The "Sky Factory" will be one of the world's largest for electric vertical take-off and landing (eVTOL), a manufacturing and assembly process to make electric aircraft that can take off, hover, and land vertically.
It will put India on the "map of next-generation aviation" and marks one of the most ambitious eVTOL initiatives in the world, said a state government statement.
Andhra Pradesh will partner with Karnataka-based Sarla Aviation to set up India's first "giga-scale" cluster to manufacture electric air taxis in Anantapur district for an investment of Rs 1,300 crore, it was announced on Tuesday.
The "Sky Factory" will be one of the world's largest for electric vertical take-off and landing (eVTOL), a manufacturing and assembly process to make electric aircraft that can take off, hover, and land vertically.
It will put India on the "map of next-generation aviation" and marks one of the most ambitious eVTOL initiatives in the world, said a state government statement.
Sarla and the Andhra Pradesh Airport Development Corporation Ltd (APADCL) signed a memorandum of understanding (MoU) at the CII Partnership Summit 2025 in Visakhapatnam, agreeing to set up a fully integrated eVTOL cluster.
The agreement was signed a week after Andhra Pradesh Chief Minister N Chandrababu Naidu told the summit that the state expects to manufacture drone taxis within two years.
The first phase of Sky Factory will see an investment commitment of Rs 330 crore and the development of a 150-acre manufacturing and testing campus in Thimmasamduram village, Kalyanadurg Mandal, Anantapur.
Equipped with the latest production lines, research and development centres, composite labs and a dedicated 2 km runway, Sky Factory will create a "seamless" value chain for building, testing, certifying and maintaining eVTOL aircraft.
The project will generate "high-value employment", including 40 specialised jobs and 140 indirect jobs by 2027, with plans to expand to an additional 350 acres in the second phase.
Once fully operational, Sky Factory will have the capacity to annually manufacture up to 1,000 aircraft, including flagship platforms such as the Shunya hybrid VTOL and a range of indigenously produced electrical harness systems, landing-gear assemblies and advanced composite structures.
"With the world's biggest Sky Factory, we want to make India the nerve centre for the next era of flight. This giga facility will shape the aircraft of the future, create thousands of high-skill jobs, and establish India as a global force in sustainable aerial mobility. Our goal is simple: let India design, build, test, fly and operate the world's most advanced eVTOL systems from one integrated campus," said Rakesh Gaonkar, cofounder and chief technology officer of Sarla Aviation.
The Andhra Pradesh government, through APADCL, will serve as a strategic facilitator to fast-track project implementation and ensure ecosystem readiness.
"This collaboration represents a major stride in the state's mission to become India's capital of advanced manufacturing," said the statement.
Founded in 2023 by veterans of the global eVTOL industry, Sarla Aviation is designing a six-seater electric flying taxi that aims to shrink commute times in India's busiest metros.
The company, backed by private equity investor Accel, targets commercial operations by 2029 and envisions making India a global powerhouse in electric aviation.
Feature Presentation: Aslam Hunani/Rediff
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