Make In Karnataka! Tata-Airbus Helicopter Manufacturing Unit To Be Set Up In Kolhar

India's aerospace sector is set to get a big boost as Tata Advanced Systems (TASL) and Airbus have announced to join hands to build nation's first privately-led helicopter assembly facility. This unit will be set up in Kolhar, Karnataka.

This initiative not only propels the Prime Minister Narendra Modi's 'Make in India' vision but also positions India on the global map of aerospace manufacturing. The chosen venue for this venture is the Vemgal Industrial Area in Kolar, merely a couple of hours away from Bengaluru. Notably, this area is already host to other TASL operations, including a satellite manufacturing plant, highlighting the strategic synergy in location selection for this ambitious project.

The assembly plant in Kolar is geared up to manufacture Airbus's H125 helicopters, a model renowned for its popularity in the civil sector. This production unit is poised to become the fourth of its kind globally, aligning with facilities in France, the USA, and Brazil. Initially, the production capacity is set at 10 helicopters annually. However, given Airbus's projection of a demand for 500 light helicopters of the H125 class in the Indian and South Asian markets over the next 20 years, plans for expansion are already on the horizon.

Karnataka's selection as the site for this assembly line was not arbitrary; the state was chosen over other contenders such as Andhra Pradesh, Uttar Pradesh, and Gujarat due to its robust aerospace manufacturing ecosystem. Despite Anantapur in Andhra Pradesh being a strong candidate, thanks to international recognition from Kia Motors' manufacturing unit, Karnataka's comprehensive ancillary support system and existing TASL facilities gave it the edge. This decision underscores the importance of a well-established industrial ecosystem in driving major projects.

The establishment of this facility in Karnataka is a testament to the state's attractive aerospace and defence policies, which offer numerous incentives including subsidies on land, capital investment benefits, reduced stamp duty, and electricity charge incentives. Additionally, production-linked incentives promise 1% of annual turnover for five years, making it an appealing destination for aerospace manufacturing.

Aravind Melligeri, the executive chairman & CEO of Aequs, a major aerospace manufacturer and Airbus partner, lauded this initiative, stating, "This will not only strengthen indigenous manufacturing capabilities but also act as a catalyst for developing advanced industrial clusters." He emphasized the transformative potential of such projects in bolstering India's position in the global aerospace manufacturing arena, driving skill development, attracting supply chain investments, and generating high-value employment opportunities.

The collaboration between Tata and Airbus extends beyond Karnataka; they have also partnered to establish a final assembly line for the C295 aircraft in Gujarat's Vadodara. This move, coupled with Gujarat's recent acquisition of significant investment projects, has stirred political debates, with opposition leaders suggesting a preferential treatment towards the state by the central government.