The Central Government, in September, 2021, had approved a production linked incentive scheme (“PLI Scheme”) to catalyse the drones and drone components manufacturing industry in India.[1] The PLI Scheme claimed that the drone component manufacturing industry may witness an investment of over INR 5,000 Crore over a period of three years from 2021. The PLI Scheme further claimed that the annual sales turnover of the drone manufacturing industry may grow to INR 900 Crore in FY 2023-24.
In the recent past, the commercial utility of drones has seen a positive traction, and various industries such as logistics, infrastructure, agriculture and healthcare have tried and adopted the employment of drones. In line with the same, the PLI Scheme claimed that the drone service industry is expected to grow to over INR 30,000 Crore by 2024. Further, the drone-as-a-service industry is expected to generate over 5,00,000 jobs by 2024.
Foreseeing the taking on of the drone industry and the apprehension of risks associated with inappropriate handling of drones, the Ministry of Civil Aviation had released the Draft Drone Rules, 2021[2] as on July 15, 2021 requesting for comments from public. Pursuant to which, on August 26, 2021, the Ministry of Civil Aviation notified the Drone Rules of 2021[3] (“Drone Rules”) to regulate and enable the drone industry to take off.
Key Provisions under the Drones Rules:
1. Applicability: The Drone Rules apply to: (a) persons owning or possessing, or engaged in leasing, operating, transferring or maintaining an unmanned aircraft system in India; (b) all unmanned aircraft systems that are registered in India; and (c) all unmanned aircraft systems that are being operated for the time being, in or over India. However, the Drone Rules are not applicable to unmanned aircraft system belonging to, or used by, the naval, military or air forces of the Union of India.
2. Unmanned Aircraft System: The Drone Rules define Unmanned Aircraft System to mean ‘an aircraft that can operate autonomously or can be operated remotely without a pilot on board’ (“UAS”). In line with the above, the Drone Rules further define Drones to mean ‘an unmanned aircraft system’.
3. Categorisation: The Drone Rules provide for categorisation of drones into: (a) aeroplane; (b) rotocraft; and (c) hybrid unmanned system. The rules further sub-categorize the abovementioned categories into: (a) remotely piloted aircraft system; (b) model remotely piloted aircraft system; and (c) autonomous UAS.
| Categories | Aeroplane | Rotocraft | Hybrid Unmanned System |
| Remotely Piloted Aircraft System | |||
| Model Remotely Piloted Aircraft System | |||
| Autonomous UAS |
4. Classification: The Drone Rules classify the UAS based on the maximum all up weight including payload, as follows:
(a) Nano UAS: weighing less than or equal to 250 grams;
(b) Micro UAS: weighing more than 250 grams, but less than or equal to 2 kilograms;
(c) Small UAS: weighing more than 2 kilograms, but less than or equal to 25 kilograms;
(d) Medium UAS: weighing more than 25 kilograms, but less than or equal to 150 kilograms; and
(e) Large UAS: weighing more than 150 kilograms.
5. Certification: The Drone Rules provide that no person shall operate an UAS in India unless such UAS conforms to a type certificate or is exempted from the requirement of a type certificate. In this regard, the Central Government has the authority to specify the standards for obtaining a type certificate.
In furtherance to the certification, every UAS shall have mandatory safety features installed including: (a) ‘No permission – No takeoff’ hardware and firmware; (b) Real time tracking beacon; and (c) Geo-fencing capabilities.
The Drone Rules exempt the requirement to obtain a type certificate for manufacturing or importing of an UAS. The rules also exempt the following UAS from obtaining a type certificate: (a) a model remotely piloted aircraft system; and (b) a nano UAS.
6. Registration: The Drone Rules provide that no person shall operate an UAS without first registering the same on the digital sky platform and obtaining a unique identification number for the same.
The Drone Rules further provide that in the event of a transfer of UAS by way of sale, lease or any other mode, the details of such transfer shall be provided on the digital sky platform along with applicable fees.
7. Map and Zones: The Central Government is required to publish an airspace made for UAS on the digital sky platform, segregating the entire airspace in India into red zone, yellow zone and green zone. While no permission shall be required to fly a drone in the green zone, no person shall fly a drone in red zone or yellow zone without a prior permission.
8. Remote Pilot Certification: The Drone Rules had initially imposed a requirement on the pilots to obtain a license on the digital sky platform. However, the Ministry of Civil Aviation notified the Drones (Amendment) Rules, 2022[4] whereby the requirement to obtain a license for the pilots have been done away with. Thereafter, under the current regime, a pilot is merely required to avail a training specified from an authorized centre and obtain a certification for being able to operate an UAS. However, no such training is required for: (a) operating a nano UAS; and (b) operating a micro UAS for non-commercial purposes.
9. Research, Development and Testing: Considering that the drone industry is still at a nascent stage, the Drone Rules provide that persons undertaking research and development activities, educational institutions, and startups are exempted from obtaining type certificate, unique identification number, prior permission and remote testing license for operating an UAS.
The Ministry of Civil Aviation has taken a liberal approach in formulating the Drone Rules which can be a blessing for the drone industry, in general, and consequently on various other industries actively employing drones to ease operations. In furtherance to the PLI Scheme, the Directorate General of Foreign Trade passed an order on February 09, 2022[5] restricting the import of drones in India except for R&D, defence and security purposes. This order further elucidates on the intention of the Indian state to promote the manufacturing of drones and drone components in India, and expand the utility of drone-as-a-service industry.
[1] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1755157
[2] https://www.civilaviation.gov.in/sites/default/files/Draft_Drones_Rules_14_Jul_2021.pdf
[3] https://egazette.nic.in/WriteReadData/2021/229221.pdf
[4] https://egazette.nic.in/WriteReadData/2022/233331.pdf
[5] https://content.dgft.gov.in/Website/dgftprod/7d5fd1eb-ad39-4c99-b760-014223657469/Eng-Notification%2054%20dated%209%20Feb%202022%20ITC(HS)%202022%20_with%20Annexures.pdf