BENGALURU- Airbus, in collaboration with Tata Advanced Systems Limited (TASL), has chosen Karnataka as the location for India’s inaugural private helicopter assembly facility.
The renowned European aviation company partnered with TASL, the aerospace sector of the Tata Group, to establish a Final Assembly Line dedicated to the H125 helicopters intended for the Indian Air Force.
Helicopter Manufacturing Facility
The chosen site for this helicopter manufacturing venture is Kolar, Karnataka, where operations will be set up in the Vemgal Industrial Area, located about two hours from Bengaluru.
TASL already operates several facilities within this industrial zone, including a satellite manufacturing unit.
This new assembly line will be the fourth global production site for the H125 helicopters, complementing existing facilities in France, the United States, and Brazil. This development positions India as a key player in Airbus’s global manufacturing network.
Production Capacity
The Karnataka facility is set to begin operations with an annual production capacity of 10 helicopters. Airbus anticipates significant growth potential, with market forecasts indicating a demand for 500 light helicopters in the H125 category across India and South Asia over the next twenty years.
The H125 model is Airbus’s top-selling offering in its civil aircraft lineup, with the new facility primarily catering to Indian military needs and markets in neighboring countries.
Site Selection Process
Karnataka prevailed in a competitive selection process against several states.
Andhra Pradesh, Uttar Pradesh, and Gujarat were also in contention for this prestigious manufacturing endeavour.
Anantapur, Andhra Pradesh, posed a strong competition, especially after gaining international recognition for being the site of Kia Motors’ manufacturing operations.
Karnataka’s selection was influenced by its established aerospace manufacturing ecosystem and substantial ancillary support infrastructure. The state’s status as a hub for TASL provided additional advantages during the decision-making process.
Infrastructure Development
TASL has recently acquired a significant 7.4 lakh square feet production site in the Vemgal Industrial Area, tailored for aircraft manufacturing and assembly. This acquisition includes provisions for Maintenance, Repair, and Overhaul capabilities, ensuring comprehensive services for helicopters.
Site evaluations focused on logistics infrastructure, potential for expansion, availability of a skilled workforce, and government commitments to streamline approval processes. Vemgal showcased considerable expansion opportunities, including space for helipad construction, essential for testing aircraft before delivery.
Government Incentives
The aerospace and defense policy framework of Karnataka provided significant incentives to secure this project. The state government extended subsidies for land acquisition, supported capital investments, reduced stamp duties, and offered concessions on electricity charges. Production-linked incentives comprise one percent of the annual turnover for five consecutive years.
Industry Impact
Industry leaders in aerospace perceive this development as a catalyst for enhanced indigenous manufacturing capabilities. Aravind Melligeri, the executive chairman and CEO of Aequs, a significant aerospace supplier to Airbus, highlighted the project’s role in bolstering domestic production capacity.
Broader Partnership
The helicopter assembly line is part of a broader partnership between Tata and Airbus, extending beyond Karnataka. The companies are concurrently establishing a C295 aircraft final assembly line in Vadodara, Gujarat, showcasing the extensive scope of their collaboration.
Gujarat’s success in attracting various high-value investment projects, including those in the semiconductor industry and the international diamond bourse, has ignited discussions about regional investment distribution.
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Sakshi is currently a DGCA Commercial Pilot pursuing her way into the Indian Aviation industry. With her passion for aviation, she enjoys crafting engaging articles and short stories and is enthusiastic about sports, fitness, and Elon Musk’s Tesla!
Based on an article from aviationa2z.com: https://aviationa2z.com/index.php/2025/05/27/karnataka-to-establish-india-first-private-helicopter-facility/?utm_source=rss&utm_medium=rss&utm_campaign=karnataka-to-establish-india-first-private-helicopter-facility
