News Analysis India

Tag: drone industry

  • Indian drone industry will have a turnover of up to Rs 15,000 crore by 2026: Jyotiraditya Scindia

    By PTI

    NEW DELHI: The Indian drone industry will have a total turnover of up to Rs 15,000 crore by 2026 as the government has given a major boost to the sector with the production-linked incentive (PLI) scheme announced on Wednesday and liberalised rules implemented last month, Civil Aviation Minister Jyotiraditya Scindia said on Thursday.

    The Civil Aviation Ministry on Wednesday approved a PLI scheme for drones and drone components with an allocation of Rs 120 crore spread over three financial years. The PLI scheme comes as a follow-through of the liberalised Drone Rules, 2021, released by the Centre on August 25.

    In the press briefing, Scindia said on Thursday, “With Drone Policy (Rules) and Drone PLI scheme, we have an aim that drone manufacturing companies in India should reach a turnover of Rs 900 crore in the coming three years.”

    Currently, Indian drone manufacturing companies have a turnover of approximately Rs 80 crore, he mentioned. He said the three parts of the entire value chain in the drone sector are hardware (drone manufacturer), software and service delivery.

    “If you combine turnover of all three parts of the drone sector, it is our estimate that by 2026, it will stand at USD 1.8 billion. This means that this industry will have a turnover of approximately Rs 12,000-Rs 15,000 crore by then,” he stated.

    Under the PLI scheme, the incentive for a manufacturer of drones and drone components will be 20 per cent of the value addition made by the company during the next three years. The value addition should be calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components, it stated.

  • Government approves Rs 26,000 crore PLI scheme for automotive, drone industries

    By PTI

    NEW DELHI: The Union Cabinet on Wednesday approved a Rs 26,058 crore production linked incentive (PLI) scheme for auto, auto-components and drone industries to enhance India’s manufacturing capabilities, Union Minister Anurag Thakur said on Wednesday.

    The PLI scheme will incentivize the emergence of advanced automotive technologies’ global supply chain in India.

    Incentives worth Rs 26,058 crore will be provided to industry over five years, the minister told reporters after the Cabinet meeting.

    It is estimated that over a period of five years, the PLI scheme for the automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs, Thakur said.

    The PLI scheme for automobile and drone industries is part of the overall announcement of PLI schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore.

    The scheme for the auto sector envisages overcoming the cost disabilities to the industry for the manufacture of advanced automotive technology products in India.

    The incentive structure will encourage industry to make fresh investments for the indigenous global supply chain of Advanced Automotive Technology products, Thakur said.

    The scheme for the auto sector is open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business.

    The scheme has two components – Champion OEM Incentive Scheme and Component Champion Incentive Scheme.

    The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments, the minister said.

    The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors.

    This PLI scheme for automotive sector along with the already launched PLI scheme for Advanced Chemistry Cell (Rs 18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

    Further the PLI scheme for the drones and drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology.

    A product-specific PLI scheme for drones with clear revenue targets and a focus on domestic value addition is key to building capacity and making these key drivers of India’s growth strategy.

    The scheme will over a period of three years, lead to investments worth Rs 5,000 crore, an increase in eligible sales of Rs 1500 crore and create additional employment of about 10,000 jobs.