The Union Cabinet has approved the Production Linked Incentive Scheme for Drone Manufacturers.
The Union Cabinet on Wednesday approved the Production Linked Incentive (PLI) scheme for drones and drone components under which an investment of about Rs 5,000 crore is expected over the next three years. Under the scheme, Rs 120 crore will be given to the manufacturers in the next three years.
Also manufacturers of drones and drone components will be incentivized up to 20 per cent of the value addition made by them.
Information and Broadcasting Minister Anurag Thakur told mediapersons after the cabinet meeting that the scheme will also encourage start-ups that are involved in the production of drones as well as help in generating 10,000 direct jobs in this sector.
The annual turnover of the drone production industry is expected to grow from Rs 60 crore recorded in 2020-21 to around Rs 900 crore by 2023-24.
The eligibility criteria for Micro, Small and Medium Enterprise (MSME) startups in terms of annual sales turnover has been kept at Rs 2 crore for drones and Rs 50 lakh for drone components.
The eligibility criteria for non-MSME companies in terms of annual sales turnover has been kept at Rs 4 crore for drones and Rs 1 crore for drone components.
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