB&RC) under the DPPQS has received applications from eight crop protection companies seeking permission for conducting trials of drones, he said.