In a landmark development for India's aerospace sector, Karnataka has been chosen as the site for the country’s first privately-led helicopter assembly facility, a joint venture between TATA Advanced Systems Limited (TASL) and European aviation giant Airbus.

The new plant will be established in the Vemgal Industrial Area near Kolar, about two hours from Bangalore, and marks a significant stride in the central government’s ‘Make in India’ initiative, aimed at achieving self-reliance in high-technology manufacturing.

The facility will focus on assembling Airbus’s best-selling H125 helicopters, targeting both the Indian and neighbouring South Asian markets. This will be only the fourth such final assembly line (FAL) for the H125 globally, following France, the US, and Brazil. Initial production is set at 10 helicopters per year, with plans for expansion in response to Airbus’s projection of a demand for 500 light helicopters in India and South Asia over the next two decades.

TASL recently acquired a 7.4 lakh square foot plot in the Vemgal Industrial Area for this project, investing approximately ₹29.34 crore. The site will not only house the assembly line but also comprehensive Maintenance, Repair, and Overhaul (MRO) facilities, with provisions for future expansion, including helipads necessary for pre-delivery testing of aircraft.

Karnataka was selected for this high-profile investment over other contenders such as Andhra Pradesh, Uttar Pradesh, and Gujarat. The decision was influenced by Karnataka’s robust aerospace manufacturing ecosystem, established ancillary support, skilled workforce, and the state’s proactive industrial policies. Incentives offered by the Karnataka government include subsidies on land, capital investment benefits, reduced stamp duty, electricity charge incentives, and production-linked incentives of 1% of annual turnover for five years.

The presence of existing TASL facilities in the region, including a satellite manufacturing plant, further tipped the scales in Karnataka’s favour, ensuring synergy and logistical efficiency. The state’s commitment to fast-tracking approvals and its reputation as a hub for aerospace and defence technology also played a pivotal role in securing the project.

Industry experts believe this initiative will not only strengthen indigenous manufacturing capabilities but also catalyse the development of advanced industrial clusters, drive skill development, attract supply chain investments, and create high-value employment. This project is expected to accelerate India’s transformation into a globally competitive node in aerospace manufacturing.

In parallel, TATA and Airbus are also establishing a final assembly line for the C295 aircraft in Vadodara, Gujarat, as part of a broader strategy to distribute high-value projects across different states. Nonetheless, the Karnataka helicopter facility stands out as a historic milestone, positioning India as a key player in the global helicopter manufacturing landscape and reinforcing the nation’s ambition for self-reliance in defence and aerospace.

Based On ET Now Report