India's ambition to bolster its indigenous aerospace manufacturing capabilities has taken a significant step forward with the prospective establishment of the country's first final assembly line (FAL) for commercial fixed-wing aircraft.

This landmark project involves a joint venture between Brazilian regional aircraft manufacturer Embraer and the Adani Group, with potential locations narrowed down to either Gujarat's Dholera or Andhra Pradesh's Bhogapuram. Dholera emerges as the frontrunner amid aggressive overtures from both states, each vying to host this transformative initiative.

A formal announcement for the Adani-Embraer JV is anticipated next Tuesday, promising greater clarity on the chosen site. Neither party has commented publicly on the location, but the stakes are high given the project's alignment with Prime Minister Modi's Make in India policy. Fiscal incentives are under consideration to encourage customers to opt for aircraft produced domestically, enhancing economic viability.

Drawing parallels with existing benchmarks, the Embraer FAL could mirror the timeline of the Airbus-Tata Advanced Systems Ltd (TASL) facility in Vadodara. That JV, established for the 70-seater military transport aircraft C295, took approximately three to four years to become operational, followed by another year for the first rollout. Embraer's regional jets, accommodating 70 to 130 seats, would likely follow a similar five-year trajectory from agreement to first flight.

India's C295 acquisition, finalised in September 2021, mandates 16 fly-away aircraft from Spain and the remainder manufactured locally to replace the Indian Air Force's ageing Avro fleet.

The Vadodara FAL, jointly inaugurated by PM Modi and Spanish Premier Pedro Sanchez in October 2024, is poised to deliver its inaugural made-in-India C295 by September this year. This precedent underscores the feasibility of rapid infrastructure development in the sector.

Other parallel developments reinforce India's growing aerospace ecosystem. A Tata-Airbus JV in Hyderabad for the light commercial helicopter H125 is slated for readiness in 1.5 years, with the first unit expected early next year. Hindustan Aeronautics Ltd (HAL) has partnered with Russia's United Aircraft Corp for SJ-100 regional jets, while HAL's indigenous 19-seater Dornier 228 awaits broader commercial traction.

The Embraer FAL represents the most prominent success yet for Make in India in commercial aviation. Its fruition would necessitate a comprehensive assembly line ecosystem, potentially enticing global giants Airbus and Boeing to establish similar facilities. Currently, Airbus sources $1.5 billion annually from India—set to rise to $2 billion by 2030—while Boeing's figure stands at $1.25 billion, despite massive orders from IndiGo, Air India Group, and Akasa.

Notably, neither Airbus nor Boeing has FAL plans in India at present. Airbus operates such lines in France, the US, Germany, China, and Canada; Boeing in the US and China. The absence underscores the pioneering nature of the Embraer project.

Both contender states recognise the economic multiplier effects. Gujarat, already home to the Vadodara FAL, stands to create a robust 151 km-spanning aerospace belt with Dholera. Andhra Pradesh's Bhogapuram, meanwhile, will anchor a new commercial hub serving Visakhapatnam once operational.

Dholera's pitch centres on its aviation hub under development by Dholera International Airport Co Ltd (DIACL), a special purpose vehicle of the Airports Authority of India (AAI) and Gujarat government. Featuring two parallel class runways and supporting infrastructure, it aims to foster allied industries like maintenance, repair, and overhaul (MRO) facilities alongside aviation academies.

Bhogapuram, led by GMR Group—operators of hubs in Delhi, Hyderabad, and Goa (Mopa)—envisages a sprawling aerospace park across 500 acres. GMR Chairman G M Rao highlighted in November last year plans for the world's largest MRO, attracting global manufacturers, original equipment makers, and R&D units to form a complete ecosystem.

This competition reflects broader state-level strategies to position themselves as aerospace powerhouses. Success here could catalyse job creation, technology transfer, and supply chain integration, propelling India towards self-reliance in civil aviation manufacturing.

Based On TOI Report