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Andhra Pradesh Signs Rs.1,300 Crore Deal with Sarla Aviation to Build World’s Biggest eVTOL ‘Sky Factory’

by Economy India
August 3, 2026
Reading Time: 2 mins read
Andhra Pradesh Signs Rs.1,300 Crore Deal

Andhra Pradesh Signs Rs.1,300 Crore Deal

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Anantapur, Andhra Pradesh (Economy India): Andhra Pradesh has taken a major step toward the future of aviation by signing an agreement with Sarla Aviation to establish what is being described as the world’s biggest eVTOL (electric vertical take-off and landing) manufacturing facility, named the Sky Factory, in Anantapur district.

The ambitious project will involve an investment of Rs.1,300 crore and will be developed across 500 acres in phases. Once fully operational, the facility is expected to manufacture up to 1,000 electric flying taxis annually, making it one of the largest eVTOL production hubs globally.

The Sky Factory will produce Sarla Aviation’s Shunya electric air taxis along with critical aerospace components such as composite structures, landing gear systems, electrical harnesses, and battery-integrated assemblies. The campus will also include research and development facilities, testing infrastructure, and a dedicated 2-kilometre runway for flight testing and certification.

The project will be developed in two phases. The first phase will see an investment of around 330 crore on approximately 150 acres, focusing on establishing the initial manufacturing and testing facilities. The second phase will expand the campus to the full 500 acres, significantly increasing production capacity.

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Officials believe the project will strengthen India’s position in the rapidly growing urban air mobility sector while creating thousands of skilled jobs in aerospace engineering, manufacturing, research, and maintenance. It is also expected to attract investments from component suppliers and technology companies, helping build a strong domestic aviation ecosystem.

Electric flying taxis are considered the next generation of urban transportation, offering faster, quieter, and zero-emission travel for short-distance routes. As countries around the world invest in advanced air mobility, the Andhra Pradesh project places India among the nations working to develop large-scale eVTOL manufacturing capabilities.

With this landmark initiative, Andhra Pradesh aims to emerge as a global hub for electric aviation technology, supporting India’s ambition to become a leader in sustainable aerospace manufacturing.

(Economy India)

Source: Economy India
Tags: Aerospace ManufacturingAnantapurAndhra PradeshEconomy IndiaElectric AircraftElectric AviationeVTOLFlying TaxiGreen TransportIndia AviationSarla AviationShunya eVTOLSky FactoryTechnology NewsUrban Air Mobility
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Economy India

Economy India

Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.

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