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  • Writer's pictureGDV Consultancy

Production Linked Incentive Scheme for Drones and Drone components (PLID):


A. All manufacturers of drones in India

As per drone policy 2021,

“Drone” means an unmanned aircraft system;

Categorisation of unmanned aircraft system.—

(1) The unmanned aircraft system shall be categorized into the following three categories, namely:––

(a) aeroplane;

(b) rotorcraft; and

(c) hybrid unmanned aircraft system.

(2) The aeroplane, rotorcraft and hybrid unmanned aircraft system shall be further sub-categorised as follows:––

(a) remotely piloted aircraft system;

(b) model remotely piloted aircraft system; and

(c) autonomous unmanned aircraft system.

The unmanned aircraft system shall, based on the maximum all-up weight including payload, be classified as follows:–

(a) Nano unmanned aircraft system: weighing less than or equal to 250 grams;

(b) Micro unmanned aircraft system: weighing more than 250 grams, but less than or equal to 2 kilograms;

(c) Small unmanned aircraft system: weighing more than 2 kilograms, but less than or equal to 25 kilograms;

(d) Medium unmanned aircraft system: weighing more than 25 kilograms, but less than or equal to150 kilograms; and

(e) Large unmanned aircraft system: weighing more than 150 kilograms.

B. All manufacturers components of drones in India

a) Airframe, propulsion systems (engine and electric), power systems, batteries and associated components, launch and recovery systems;

b) Inertial Measurement Unit, Inertial Navigation System, flight control module, ground control station and associated components;

c) Communications systems (radio frequency, transponders, satellite-based etc.);

d) Cameras, sensors, spraying systems and related payload etc.;

e) 'Detect and Avoid’ system, emergency recovery system, trackers etc. and other components critical for safety and security.

Minimum annual sales turnover for claiming PLI:

Indian MSME and


Indian Non-MSME

Drone (INR Cr)

Component (INR Cr)

Drone (INR Cr)

Component (INR Cr)





Computation of the incentive:

Illustrative PLI calculation for a manufacturer (for sample year FY 2021-22)

Claim year

Sales - Net of GST (INR cr)

Purchase -

Net of GST

(INR cr)

Eligible value

addition in India

(INR cr)

PLI rate for

value addition




(INR cr)

FY 21-22






Financial outlay

The total financial outlay of the PLI scheme for drones and drone components is INR 120 crore (Rupees one hundred and twenty crore only). The estimated payout schedule over a period of three financial years.

Total PLI per manufacturer is capped at INR 30 crores which is 25% of the total financial outlay of INR 120 crores.


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