logo
ENع
Airbus-Tata Chopper Unit Lands in Karnataka

Airbus-Tata Chopper Unit Lands in Karnataka

Time of India27-05-2025

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.

Hashtags

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trouble between AI's power couple: What's brewing between Microsoft and OpenAI?
Trouble between AI's power couple: What's brewing between Microsoft and OpenAI?

Time of India

timean hour ago

  • Time of India

Trouble between AI's power couple: What's brewing between Microsoft and OpenAI?

The biggest partnership in the artificial intelligence (AI) world, between Microsoft and OpenAI , is showing signs of cracks. Microsoft invested $1 billion in the ChatGPT maker in 2019, ahead of the generative AI boom . The companies then rode the wave to the top, with the software maker injecting billions more in the company in the following years. But then disagreements arose over controlling AI technology and computing resources, intellectual property rights, as well as OpenAI's organisational transition plans and competitive tensions. These issues have made the once-close partnership shaky, and may fundamentally change it. What's happened? Live Events OpenAI needs Microsoft's approval to complete its transition into a public-benefit corporation. But sources told Reuters the companies have not been able to agree on details even after months of negotiations. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Tensions have risen between the two sides after reports emerged that OpenAI is considering a "nuclear option", accusing Microsoft of anticompetitive behaviour. The companies are discussing revising the terms of Microsoft's investment, including the future equity stake it will hold in OpenAI, the report said, adding that the ChatGPT owner wants to modify existing clauses that give Microsoft exclusive rights to host OpenAI models in its cloud. Reuters reported that Microsoft was even ready to walk away from its high-stakes negotiations with OpenAI over the future of its alliance. Windsurf issue The key issue in the dispute is now Microsoft's access to OpenAI's intellectual property. OpenAI even wanted to exclude Microsoft's access to AI coding startup Windsurf, which it had acquired, due to competing products. OpenAI acquired Windsurf, an AI-assisted coding tool formerly known as Codeium, for about $3 billion, marking the company's largest acquisition to date. Microsoft-owned Github offers a competing AI tool for programmers. Investors have also poured money into a new crop of startups offering similar tools, including Anysphere, the startup behind Cursor. Analysts have said that the partnership between the legacy giant and the AI startup was always unstable, with Microsoft testing alternatives and preparing for a way forward without OpenAI.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store