New Delhi, Sep 16 (IANS): The Centre's PLI scheme for manufacturing of drone and its components is expected to drive in investments worth Rs 5,000 crore into the sector in the next three years, Civil Aviation Minister Jyotiraditya M. Scindia said on Thursday.

According to Scindia, incentives worth Rs 120 crore will be given under the scheme in the next three years.

"This amount is 1.5 times the combined size of the drone manufacturing sector," he said during a press briefing here.

"Over a period of three years, an estimated investment worth Rs 5,000 crore for the drone manufacturing sector will be made which in turn will bring a turnover of Rs 900 crore, besides creating 10,000 job opportunities," he added.

Besides, Scindia also cited the Centre's objective to establish India as a global drone hub by 2030.

On Wednesday, the Centre had approved a PLI scheme which entails an incentive of up to 20 per cent of the value addition for manufacturing of drones and their components.

"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," the Centre had said in a communique on Wednesday.

As per the communique, the government has agreed to keep the PLI rate constant at 20 per cent for all three years, an exceptional treatment given only to the drone industry. In PLI schemes for other sectors, the PLI rate reduces every year.

Furthermore, the communique said the drone services industry is expected to grow to over Rs 30,000 crore in the next three years.