India’s next-generation stealth fighter programme is set to take a major step forward with manufacturing planned in Puttaparthi. The Andhra Pradesh cabinet has approved the allocation of 600 acres to the Defence Research and Development Organisation for the project.

Massive Defence Investment and Production Plan
Around 140 units of the Advanced Medium Combat Aircraft (AMCA) are expected to be built at the facility. Officials estimate the project could attract investments worth nearly ₹1 lakh crore, making it one of India’s largest defence manufacturing initiatives.
From Proposal to Approval
The decision follows sustained efforts by Andhra Pradesh leadership, including Chief Minister N. Chandrababu Naidu, who had earlier pitched the idea of hosting the AMCA production unit in the state during discussions with Defence Minister Rajnath Singh.
Design in Bengaluru, Assembly in Puttaparthi
Core design, systems integration, and testing will be handled by the Aeronautical Development Agency based in Bengaluru. Modules will then be transported to Puttaparthi for final assembly and prototype testing.
Land Allocation and Infrastructure Push
The state government has offered land free of cost for the full ecosystem, including a flight testing complex, residential township for scientists, and production infrastructure. The assembly line will be developed in partnership with private industry players.
Industry Participation and Key Players
Three major defence companies have been shortlisted to support production:
- Tata Advanced Systems
- Larsen & Toubro
- Bharat Forge
Why Puttaparthi Was Chosen
Officials say the location was selected due to easier airstrip access, low air traffic, and smoother coordination for flight testing. Its proximity to Bengaluru also helps connect manufacturing with the design hub efficiently.
Dedicated Flight Testing Advantage
A key requirement for the project is a dedicated flight testing range located close to the assembly line. This setup is expected to reduce development time and speed up aircraft testing cycles significantly.
Boost for Regional Aerospace Ecosystem
Experts believe the project could transform Andhra Pradesh into a major aerospace hub, attracting suppliers, vendors, and supporting industries around the main facility.
Shift in Defence Manufacturing Landscape
Previously, there was competition between states over hosting the project, with Karnataka expressing concerns about aerospace work shifting away from Bengaluru. With this decision, state-run Hindustan Aeronautics Limited is no longer in contention for manufacturing the next-generation fighter jets.
