Financial incentives
1. With the aim to boost domestic manufacturing of drone and drone components a production linked scheme was notified on 30th September 2021.
2. A total incentive of INR 120 crore which was nearly double of the present industry revenue was allocated for three financial years.
3. The minimum value addition norm was kept 40% of net sales for drones and drone components instead of 50% as defined in other PLI schemes.
4. A constant rate of 20% incentive was notified which is one of the highest among other PLI schemes.
5. Eligibility norm for MSME and startups was kept at nominal levels to benefit early stage startups.
6. PLI for a manufacturer is capped at 25% of total annual outlay to allow widening the number of beneficiaries under the scheme.
7. In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, they are allowed to claim the lost incentive in the subsequent year if they make up the shortfall in the subsequent year.