E-Paper
Centre increases incentives by 37.5% to boost drone manufacturing
The central government has increased the amount of business incentives to boost drone manufacturing in the country by as much as 37.5% to ₹165 crore to be spent over three years, two officials said.
The central government has increased the amount of business incentives to boost drone manufacturing in the country by as much as 37.5% to ₹165 crore to be spent over three years, two officials said.
“The government is focused on making India a drone hub by 2030. It is working hard towards the goal and has till date established 109 training organisations, issued 10,603 remote pilot certificates, 22,943 unique identification numbers for registered drones and 67 DGCA-approved type certificate for drone models,” one of the officials said.
The production-linked incentive scheme for drones and drone components was notified on September 30, 2021, to promote local industry, reduce import dependency and generate employment. It had an initial outlay of ₹120 crore for three years, which has now been increased significantly.
The federal budget presented on Tuesday showed the incentive scheme will receive a higher allocation of ₹57 crore in the current financial year compared to ₹33 crore in 2023-24. The higher allocation is in sync with government’s plan to make India a hub for drone manufacture by 2030.
India plans to become a leading global drone centre by 2030 with relaxed rules and incentives to support this goal, the Economic Survey 2023-24 said. Recent updates include more training centres, remote pilot licenses, registered drones and approved drone models by the Directorate General of Civil Aviation, the sector regulator.
India’s drone industry, which has been growing rapidly, is getting a lot of attention lately because of its many uses in both civilian and national security areas. Drones, or unmanned aerial vehicles, provide benefits in areas such as farming, health care, emergency response, surveillance and defence.
“While the impact of drones in civil space is immense, its use in the defence space is critical, as India works to keep its borders safe,” a second official said. Both officials declined being named.
There are over 400 startups now in the field, they said. Extending the incentive scheme will allow more companies to join in and benefit. This scheme will boost local production, the officials said.
The civil aviation watchdog has approved 116 remote pilot training organisations, which have collectively issued 16,000 remote pilot certificates so far, according to the civil aviation ministry. The DGCA has additionally type certified 70 unmanned aircraft system models, the ministry said on Friday. There are currently 48 Indian companies engaged in manufacturing drones in the country, it said.
Under the production-linked incentive scheme managed by the ministry, 23 small enterprises were shortlisted for remote pilot training, 11 of which were in the category of drone component manufacturer, junior aviation minister Murlidhar Mohol said in a written reply on July 22 to a question raised in the Rajya Sabha.
“A lot more needs to be done by the government to expand usage of drones and increase in allocation to ₹165 crores seems on the right direction. The government needs to ensure that a substantial portion of it is aligned to local manufacturing of drones, encouraging operations or training facilities,” said Mark Martin, CEO and founder of Martin Consulting, an aviation advisory firm.
