The facility is India’s first privately-led helicopter assembly facility and is a shot in the arm of the government’s Make in India campaign as part of which the government is trying to build self-reliance in aerospace manufacturing.
The factory will produce Airbus’ best-selling H125 helicopter from its civil range for India and the neighbouring countries and will be the fourth such facility in the world after France, US and Brazil. It will start with a production capacity of 10 helicopters per year but will see expansion as Airbus has projected a demand for 500 light helicopters of the H125 class in the country and south Asia in the next 20 years.
The people quoted above said that the plant will be set up in the Vemgal Industrial area which is around two hours from Bengaluru and already houses other facilities of TASL including a satellite manufacturing plant.
Spokespersons of Airbus and TASL didn’t reply to queries. Gunjan Krishna, commissioner for industrial development and director, industries department of Karnataka refused to speak on the topic as the discussions were confidential.
Karnataka, they said, was chosen among multiple other locations in Andhra Pradesh, Uttar Pradesh and Gujarat due to the state’s established ecosystem in aerospace manufacturing.While Anantapur in Andhra Pradesh which gained international recognition after becoming home to Kia Motors’ manufacturing unit was a strong contender, Karnataka was chosen due to its strong ancillary support ecosystem besides being a hub for TASL which will build the plant.The Tata-owned company recently acquired 7.4 lakh sq. ft. plot in Karnataka’s Vemgal Industrial Area for the establishment of an aircraft manufacturing and final assembly line, including Maintenance, Repair, and Overhaul (MRO) facilities.
“The locations were apprised based on their logistics facility, expansion potential, availability of skilled workforce and promises of the state government like fast track approval of permissions,” a person involved in the project said.
He said that Vemgal has potential of expansion including setting up of helipads which is a must for a final assembly line for testing of aircraft before delivery.
Besides that the state as part of its aerospace and defence policy has also promised subsidy on land including capital investment, stamp duty, incentives in electricity charges and production linked incentives of 1% of annual turnover for a period of 5 years.
“This will not only strengthen indigenous manufacturing capabilities but also act as a catalyst for developing advanced industrial clusters,” said Aravind Melligeri, executive chairman & CEO, Aequs a major aerospace manufacturer which counts Airbus as a customer.
Initiatives like this drive skill development, attract supply chain investments, and create high-value employment, accelerating the transformation of India into a globally competitive and strategic node in global aerospace manufacturing,”
Tata and Airbus are also setting up a final assembly line for the C295 aircraft in Vadodara, Gujarat. Gujarat has recently bagged multiple high-ticket investment projects including multiple semiconductor plants, C295 aircraft and the international diamond bourse leading to accusations from opposition political leaders that the state was being favoured by the central government.
