Tata-Airbus to Build Helicopter Plant in Karnataka: Here’s How It Won the Deal

Tata Group’s aerospace arm, Tata Advanced Systems (TASL) and European aircraft maker Airbus have planned to set up the Final Assembly Line (FAL) for assembling H125 helicopters in Karnataka’s Kolar. The assembling unit will produce Airbus’ best-selling H125 helicopter from its civil range for India and the neighbouring countries and is set to be the fourth such unit globally after France, US and Brazil, the Economic Times reported. 

The facility will be India’s first privately led helicopter assembly unit and is set to give a boost to Prime Minister Narendra Modi-led government’s Make in India initiative in aerospace manufacturing.

Initially, it will start with a production capacity of 10 helicopters per year but will eventually expand production. The European aircraft giant has estimated a demand for 500 light helicopters of the H125 class in the country and South Asia in the coming two decades. 

Apart from this, the two companies have also planned to set up FAL for C295 aircraft in Vadodara, Gujarat. 

Why Karnataka

Karnataka was preferred over several other states, including Andhra Pradesh, Uttar Pradesh and Gujarat, mainly as it has a well-established aerospace manufacturing ecosystem. The Tata Group-owned firm recently reportedly purchased 7.4 lakh 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 (MRO) facilities. 

Karnataka, under its aerospace and defence policy, has offered subsidies on land, including capital investment, stamp duty, incentives in electricity charges and production-linked incentives of 1% of annual turnover for a period of 5 years. 

“The locations were apprised based on their logistics facility, expansion potential, availability of skilled workforce and promises of the state government like fast-track approval of permissions,” the Economic Times, citing a source. 

The announcement regarding the upcoming facility was made last year. 

“We are pleased to partner with Airbus to establish the final assembly line for H125 helicopters in India. The project will enhance helicopter manufacturing capabilities in India, and support growth of civil aviation in India,” CEO and MD, TASL, Sukaran Singh had said.