Centre Working On New PLI Scheme For Drone Sector

SUMMARY

The new PLI scheme worked by the government would be more effective in terms of implementation, documentation and other aspects

The civil aviation secretary marked that the drone sector has to be segregated into three segments, in terms of civilian use, security or defence forces use, and the rogue or unregulated use of drones

Centre introduced the PLI scheme for drones in 2021 with an outlay of INR 120 Cr and a tenure of three years, commencing from 2021-22

Following the end of the production linked incentive (PLI) scheme for the drone sector, the government is reportedly planning to come out with a new PLI scheme.

Speaking during a conference organised by industry body FICCI, civil aviation secretary Vumlunmang Vualnam said that the new PLI scheme would be more effective in terms of implementation, documentation and other aspects, news agency PTI reported.

The secretary said that some of the procedures under the first PLI scheme were onerous for startups and micro, small and medium enterprises (MSMEs).

Vualnam said that the drone sector has to be segregated into three segments – those for civilian use, security or defence forces use, and the rogue or unregulated use of drones.

“We have to be cognisant of that… counter drone technologies are being developed,” he was quoted as saying.

The Centre introduced the PLI scheme for drones in 2021 with an outlay of INR 120 Cr and a tenure of three years, commencing from 2021-22. The tenure of the scheme has ended now.

Under the scheme, the civil aviation ministry disbursed INR 30 Cr to the beneficiaries in FY23.

The Centre has taken a number of steps over the last few years, including liberalisation of the drone regime, with an eye on making India a global drone hub by 2030.

This has spawned a number of drone startups, including Garuda Aerospace, Aereo, Skye Air, among others, in the country over the last few years. These startups have also been attracting a lot of investor interest.

For instance, former Indian skipper MS Dhoni increased his investment in Chennai-based drone startup Garuda Aerospace a week ago.

Meanwhile, Bengaluru-based drone startup Aereo raised $15 Mn in its Series B funding round led by 360 ONE Asset in July to expand its aerial intelligence solutions for capital asset management.

As per Inc42 data, India is home to over 200 drone tech startups and these startups have raised a funding of over $140 Mn since 2014. The country’s drone tech market is expected to clock a CAGR of 22% between 2022 and 2030 to reach a size of $13 Bn at the end of this period.