Paras Defence, Zensar technologies shares in focus after Govt invites applications from drone industry for PLI scheme

Government invites applications from drone industry for PLI scheme; Paras Defence, Zensar technologies shares gain. 

Shares of Paras Defence and Zensar technologies gained in Friday's intraday trade after the government invited applications from drone industry for Production Linked Incentive (PLI). 

Paras Defence Technologies, a defence product manufacturer, gained nearly 2% to hit day's high of Rs 657.05 a share on the BSE after the government extended invitation for PLI scheme. At 12.15 pm, shares of Paras Defence Technologies with gains of Rs 9.70 to Rs 652.90 per share on the BSE. 

Zensar technologies, which traded on day's high of Rs 368.10, was trading marginally higher by Rs 1 to Rs 365.30 per share on the BSE.  

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PLI scheme was notified on 30th September 2021. The total incentive is Rs 120 crore spread over three financial years, which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21.  

The PLI rate is 20% of the value addition, one of the highest among PLI schemes.  

"The value addition shall 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. PLI rate has been kept constant at 20% for all three years, an exceptional treatment for drones," read a statement from the Ministry of Civil Aviation.  

Coverage of the scheme includes developers of drone-related software also. PLI for a manufacturer shall be capped at 25% of total annual outlay. This will allow widening the number of beneficiaries. In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, he/she will be allowed to claim the lost incentive in the subsequent year if she makes up the shortfall in the subsequent year. 

To give a boost to government's 'Make in India' plan, as many as 15 drone schools across the country have been approved by DGCA as on 28th February 2022, said the ministry. 

Earlier, Paras Defence and Space Technologies became the most successful IPO last year with subscription of 302.46 times in September 2021.