The Central Government promulgated “The Drone Rules, 2021” ("the Rules") to control the usage and operation of Drones or Unmanned Aerial Systems, on August 25, 2021, superseding the previous "Unmanned Aircraft System Rules, 2021" ("Prior Rules") ("UASR"). By eliminating the constraints, the Rules are based on the ideas of "trust, self-certification, and non-intrusive monitoring." The Prior Rules' stringent requirements, such as certificate of conformity, certificate of maintenance, operator permissions, import clearance, authorization, and so on, have been repealed by the Rules. The Rules are intended to create a "digital sky platform" ("the Platform"), which is a business-friendly single-window online system with little human intervention and self-generated authorization.
Due to various procedural constraints, the UASR was seen as restricting and not beneficial to the drone market in India. The government has attempted to minimise bureaucratic bottlenecks that were raised by stakeholders in the UASR through the Drone Restrictions and has greatly liberalised the rules. Given India's inherent capabilities in innovation and frugal engineering, as well as significant local demand, the Indian government plans to make India a global drone hub by 2030.
Key Highlights
- Categorisation of drones- There are three types of unmanned aircraft systems: aeroplanes, rotorcraft, and hybrid UAS. The following subcategories have been created: (a) remotely piloted aircraft system (RPAS); (b) model RPAS; and (c) autonomous unmanned aircraft system (UAS). According to the Drone Rules, UAS are categorised according to their maximum all-up weight, which includes payload, ranging from nano UAS (weighing less than or equal to 250 grammes) to big UAS (weighing more than 250 grammes) (weighing more than 150 kilograms). A 'drone' is classified as an 'unmanned aircraft system' ('UAS') under the Drone Rules, while a 'UAS' is defined as a 'aircraft that may operate autonomously or remotely without a pilot on board'. All persons who own, hold, lease, operate, transfer, or maintain a UAS in India, all UAS that are registered in India, and all UAS that are operated over or in India are subject to the Drone Rules.
- Digital sky platform- All UAS clearances will have to be requested through the digital sky platform to ensure minimal intrusions. Unless exempted by the Drone Rules, every operating UAS would be required to get a type certificate and a unique identification number. The government also issued the 'National Unmanned Aircraft System Traffic Management (UTM) Policy Framework' ('UTM Policy Framework') on October 24, 2021, with the goal of managing the interaction between manned aircraft and UAS in terms of safety standards. The digital sky platform has developed an interactive airspace map for UAS operations, which divides India's whole airspace into three zones: (a) red, (b) yellow, and (c) green, with a horizontal resolution of equal to or finer than 10 metres.
- Drone registration- The Rules also require the registration of individual drones on the Platform and the acquisition of a Unique Identification Number, in addition to Drone Certification ("UIN"). UINs can be obtained by submitting Form D-2 to the Platform, along with the required fee and information, such as the unique number of the type certificate to which the UAS adheres. The Rules require anyone who owns a drone that was produced in India or imported into India on or before November 30, 2021, to apply for a UIN within the thirty-one days following that date.
- Production Linked Incentive Scheme- The Indian government approved a PLI plan for drones and drone components on September 15, 2021. The PLI scheme's primary characteristics include an INR 1.2 billion allocation for drones and drone components over three (3) financial years. The overall PLI per manufacturer is set at INR 300 million, and the PLI can be as much as 20% (20%) of the value added by the company. MSMEs and start-ups with annual sales turnovers of more than INR 20 million (for drones) and INR 5 million (for drone components) will be eligible for PLI incentives.
The Rules are one-of-a-kind in Indian law, combining regulation and liberalisation in a seamless manner. They are helped by the digital sky platform, which acts as a one-stop shop for all Rules compliance, cutting red tape in regulation and getting approvals and licences.
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