Airbus-Tata JV to Establish India's First Private Helicopter Assembly Line in Karnataka.

In a significant boost to India's "Make in India" initiative and self-reliance in aerospace manufacturing, European aviation giant Airbus and Tata Advanced Systems (TASL), the aerospace arm of the Tata group, are set to establish India's first privately-led helicopter assembly facility in Kolar, Karnataka. The Final Assembly Line (FAL) will initially produce H125 helicopters for the Indian Air Force (IAF).

Sources familiar with the development indicate that the facility will be located in the Vemgal Industrial Area, approximately two hours from Bengaluru, an area that already hosts other TASL facilities, including a satellite manufacturing plant.

This new plant will be the fourth such facility globally for the H125, following existing operations in France, the US, and Brazil. It is expected to begin with an annual production capacity of 10 helicopters, with plans for expansion. Airbus projects a demand for 500 light helicopters of the H125 class across India and South Asia over the next two decades.

Karnataka was chosen over other potential locations in Andhra Pradesh, Uttar Pradesh, and Gujarat, primarily due to its well-established aerospace manufacturing ecosystem. While Anantapur in Andhra Pradesh, known for Kia Motors' manufacturing unit, was a strong contender, Karnataka's robust ancillary support system and its status as a hub for TASL ultimately tipped the scales. TASL recently acquired a 7.4 lakh sq. ft. plot in Karnataka’s Vemgal Industrial Area for aircraft manufacturing, final assembly, and Maintenance, Repair, and Overhaul (MRO) facilities.

A person involved in the project, who requested anonymity, noted that locations were assessed based on logistics, expansion potential, availability of skilled workforce, and state government assurances, including fast-track approval processes. Vemgal's potential for expansion, including the critical feature of helipads for aircraft testing before delivery, was a key factor.

Furthermore, Karnataka's aerospace and defence policy offers incentives such as land subsidies, capital investment benefits, stamp duty exemptions, electricity charge incentives, and production-linked incentives of 1% of annual turnover for five years.

Aravind Melligeri, Executive Chairman & CEO of Aequs, a major aerospace manufacturer and Airbus customer, lauded the initiative. "This will not only strengthen indigenous manufacturing capabilities but also act as a catalyst for developing advanced industrial clusters," Melligeri stated. "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."

Neither Airbus nor TASL spokespersons responded to requests for comment. Gunjan Krishna, Commissioner for Industrial Development and Director, Industries Department of Karnataka, declined to comment due to the confidential nature of the discussions.

It is worth noting that Tata and Airbus are also collaborating on a final assembly line for the C295 aircraft in Vadodara, Gujarat. Gujarat has recently secured several high-profile investment projects, including multiple semiconductor plants, the C295 aircraft facility, and the international diamond bourse, leading to accusations from opposition political leaders regarding alleged favoritism by the central government.