Big boost for drone manufacturers! Government issues Rs120-cr PLI scheme notification; Zen Technologies shares hit 5% upper circuit

The government on Friday issued a notification regarding Rs 120 crore production-linked incentive scheme for drone manufacturers. It’s expected that the drone companies are likely to invest around Rs 50,00 crore on the back of this scheme.

Zen Technologies was the only listed company in this segment until Paras Defence and Space Technologies shares made a market debut on Friday. 

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The shares of Zen Technologies hit an upper circuit of 5 per cent to Rs 215.45 per share on the BSE amid this positive news related to drone PLI. The stock had hit a 52-week high of Rs 237.35 per share after the government through media briefing had announced PLI scheme for drone manufacturers.

Since hitting a new 52-week on September 15, 2021, the counter has been corrected and is back on its trajectory of growth. In the last one month, the scrip has gained over 85 per cent on the BSE as compared to a 2.7 per cent rise in the S&P BSE Sensex during the same period.

#BreakingNews | #ZenTech के लिए बड़ी खबर...#Drone उद्योग के लिए ₹ 120 करोड़ की PLI स्कीम का
नोटिफिकेशन हुआ जारी...

ड्रोन निर्माण में PLI करीब ₹ 5000 करोड़ का कर सकती हैं
निवेश...#JustIn | #PLIScheme | @AnilSinghvi_ pic.twitter.com/Vw0a8EoBMY

— Zee Business (@ZeeBusiness) October 1, 2021

Market analyst Siddharth Sedani says, this news is a game-changer for all the drone manufacturer companies in India, the sector itself is buzzing and led with technology. He believes drones would change the delivery pattern/system in the country.

Civil Aviation Minister Jyotiraditya Scindia, apprising the media about the important features of the PLI Scheme, had said that under the PLI scheme, incentives of Rs 120 crore will be given in the next 3 years. This amount is 1.5 times the combined size of the manufacturing drone sector.

Over a period of three years, an estimated investment worth Rs 5,000 crore for manufacturing sector drones will be done which in turn will bring a turnover of Rs 900 crore, and 10,000 job opportunities will be created, the minister had said while speaking to media earlier last month. 

He further added that our objective is to establish India as a global drone hub by 2030 and the Ministry of Civil Aviation is committed to facilitate industry, service delivery, and consumers in achieving the aforesaid target.