SOURCE: AFI
In a significant boost to India’s aerospace and defense sector, Tata Advanced Systems Limited (TASL) has acquired a 7.4 lakh square foot plot in Karnataka’s Vemgal Industrial Area to establish a state-of-the-art aircraft manufacturing facility. The deal, valued at ?29.34 crore, was finalized with the Karnataka Industrial Areas Development Board (KIADB) under a lease-cum-sale agreement registered on February 24, 2025. The facility, which will include a final assembly line as well as Maintenance, Repair, and Overhaul (MRO) capabilities, marks a pivotal step toward enhancing India’s self-reliance in defense manufacturing while aligning with the government’s “Make in India” and “Atmanirbhar Bharat” initiatives.
The Vemgal Industrial Area, located along the Kolar-Chikkaballapur Road (SH-96) in Karnataka’s Kolar district, is approximately 10 km from the Narasapura and Jakkasandra industrial zones and about 38 km from Bengaluru. Spanning 666 acres, this industrial hub has become a preferred destination for high-value manufacturing, particularly in the aerospace and defense sectors. Bengaluru, often dubbed India’s aerospace capital, already hosts a thriving ecosystem of aviation and defense technology firms, making it an ideal location for TASL’s new venture.
The acquisition, at a cost of ?1.7 crore per acre, reflects TASL’s commitment to expanding its footprint in Karnataka, a state known for its skilled workforce, robust infrastructure, and industry-friendly policies. The lease agreement stipulates a 10-year term, during which TASL will pay an annual rent of ?17,011 and maintenance charges of ?2.55 lakh. Following the acquisition, TASL is expected to commence construction soon, with the facility poised to become operational in the coming years.
The new facility in Vemgal is set to play a crucial role in advancing India’s aerospace manufacturing capabilities. It will focus on aircraft production, including final assembly, alongside comprehensive MRO services, catering to both military and civilian aviation needs. This development aligns with India’s broader push for self-sufficiency in defense production, a priority underscored by the government’s emphasis on reducing reliance on foreign imports. The “Make in India” and “Atmanirbhar Bharat” programs have encouraged domestic companies like TASL to invest in critical sectors, fostering innovation and creating a robust supply chain for aerospace components.
TASL, a subsidiary of Tata Sons, has been a key player in India’s aerospace landscape, with established collaborations with global defense giants such as Lockheed Martin and Boeing. The company has previously contributed to projects like the production of Sikorsky S-92 helicopter cabins and aerostructures for Lockheed Martin’s C-130J Super Hercules. The Vemgal facility is expected to further enhance TASL’s role in the global aerospace supply chain, positioning India as an emerging hub for aircraft manufacturing and maintenance.
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