Bharat Dynamics Limited (BDL), a leading defence public sector enterprise, is set to begin construction of a major propellant production and weapon integration facility at Donakonda in Andhra Pradesh, marking a significant milestone in the creation of the state’s ambitious defence industrial corridor.

The total investment for the new facility is pegged at ₹1,400 crore, making it one of the largest defence manufacturing projects in the region.

This plant will anchor the Jaggaiahpet–Donakonda hub, which forms part of Andhra Pradesh’s defence industrial corridor — India’s third after the ones in Uttar Pradesh and Tamil Nadu. Covering nearly 23,000 acres state wide, the corridor is envisioned as a comprehensive ecosystem with five hubs focusing on propulsion, weapons integration, avionics, and research-based defence manufacturing.

The State Investment Promotion Board (SIPB), chaired by Chief Minister N Chandrababu Naidu, has approved the allocation of 1,400 acres of land to BDL. This includes 1,200 acres for the core manufacturing facilities and 200 acres for an employee township. Sources indicate that the project has been cleared for a single-phase execution plan, reflecting the state’s intent to expedite industrial and defence infrastructure development.

Construction is scheduled to commence by April 2026, with an estimated commercial production launch in October 2028. The project will add to BDL’s growing network of production establishments—this being its fifth manufacturing unit after Hyderabad, Bhanur, Visakhapatnam, and Amravati. The Donakonda plant will primarily cater to propellant production for missiles and integrated weapon assembly, ensuring enhanced supply chain autonomy in India’s strategic defence programs.

Andhra Pradesh has also proposed the establishment of an Indian Air Force (IAF) station at Donakonda, strategically located around 400 km from Hyderabad.

The site’s vast land availability and central location make it suitable for combined facilities such as an operational air base, logistics center, IAF training complex, and R&D hub.

The co-location of the BDL plant with the proposed IAF station is expected to provide mutual logistical advantages and foster immersive collaboration between defence manufacturing and operational readiness.

The plant is projected to serve as a catalyst for Andhra’s defence manufacturing ecosystem, generating hundreds of direct and indirect employment opportunities.

It will also attract ancillary industries dealing in solid fuel processing, chemical propellants, missile components, and precision engineering. Strategically, the Donakonda facility will bolster India’s Atmanirbhar Bharat initiative by localising critical missile materials and reducing external dependency in propulsion systems.

The project traces its origin to Naidu’s proposal to Defence Minister Rajnath Singh on May 23, where he pitched Andhra’s readiness to host a full-spectrum defence corridor.

The central and state governments see the BDL project as the first anchor investment that will draw additional defence and aerospace companies to the region, enriching both national security and local industrial growth.

This initiative places Andhra Pradesh firmly on India’s strategic defence production map, with Donakonda emerging as a future hub for missile manufacturing, propellant R&D, and aerospace infrastructure.

Based On ET News Report