Boost for Drone Manufacturing: 14 Firms Shortlisted for PLI Scheme

The Ministry of Civil Aviation announced on Wednesday that 14 drone companies, including Adani’s joint venture with Israeli firm Elbit and IdeaForge Technology, have been selected as beneficiaries of the production-linked incentive (PLI) scheme aimed at promoting drone manufacturing in India.

Overview of the PLI Scheme

Introduced last year, the PLI scheme offers incentives equivalent to 20 percent of the value addition made by manufacturers of drones and drone components over the next three years. Value addition is determined by subtracting the purchase cost of drones and components from the annual sales revenue, net of GST.

List of Beneficiaries

The ministry released the names of the selected beneficiaries, which include prominent drone manufacturers and component suppliers. Notable among them are Dhaksha Unmanned Systems, IdeaForge Technology, IoTechWorld Aviation, Omnipresent Robot Technologies, and Raphe Mphibr, among others.

Drone Manufacturers

Five drone manufacturers have been selected for the PLI scheme, including IdeaForge Technology, known for its expertise in drone technology and innovation.

Drone Component Suppliers

Nine companies specializing in drone components have been chosen for the PLI scheme, including Adani-Elbit Advanced Systems India, Alpha Design Technologies, and ZMotion Autonomous Systems, among others.

Expansion of Beneficiaries

The ministry indicated that the list of beneficiaries may expand further as additional manufacturers meet the eligibility criteria. The final list of PLI beneficiaries is expected to be released by June 30 after a thorough review of financial results and other specified documents.

Eligibility Criteria and Scheme Background

To qualify for the PLI scheme, drone companies must have an annual sales turnover of Rs 2 crore, while drone component manufacturers must have a turnover of Rs 50 lakh. Additionally, beneficiaries must demonstrate a value addition of over 40 percent of their sales turnover.

Government Support and Future Projections

The PLI scheme, introduced in September 2021, complements the liberalized Drone Rules, 2021, and is aimed at fostering growth in the Indian drone industry. Aviation Minister Jyotiraditya Scindia has projected a turnover of up to Rs 15,000 crore for the Indian drone industry by 2026, underscoring the government’s commitment to supporting the sector’s development.