Andhra Pradesh’s Council of Ministers have approved a first of its kind the Andhra Pradesh Drone Policy 4.0 (2024-29) at Amaravati.
This development comes just weeks after the recently held Amaravati Drone Summit 2024 which had attracted significant attention of the industry, academia and other stakeholders.
Following the event the AP Drone Corporation collected feedback from delegates, participants and exhibitors at the summit thereby crafting the drone policy which as per the government reflects the aspirations of the people and the vision of Chief Minister Mr Nara Chandrababu Naidu.
Investment and Infrastructure department Secretary Mr S. Suresh Kumar and AP Drone Corporation CMD Mr K. Dinesh Kumar, along with experts are said to have worked thoroughly on this drone policy.
‘This is the first comprehensive drone policy to be unveiled by any state in India covering the entire ecosystem of drones and allied activities’ said Mr Suresh Kumar speaking to Vizag Industrial Scan.
Elaborating further he said that the policy aims at Fostering the Drone Ecosystem, Empowering Startups and Addressing Local Demand, Capacity Building and Employment Generation, Regulatory Framework and Supportive Environment, Advancing Research and Development and Facilitating Global Market Access for Local Drone Manufacturers.
In the policy the Government of Andhra Pradesh has announced an allocation of Rs. 500 crores to support the implementation of this drone policy throughout the policy period.
In addition, the policy targets to establish a minimum of 100 drone companies to establish manufacturing, research & development, skilling & training and service providers.
Through this establishment, the state aims to attract over Rs. 1,000 Crores investment, to generate Rs.3,000 Crores revenue from drones and its associated ecosystem services and drone exports valued at Rs. 1,000+ Crores said the release.
It also envisions to establish 20 drone remote pilot training organizations, 50 Centers of Excellences at Engineering, ITIs and Polytechnic Institutions.
Simultaneously the policy provisions to train 25,000 drone pilots, creation of 40,000 jobs in the sector.
Public Service Delivery through Drone Technology
The Government of Andhra Pradesh shall also develop a Sandbox, a repository of all government data, to be made available to all the stakeholders to encourage innovation drone-based solutions for public use.
This policy seeks to make government services more accessible to the public by leveraging drone technology. Various government departments and sectors will be required to incorporate drones to improve service delivery and convenience for citizens. To oversee this initiative, a dedicated drone innovation officer will be appointed in each department. This officer will be responsible for exploring and managing the use of drones to optimize government operations and enhance public service delivery.
Orvakal as a Drone Hub
The government also announced a Drone City in 300 Acres at Orvakal in Kurnool district, first of its kind in the Indian territory.
‘The work on this is going to start very soon’ informed Mr Suresh Kumar.
The proposed Drone City in Orvakal, Kurnool district will act as a drone ecosystem hub with common user facilities for Research & development, Manufacturing and Testing of drone technology. The common facility will be developed and run by a committee of experts drawn from the industry, academia, service providers and user departments.
Incentives
The policy has been formulated to offer a 20 per cent subsidy on the capital investment for companies registered or headquartered in Andhra Pradesh. The goal as per the government is to achieve revenue exceeding Rs.3,000 crores from drone manufacturing and services.
By prioritizing and incentivizing drone manufacturing, R&D and Skill training, the government aims for significant growth in drone exports from the state. The initial target is to achieve exports worth Rs.1,000 crores and to aim for an annual growth of 20% in subsequent exports.
Subsidy on Electricity Consumption
Companies and industries that come forward to invest in the drone manufacturing sector will also receive subsidies on electricity consumption. The government will provide a subsidy of Rs.1 per unit on electricity rates, capped at Rs.1 lakh per year for two years. Additionally, there will be a complete exemption of 100 percent SGST for initial three years on product sales, up to 100% exemption of land conversion charges, change of Land Use and Layout Approval. The policy also provides 50% reduction on land lease rates for 3 years.
Single Window System
A user-friendly interface will be provided for businesses to submit applications related to proof of concept (POC) information, collaboration opportunities, and any required state-level permissions, which will be managed at the district level by the Collector or other designated authorities. A dedicated portal will be developed for this purpose, featuring an approval system for companies, certification for use cases, and access to both national and international market data. Additionally, the portal will offer access to government data to support future innovations, a key benefit of the initiative.
Encouragement for Research
The government has also set up a strong foundation to promote research and development in the drone sector. It has decided to provide adequate incentives for new discoveries in drone research at educational institutions. As part of this initiative, educational institutions undertaking drone research will be granted Rs.20 lakhs as a research grant.
