Credit and Finance for MSMEs: The Central Government, under the production-linked incentive (PLI) scheme, will offer incentives worth Rs 120 crore to manufacturers of drones and its component makers during the next three years.
The production-linked incentive (PLI) scheme for drones and drone components was notified on September 30, 2021.
According to the report by Mint, a provisional list of 23 beneficiaries for the PLI scheme included 12 drone manufacturers and 11 drone component manufacturers.
The 12 drone manufacturers to benefit from the scheme are: Bengaluru-based Asteria Aerospace; Chennai-based Dhaksha Unmanned Systems; Noida-based EndureAir Systems; Chennai-based Garuda Aerospace; Mumbai-based Ideaforge Technology; Roorkee-based Roter Precision Instruments; Bengaluru-based Aarav Unmanned Systems; Gurugram-based Omnipresent Robot Technologies; Noida-based Raphe Mphibr; Gurugram-based IoTechWorld Avigation; Pune-based Sagar Defence Engineering and Bengaluru-based Throttle Aerospace Systems.
The companies shortlisted for drone component manufacturing are: Hyderabad-based Adani-Elbit Advanced Systems India; Bengaluru-based Alpha Design Technologies; Belagavi-based Servocontrols Aerospace India; Hyderabad-based Dynamake Engineering; Mumbai-based Imaginarium Rapid; Bengaluru-based SASMOS HET Technologies; Bengaluru-based Absolute Composites; Bengaluru-based Valdel Advanced Technologies; Bengaluru-based ZMotion Autonomous Systems; New Delhi-based Adroitec Information Systems and Chennai-based Zuppa Geo Navigation Technologies.
In response to a question in the Rajya Sabha, General (Retd) VK Singh, Minister of State for Civil Aviation, said that the government is offering a total incentive of Rs 120 crore for the next three financial years beginning from FY2021–2022. He also stated that the incentive for 2021–2022 will be payable in 2022–2023 post examination of the financial performance of the beneficiary companies.
The eligibility criteria is different for MSME and non-MSME companies, said the report. MSMEs need to have an annual sales of Rs 2 crore to be eligible for PLI benefit for drone manufacturers and drone component manufacturers need yearly sales revenue of Rs 50 lakhs and above.
Non-MSME drone manufacturers should have yearly sales of Rs 4 crore and non-MSME drone component manufacturers should have Rs 1 crore of annual sales revenue to avail PLI benefits.
For both MSMEs and non-MSMEs, there should be a value addition of at least 40 per cent of net sales.