Andhra Pradesh has taken a decisive step toward building India’s first large-scale electric air taxi ecosystem, only days after Chief Minister N. Chandrababu Naidu announced plans to introduce drone taxis in the state within two years. The government has signed a partnership with Karnataka-based Sarla Aviation to establish the country’s first giga-scale eVTOL (electric vertical take-off and landing) manufacturing hub, one of the largest of its kind globally.
The facility, to be set up in Anantapur, will mirror advanced air mobility clusters seen in regions such as California and Munich. Sarla Aviation’s project, backed by Accel, has been titled the “Sky Factory” and represents an investment of ₹1,300 crore, positioning it among the world’s most ambitious eVTOL programs.
The agreement was formalized at the CII Partnership Summit 2025, where Sarla Aviation and the Andhra Pradesh Airport Development Corporation Ltd. (APADCL) signed a milestone MoU. The first phase involves a ₹330-crore investment and the creation of a 150-acre manufacturing and testing complex in Thimmasamduram, Kalyanadurg Mandal. The campus will feature advanced production lines, R&D facilities, composite labs, and a dedicated 2-km runway for DGCA-certified flight testing, enabling an end-to-end ecosystem for building, testing, certifying, and maintaining eVTOL aircraft.
The project is expected to generate highly skilled jobs, including 40 specialized roles and 140 indirect positions by 2027, with a planned expansion of an additional 350 acres in Phase 2. Once fully operational, the Sky Factory will be capable of producing up to 1,000 aircraft a year, including Sarla’s “Shunya” hybrid VTOL and a range of indigenous components such as electrical harnesses, landing-gear systems, and advanced composite structures.
“With the world’s biggest Sky Factory, we want to make India the nerve center for the next era of flight,” said Rakesh Gaonkar, co-founder and CTO of Sarla Aviation. “This giga facility will shape the aircraft of the future, create thousands of high-skill jobs, and position India as a global force in sustainable aerial mobility.”
The state government, through APADCL, will act as a key facilitator to accelerate implementation and ensure the ecosystem develops seamlessly. The collaboration aligns with Andhra Pradesh’s ambition to become a national hub for advanced manufacturing, aerospace innovation, and green mobility.
Founded in 2023 by veterans of the global eVTOL sector, Sarla Aviation is developing a six-seater electric air taxi designed to cut commuting times in India’s major metropolitan centers. Backed by Accel, the company aims to begin commercial operations by 2029 and sees India emerging as a major player in electric aviation.
