Airbus-Tata Chopper Unit Lands in Karnataka
Airbus, the European aerospace major, and
Tata Advanced Systems
(TASL), the aerospace arm of the nearly $400-billion Tata Group, have decided to set up the final assembly line (FAL) for the
H125 helicopters
at Kolar in Karnataka, people aware of the developments told ET.
The facility will be India's first privately led helicopter assembly line, boosting the Make-in-India programme that also seeks self-reliance in aerospace manufacturing as a key objective of the dedicated scheme, experts said.
The factory will produce Airbus' best-selling H125 helicopter from its civil range for India and the neighbouring countries, said the people cited above.
It will be the fourth such facility in the world — after France, the US and Brazil.
Karnataka beat other prospective locations, such as Andhra Pradesh, Gujarat, and Uttar Pradesh, because of the southern state's established ecosystem in aerospace manufacturing. HAL, which began more than eight decades ago and is the fourth-biggest aircraft maker in the world by market capitalisation, is based in the state.
'The locations were examined based on their logistics facility, expansion potential, availability of skilled workforce, and promises from the state government, like fast-track approvals,' said one of the people aware of the developments.
People involved in the project said the plant will be set up in the Vemgal Industrial area, around two hours from Bengaluru. It already houses other facilities of TASL, including a satellite manufacturing plant.
Spokespersons at Airbus and TASL didn't respond to ET's queries on the subject. Gunjan Krishna, commissioner for industrial development and director, industries department, Karnataka, declined to speak on the subject, saying the discussions were confidential.
Anantapur in Andhra Pradesh, which gained international recognition after becoming home to Kia Motors' manufacturing unit, was a strong contender. Yet, Karnataka was chosen due to its strong ancillary support ecosystem besides being a hub for TASL.
The proposed facility 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 Tata-owned company recently acquired 740,000 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 facilities. An official, on the condition of anonymity, said Vemgal has potential for expansion, including housing helipads necessary 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 subsidies on land, including capital investment, stamp duty, incentives in electricity charges and production-linked benefits of 1% of annual turnover for a period of five years.
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