BENGALURU- Airbus and Tata Advanced Systems Limited (TASL) have selected Karnataka to establish India’s first private helicopter assembly facility.
The European aviation giant partnered with TASL, the aerospace division of the Tata Group, to create a Final Assembly Line for H125 helicopters designated for the Indian Air Force.
Helicopter Manufacturing Facility
The companies chose Kolar, Karnataka, as the location for their helicopter manufacturing operations. Officials involved in the development confirmed that the facility will operate in the Vemgal Industrial Area, approximately two hours from Bengaluru.
TASL already maintains multiple facilities in this industrial zone, including a satellite manufacturing plant.
The new assembly line will become the fourth H125 helicopter production facility globally, joining existing operations in France, the United States, and Brazil. This designation positions India as a strategic manufacturing hub within Airbus’s international network.
Production Capacity
The Karnataka facility will commence operations with an annual production capacity of 10 helicopters. Airbus projects significant expansion potential based on market demand forecasts of 500 light helicopters in the H125 category across India and South Asia over the next two decades.
The H125 helicopter represents Airbus’s best-selling model from their civil aircraft range. The facility will manufacture these aircraft primarily for Indian military requirements and neighbouring country markets, supporting regional aerospace demands.
Site Selection Process
Karnataka emerged victorious from a competitive selection process involving multiple states.
Andhra Pradesh, Uttar Pradesh, and Gujarat also contended for the prestigious manufacturing project.
Anantapur in Andhra Pradesh presented strong competition, particularly after gaining international recognition as the home of Kia Motors’ manufacturing operations.
Karnataka’s selection resulted from its established aerospace manufacturing ecosystem and robust ancillary support infrastructure. The state’s position as a TASL operational hub provided additional advantages during the evaluation process.
Infrastructure Development
TASL recently acquired a 7.4 lakh square feet plot in Karnataka’s Vemgal Industrial Area specifically for aircraft manufacturing and final assembly operations. The acquisition includes provisions for Maintenance, Repair, and Overhaul facilities, creating comprehensive helicopter servicing capabilities.
Project evaluators assessed locations based on logistics infrastructure, expansion potential, skilled workforce availability, and state government commitments regarding expedited approval processes. Vemgal demonstrated significant expansion possibilities, including space for helipad construction, essential for aircraft testing before delivery.
Government Incentives
Karnataka’s aerospace and defence policy framework provided substantial incentives to secure the project. The state government offered subsidies on land acquisition, capital investment support, reduced stamp duties, and electricity charge concessions. Production-linked incentives comprise one per cent of annual turnover for 5 consecutive years.
Industry Impact
Aerospace industry leaders view this development as catalytic for indigenous manufacturing capabilities. Aravind Melligeri, executive chairman and CEO of Aequs, a major aerospace manufacturer supplying Airbus, emphasised the project’s role in strengthening domestic production capacity.
Broader Partnership
The helicopter assembly line represents part of a larger Tata-Airbus collaboration extending beyond Karnataka. The companies are simultaneously establishing a C295 aircraft final assembly line in Vadodara, Gujarat, demonstrating the partnership’s comprehensive scope.
Gujarat’s recent success in attracting multiple high-value investment projects, including semiconductor facilities and the international diamond bourse, has generated political discussions about regional investment distribution patterns.
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