Puttaparthi: Rajnath Singh and N. Chandrababu Naidu on Thursday laid the foundation stones and presided over groundbreaking ceremonies for a series of strategic aerospace and defence manufacturing projects in Andhra Pradesh, marking one of the largest defence-industrial investments in the state.
The projects include a Core Integration and Flight Testing Centre for the Advanced Medium Combat Aircraft (AMCA) at Puttaparthi, a Naval Systems Manufacturing Facility in Anakapalli district, major private-sector ammunition and energetics plants, and a new Drone City in Kurnool.
Calling the occasion “truly historic,” Defence Minister Rajnath Singh said the initiatives would significantly strengthen India’s self-reliance in defence production and generate large-scale employment opportunities.
AMCA Flight Testing Centre to Fast-Track India’s Fifth-Generation Fighter Jet
The most prominent project announced was the Core Integration & Flight Testing Centre of the Aeronautical Development Agency, an affiliate of Defence Research and Development Organisation (DRDO).
The facility will be established in Puttaparthi, located in Sri Sathya Sai district, at an estimated cost of ₹2,000 croreand will play a crucial role in the development of India’s fifth-generation Advanced Medium Combat Aircraft(AMCA).
The overall AMCA programme has an outlay of approximately ₹15,000 crore.
Rajnath Singh said Puttaparthi is set to become one of the select global locations from where a fifth-generation combat aircraft will take to the skies.

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BDL to Set Up ₹480 Crore Naval Systems Manufacturing Facility
Bharat Dynamics Limited (BDL) will establish a ₹480 crore Naval Systems Manufacturing Facility at T. Sirasapalli village in Anakapalli district.
The facility will manufacture:
- Autonomous Underwater Vehicles (AUVs)
- Underwater Countermeasure Systems
- Next-Generation Torpedoes
- Critical imported components and subsystems
The project is expected to significantly boost the capabilities of the Indian Navy and strengthen India’s maritime security and Blue Economy.
Private Sector to Invest in Ammunition and Energetics Facilities
Agneyastra Energetics Defence Facility – ₹1,500 Crore
Bharat Forge Limited subsidiary Agneyastra Energetics Limited will establish a Defence Energetics Facility at Madakasira in Sri Sathya Sai district with an investment of ₹1,500 crore.
HFCL Ammunition and Electric Fuse Plant – ₹1,200 Crore
HFCL Limited will set up an Ammunition and Electric Fuses Plant in the same region with an investment of around ₹1,200 crore.
Rajnath Singh described fuses as one of the most critical components in ammunition and said the project would mark a new chapter in India’s self-reliance in ammunition manufacturing.
Drone City to Come Up in Kurnool
A consortium of eight drone companies has joined hands to establish a dedicated Drone City in Kurnool, which is expected to become a major manufacturing and innovation hub for unmanned systems.
Rajnath Singh said drone technology has become a game-changer in modern warfare and is increasingly important in agriculture, logistics, and surveillance.
He expressed confidence that Kurnool would soon emerge as the “Drone Hub of India,” comparable to Surat’s status as the Diamond City and Bengaluru’s reputation as India’s Silicon Valley.

Defence Production to Reach ₹1.75 Lakh Crore Soon: Rajnath Singh
Highlighting the transformation in India’s defence sector, Rajnath Singh said:
- Defence production has increased from ₹46,000 crore in 2014 to nearly ₹1.54 lakh crore
- It is expected to touch ₹1.75 lakh crore within the next one to two months
- Defence exports have risen from around ₹600 crore a decade ago to nearly ₹40,000 crore
He credited the Narendra Modi government’s reforms and the public-private partnership model for turning defence manufacturing into a national movement.
Andhra Pradesh to Lead India’s Defence Manufacturing Push
Speaking at the event, N. Chandrababu Naidu said the state is building a “New Andhra Pradesh” based on three pillars:
- Innovation
- Infrastructure
- Industrialisation
He urged companies and entrepreneurs to “Design in Andhra Pradesh, Make in Andhra Pradesh, Lead from Andhra Pradesh.”
Naidu said the projects would not only strengthen national defence preparedness but also accelerate industrial growth and create thousands of jobs in the state.
Employment and Ecosystem Development
According to Rajnath Singh, these projects will act as powerful “Growth Poles” by:
- Creating large-scale direct and indirect employment
- Integrating engineering colleges and ITIs into defence manufacturing
- Developing strong local supply chains
- Supporting MSMEs and start-ups
- Building a high-technology ecosystem in the region
Dignitaries Present
The event was attended by:
- Kinjarapu Rammohan Naidu
- Sanjeev Kumar
- Senior officials of the Ministry of Defence
- Industry representatives and Andhra Pradesh ministers
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