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Drone License Guide: Compliance Challenges for Drone-Based Businesses in India

Emerging technological infrastructure in the country such as 5G network and robotic technologies, several industries are witnessing a transformation. Drone manufacturers and operators are the class of businesses that are fully utilizing these technologies.

A Drone is a small or medium-sized unmanned aircraft. Drone is a commonly used term for unmanned aerial vehicles (UAVs) or unmanned aircraft systems. A drone is a flying robot that can be remotely controlled or fly autonomously using software-controlled flight plans in its embedded systems. This in-built software uses sensors and a Global positioning system (GPS) to guide the drone to fly. Drones are used in many fields in the present era, e.g., military, agriculture, photography, and emergency responses. Drones are classified into different types based on their flight capabilities, size, shape, and purposes. Irrespective of their use, drones are categorized into two main types based on their structure and shape – fixed-wing and rotary-wing.

Drone technology like any other industry needs regulation to discourage any malpractices. In this guide we will discuss requirements of drone license India implements.

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The rise of drone technology in India

Drone technology has improved so much over the years. Initially, drones were used for military purposes only, but now, due to the progress of the IT field, drone technology has also become more innovative and is used in other sectors like medicine, construction, and real estate as well. Integrating technologies like artificial intelligence and GPS has taken drone technology to another level. Due to this, the capabilities and applications of drones have also been increased. India’s drone sector grew by 60 % in 2022. The Indian drone industry is expected to grow at an annual growth rate of 10.23% from 2023 to 2028 if the statistics continue to grow. The government is taking many initiatives to grow its drone industry. Its target is to achieve a 1-billion-dollar drone industry by 2025.

Drones are increasingly used in fields like agriculture, military, logistics, etc. The agriculture sector is one of India’s top sectors that use drone technology for crop maintenance monitoring, pesticide spraying, and fertilizer dosage. Now, drones are being tested to make it possible to deliver goods in the logistics sector, with the help of drone technology, to reduce delivery charges and time. Drones are also being used to monitor infrastructures, e.g., buildings, powerlines, bridges, etc., so faults can be detected and solved to avoid accidents.

The government of India has made a drone task portal called Digital Sky, which contributes to the growth of the drone industry. Managed by the Directorate General of Civil Aviation, they work on framing and implementing guidelines and policies to grow the drone industry.

Moreover, the government has also launched a dedicated portal for the registration of drones, where a person can register their drone, get permission, and manage its operations more easily.

The government has also launched a production-linked incentive (PLI) scheme in September 2021, which encourages the country to manufacture drones and their components in the country. The government of India has set a budget of 120 crores for the drone industry as part of the PLI scheme. The government has also planned to provide financial rewards to the companies that contribute significantly to the drone industry.

Overview of drone-based business opportunities

Drones have become increasingly popular due to their efficiency and versatile functionality. PLI scheme has opened up many opportunities for business entrepreneurs. Starting a drone business can cater to various opportunities in different industries, e.g., real estate, photography and videography, agriculture, construction, etc. Entrepreneurs aiming to get into the drone industry can get more profit by applying different strategies. They can strategically widen their business by offering more advancements and services to other sectors. There is also increase in demand for drone pilot license from operators.

The need for drone license and robust regulatory compliance

As drone technology progresses daily, ensuring its safe and responsible usage is also important. The Indian government has directed drone operators to get drone licenses first. The government also requires the operators to follow all the regulations and guidelines set by the Directorate General of Civil Aviation (DGCA) to avoid unforeseen mishaps.

Navigating the Indian drone permit process

DGCA has set forth regulations based on the type of drones. For example, for recreational drones weighing under 250 grams, a permit and registration are not required. However, they must stay at a distance from airports and sensitive areas where a manned aircraft is possible.

Drones weighing more than 250 grams are classified as commercial drones. Commercial drone operators must get a unique identification number (UIN) and an aircraft operator permit (UAOP) from the Directorate General of Civil Aviation.

Detailed documentation, with proof of ownership of the drone, pilot certification, and flight plans, is required to proceed with the application.

The whole registration process might be a bit difficult, but different resources help the operators in getting themselves registered. Moreover, the official website of the DGCA also provides detailed guidance on the registration process.

Safety guidelines for drones in India 

Safety should be the priority for every operator, even if they are flying the drone for recreational purposes. One of the most important precautionary measures that should be taken is to fly the drone within the visual line of sight (VLOS). It means flying the drone under a distance from which you can see your drone to avoid obstacles, aircraft, and people on the ground.

Moreover, the operator must only fly their drones in allowed or approved areas, avoiding prohibited areas, e.g., near airports, government buildings, and military places. It is also crucial for an operator to check the drone to ensure it is functioning properly before every flight.

The operator should also check the weather conditions before using their drone and prevent themselves from flying drones in windy and rainy conditions since it can affect the stability, and the operator can lose control over their drones under these weather conditions.

Current Regulatory Framework

The government changes the regulations and policies after every small span. For any business licensing requirements are compulsory compliance. So, the operator should always stay up to date with the latest changes to avoid any kind of penalties or restrictions.

An overview of 2021 drone regulations and drone class

According to 2021 rules regarding drone operations, the government has made it easy for operators to fly a drone while ensuring all the safety measures. The Ministry of Civil Aviation introduced a set of rules. These regulations were supposed to simplify the regularity process for using drones for commercial, research, and entertainment purposes.

According to the regulations of 2021, drone class has five main categories according to their sizes and carrying capacity.

Types of drone class:

Mini drones: they can only carry up to 100 grams of weight.

Small drones: they can carry up to 1 kg of weight.

Medium drones: they can carry up to 5kg of weight

Large drones: they can carry up to 30 kg of weight

Heavy lift drones: they can carry up to 220 kg of weight.

Different regulations were applied to each drone class for licensing and permits. For example, Nano and micro drone operators are not required to have a permit or license. On the other hand, commercial operators must have a remote pilot license (RPL) to fly drones.

Digital Sky platform

A digital sky platform was launched in 2021. It is an online portal for managing drone operations. Here, drone owners and operators can register their drones and get permits to fly. After registering the drone from this platform, the user gets a unique identification number (UIN), which verifies the drone model and the owner’s details as well. Consequently, the UIN is issued by the DGCA. The operators are also ordered to follow the No Permission, No Take-off (NPNT) policy, which means they can’t fly their drones until they get a permit from the platform. Moreover, this portal provides the ability to track and manage drone flights in real time, which helps us ensure that our drone does not interfere with any manned aircraft.

Operational compliance

No-fly zones and restricted areas: According to DGCA guidelines, drones cannot fly around certain areas like airports, military installations, and other sensitive locations. So, drones cannot fly in these areas without specific permission.

Height and distance limitations: Unmanned drones generally have a limit of a maximum of 120 meters altitude. An unmanned drone is prohibited from flying at a higher altitude than this limit to avoid interference with any manned aircraft. Moreover, the operators of unmanned drones are ordered to maintain a distance of at least 30 meters between their drones and people or property that are not part of the operation. The operator must keep their drone under their visual line of sight to avoid collision with any other manned aircraft or obstacle.

Pilot licensing requirements: A remote pilot license (RPL) is mandatory before flying a drone. To get an RPL, the operator has to get proper training, pass an exam, and obtain DGCA approval.

Insurance mandates: All drone operators are required to obtain insurance. Due to this, the owner can prevent himself from any potential loss in case of a drone accident. The insurance policy must follow all the rules and regulations set by the DGCA to validate the insurance. The insurance makes the operator responsible for their actions, so they become careful while using drones in the future. It creates a safer atmosphere for everybody because it ensures that the owner is responsible for their actions and is prepared for any issue that may arise during any mishap during the flight.

Data privacy and security: Apart from following the regulations by DGCA, the operator should also pay attention to security. Drones can store vast amounts of data, such as pictures, videos, and other information, which might be confidential. So, the operator is responsible for securing the data. The operator should ensure that the data is only shared with authorized people. Otherwise, there is a high chance of data breaches and misuse of information.

Cybersecurity requirements for drone operations

Due to weak security protocols and a rise in drone innovation, drones have become an easy target for cyberattacks. In the past few years, many physical and cybersecurity attacks by some adversarial drones have been reported in India. Certain measures can be taken to prevent drones from cyberattacks.

Creating a strong authentication Mechanism: By creating a multilayer authentication process for the operators, the operators can be saved from any kind of cyberattack.

Securing all the necessary credentials is necessary to avoid any unauthorized person.

Encryption of communication channels: Ensuring that the data transmitted from one drone to the ground is end-to-end encrypted is crucial. Proper secure communication protocols such as transport layer security (TLS) should be followed for this.

Network security measures

Security precautions should be implemented on the network responsible for data transfer between the drone and the operator. To resolve this problem, firewalls must be installed to avoid unauthorized users. Moreover, an intrusion detection system (IDS) should also be installed in the UAVS to detect any malicious activity like data breaches.

Compliance with the Information Technology Act, 2000

Information Technology Act is a law all businesses in India must follow if they handle personal data. The IT Act 2000 is very important for these types of firms, and not following the regulations can result in high penalties, e.g., large fines and jail time (under section 85 of the act).

  • According to the Act 2000, a company must secure sensitive data like passwords and financial details.
  • If a company uses other people’s data, it should be more careful. It should take proper measures to avoid any cyberattacks and data breaches.
  • Only the government can oversee data (under sections 69 and 69-A).
  • Companies should regularly monitor the stored data to ensure they follow and protect all the rules. Companies should also apply end-to-end encryption to their data.
  • Companies are not allowed to share the data of a person with an external entity (under section 72-A).
  • If the company fails to follow the regulations and leaks the confidential data of any person, the owner can face a large fine and jail time of 3 to 7 years, regardless of whether he is involved or not.

Industry-Specific Compliance Issues

Indeed, drones are beneficial in every field, but there are also some concerns related to their use. And there are some industry-specific compliance issues related to them.

Agriculture, Pesticide spraying regulations

Regarding agriculture, especially spraying pesticides, owners should follow some regulations to save the environment and human health.

The farmers can only spray their fields with the only pesticides that the government approves to ensure they are effective and harmless for the crops and the environment. The drone’s farmer or owner spraying the crops should be trained to spray the pesticides efficiently without spraying them in unnecessary places. Moreover, pesticide spraying should be done while keeping a safe distance from human habitations and water resources to avoid any poisoning in the water.

Pesticide spraying should be done under calm weather conditions when the wind speed isn’t too high. In extreme weather conditions like high wind speed and rain, the pesticides get mixed into the environment, affecting human life. Farmers should take proper measures, e.g., by covering their face with a mask and wearing gloves before spraying pesticides to save their health.

 Surveillance and photography

The Indian government has created laws to balance drone innovation with the protection of individual privacy. Some of the privacy laws are:

Taking consent: Operators must obtain consent from an individual or a firm before taking any image or data.

Prohibited flying zones: drones are prohibited to fly over sensitive areas like military installations and public buildings without permission.

The drone operators should implement strong encryption to protect the data collected by the drones from breaches.

Make in India initiative

India has banned the import of drones to encourage local drone manufacturing. A significant result is seen due to this strategy. About 77% of registration of locally manufactured drones has been made, according to the Directorate General of Civil Aviation (DGCA).

The government of India has taken many initiatives to encourage companies to manufacture their own drones and components in the country. One of the initiatives is the production-linked incentive (PLI). Moreover, the scheme has invited foreign drone-making companies to set up their production plants in India to increase domestic production. The government has also initiated many drone training courses to provide youth with the skills necessary for operating drones.

The Drone Shakti initiative is also one of the best initiatives taken by the government.  This scheme encourages innovation by supporting drone startups in India. This will help companies become “drone Shakti.” The main purpose of this scheme is to promote the Drone-as-a-service (DAAS) business model, where the companies would rent or take drone services instead of buying highly expensive drones and investing in drone software. This also helps businesses use drones for different purposes like aerial deliveries, inspections, etc.

The SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas) is a scheme launched by the government of India in April 2020. This scheme uses drones for accurate land mapping of rural areas, which helps to provide clear ownership to the villagers. The villagers obtain property cards and legal documents for their land. By getting accurate digital documents, land disputes are also reduced.

The potential impact of 5G technology on drone operations

5G technology offers faster data transmission and lower latency, which allows drones to communicate with their operators in real time. 5G The applications that require quick response, e.g., for emergency services.

5G data also enhances data processing, along with quickly transmitting large amounts of data. It can transfer high-resolution images and videos to a cloud service for analysis.

Enhanced connectivity of 5G technology allows the drone to function over long distances, making it easy to send drones to hazardous areas without an operator being physically present.

Due to 5G, drones can also receive updates about no-fly zones more quickly, which reduces the chances of collisions with manned aircraft.

The drones equipped with 5G are more efficient in transmitting data, so they can inform medical teams about any medical emergency and transport medical supplies to remote locations easily in critical situations.

Conclusion

Drones are a game changer in technology with applications across sectors, including healthcare, agriculture, construction, real estate, data transmission, and inspections. More initiatives regarding drone manufacturing and promoting its usage can offer more optimum solutions to different problems.

With growth of the drone industry, need for stringent drone license increases. The threat of cyberattacks can be reduced if regulatory compliance and privacy laws are followed. Despite the security threats, the overall potential impact of drones is very significant for the modern era, and drones can offer more innovations by integrating with 5G and more advanced technologies in the future.

Picture of CA Vaibhav Mittal

CA Vaibhav Mittal

CA Vaibhav Mittal is a seasoned Chartered Accountant with over 15 years of experience in finance, taxation, and business advisory. He specializes in providing expert guidance on tax planning, financial management, and regulatory compliance to individuals and businesses alike.

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