Airbus and Tata Advanced Systems Limited (TASL), the aerospace arm of the Tata Group, are collaborating to establish the Final Assembly Line (FAL) for H125 helicopters in Kolar, Karnataka. This facility supports Prime Minister Narendra Modi’s ‘Make in India’ initiative by promoting self-reliance in aerospace manufacturing.

India’s First Private Helicopter Assembly Facility
The new plant will be India’s first privately-led helicopter assembly unit. It will produce Airbus’s popular H125 light helicopters, catering to India and neighboring countries. This will be the fourth such assembly line globally, joining existing facilities in France, the US, and Brazil.
Production Capacity and Future Plans
Initially, the factory plans to produce 10 helicopters annually. Airbus projects a demand for around 500 H125 helicopters in India and South Asia over the next 20 years, which could lead to increased production capacity in the future.
Strategic Location in Karnataka
The plant will be located in the Vemgal Industrial Area near Bengaluru, where TASL already operates other aerospace facilities, including a satellite manufacturing unit. Karnataka was chosen over other states like Andhra Pradesh, Uttar Pradesh, and Gujarat due to its strong aerospace ecosystem, skilled workforce availability, and favorable government policies.
Government Support and Expansion Potential
Karnataka offers several incentives under its aerospace and defense policy, such as subsidies on land, capital investment, stamp duty, electricity, and production-linked incentives. The Vemgal site also has room for future expansion, including the construction of helipads for helicopter testing before delivery.
Industry Impact and Skill Development
Industry experts highlight that this project will boost indigenous manufacturing and help build advanced industrial clusters. It will drive skill development, attract supply chain investments, and generate high-value employment, positioning India as a key player in global aerospace manufacturing.
Related Developments
Tata and Airbus are also working on a final assembly line for the C295 aircraft in Vadodara, Gujarat. Gujarat has attracted significant investments recently, including semiconductor plants and an international diamond bourse, which has drawn some political controversy over alleged favoritism.