Defence Minister Rajnath Singh laid the foundation stone for the Aircraft Integration and Flight Test Centre of Aeronautical Development Agency (ADA) and tactical defence projects in this town in Sri Sathya Sai district, Andhra Pradesh, on Friday.
He, along with Chief Minister N. Chandrababu Naidu, participated in the groundbreaking ceremony for various aerospace and defence projects, including naval systems facility, defence energetics, ammunition plants and Drone City.
The Advanced Medium Combat Aircraft (AMCA) project, being established by the ADA under the Defence Research and Development Organisation (DRDO), will comprise the core integration, development and flight-testing complex for India’s flagship indigenous fifth-generation fighter aircraft programme.
The AMCA project is estimated at a cost of Rs 15,803 crore and is expected to generate employment opportunities for 7,500 people. The foundation stone was also laid for a new BDL Naval Systems Manufacturing Facility, which will come up at T. Sirasapalli, Anakapalli district.
Grounding ceremonies were also held for the Defence Energetics Facility and Ammunition Hub, to come up at Madakasira in Sri Sathya Sai district and an array of projects for Drone City, Kurnool. The event also witnessed the exchange of Defence MoUs with the Government of Andhra Pradesh, further strengthening collaboration in defence manufacturing, aerospace innovation, and next-generation drone technologies.
Rajnath Singh, Chandrababu Naidu, Civil Aviation Minister Ram Mohan Naidu, state IT and Electronics Minister Nara Lokesh, and others viewed an exhibition of defence products, featuring items such as missiles, hand grenades, modern firearms, and a fighter aircraft prototype.
The AMCA programme is designed to advance India’s self-reliance in next-generation combat aviation technologies, including stealth systems, advanced avionics and integrated combat capabilities. Spread across nearly 650 acres in Puttaparthi, the proposed complex will serve as a national hub for aircraft integration, validation, flight testing and certification activities.
The project is expected to significantly strengthen India’s strategic aerospace infrastructure while reducing dependence on external testing ecosystems. The project is expected to generate nearly 7,500 high-skilled direct employment opportunities over its lifecycle and catalyse the growth of a wider aerospace and defence manufacturing ecosystem in the Rayalaseema region.
The Government of Andhra Pradesh said it has been actively positioning the state as a preferred destination for high-technology manufacturing sectors by leveraging its industrial infrastructure, port connectivity, skilled workforce and investor-friendly policies. The upcoming event is expected to further strengthen Andhra Pradesh’s standing in India’s evolving defence and aerospace landscape.
According to an official release, Sri Sathya Sai District has rapidly emerged as a high-potential destination for advanced manufacturing and aerospace-linked investments. Its strategic proximity to Bengaluru aerospace ecosystem, including Kempegowda International Airport and major defence establishments, positions the region as a natural extension of India’s southern aerospace corridor.
The district has also witnessed growing industrial activity across aerospace, defence, electronics, automobile components, metals and allied sectors. Andhra Pradesh has already established a strong presence in defence manufacturing through investments by leading companies such as Bharat Electronics Limited, Bharat Dynamics Limited and Kalyani Strategic Systems.
Under the Aerospace and Defence Policy 2025-30, the state has identified six specialised clusters focused on naval systems, missiles and ammunition, unmanned systems, aerospace and electronics, aircraft components, defence electronics, precision manufacturing, dedicated testing facilities and defence R&D, creating targeted opportunities for global OEMs, Tier-1 suppliers and technology companies.