
Defence Minister Rajnath Singh, Andhra Pradesh Chief Minister N Chandrababu Naidu, and Minister Nara Lokesh on Friday laid the foundation stone for the ₹16,000 crore Advanced Medium Combat Aircraft (AMCA) project in Puttaparthi, Sri Sathya Sai district. According to the latest official release from AP CMO, the project is estimated at ₹15,803 crore and is expected to generate employment opportunities for nearly 7,500 people. The facility will be established in Puttaparthi and is positioned to strengthen India's indigenous defence and aerospace manufacturing ecosystem. The initiative is part of the state government's broader "Drone City" and aerospace manufacturing push, showcasing the capabilities of India's defence sector and establishing a dedicated township for aerospace and defence manufacturing.
The new infrastructure is expected to support manufacturing, integration, and aerospace component production linked to next-generation combat aviation programmes. As reported by AP CMO, the project will include defence industrial facilities and supporting aerospace infrastructure in the region. The project is spread across nearly 650 acres in Puttaparthi and is expected to drive the development of an integrated aerospace township while creating employment opportunities for nearly 7,500 people. The AMCA Aircraft Integration and Flight Testing Centre, to be developed by the Aeronautical Development Agency, will facilitate aircraft integration, testing, validation and certification, accelerating the development of India's Advanced Medium Combat Aircraft programme. The facility's strategic location near the Bengaluru-based Aeronautical Development Agency (ADA) facility provides significant advantages for dedicated flight-testing ranges and faster execution.
The AMCA is a proposed fifth-generation stealth fighter jet designed for the Indian Air Force (IAF). According to AP CMO, the twin-engine aircraft is intended to combine stealth features, internal weapons bays, advanced sensors, electronic warfare systems, and network-centric warfare capabilities. The AMCA Mk-1 variant is expected to use the US-based General Electric's F414 engine, while a more powerful engine may power Mk-2 versions. The fighter is planned in multiple variants and is expected to feature artificial intelligence-assisted systems, sensor fusion, and advanced stealth coatings.
The development comes as India accelerates efforts to reduce dependence on imported fighter aircraft and build an indigenous stealth fighter under the AMCA programme. As reported by AP CMO, the AMCA programme is being led by the Aeronautical Development Agency under the Defence Research and Development Organisation (DRDO), with manufacturing expected to involve participation from the private sector as well. The DRDO shortlisted three private-sector contenders earlier this year for prototype development, including Tata Advanced Systems Limited as a standalone bidder, a consortium led by Larsen & Toubro with Bharat Electronics Limited, and another consortium led by Bharat Forge Ltd.
The project's selection for Andhra Pradesh was the result of persistent efforts by Chief Minister N Chandrababu Naidu and his son IT Minister Nara Lokesh. According to sources, the biggest advantage for Andhra Pradesh was the availability of land and its proximity to the Bengaluru-based Aeronautical Development Agency (ADA) facility. As reported by ET, Lokesh made the initial pitch for the project on February 5, 2025, meeting Defence Minister Rajnath Singh in Delhi and requesting the AMCA project be allotted to Andhra Pradesh. The move triggered controversy as it was seen by the Karnataka government as an attempt to draw away investment and Hindustan Aeronautics Limited. However, Naidu persisted with the effort and followed up with another letter in September 2025, also deputing industries minister TG Bharat to pursue the matter with the defence minister.