Date: 2026-05-15Category: Press ReleaseState: Union GovernmentCountry: India
Raksha Mantri and Andhra Pradesh Chief Minister lay foundation stones for AMCA’s Core Integration & Flight Testing Centre and Naval Systems Manufacturing Facility
**Executive Summary**
On May 15, 2026, the Raksha Mantri and the Chief Minister of Andhra Pradesh launched several strategic aerospace and defence projects in Andhra Pradesh, including a Core Integration & Flight Testing Centre for the Advanced Medium Combat Aircraft (AMCA). These initiatives aim to achieve "Aatmanirbharta" (self-reliance) and are projected to help national defence production reach a record ₹1.75 lakh crore within the next two months. The projects focus on indigenous manufacturing of fifth-generation aircraft, naval systems, ammunition, and drone technology to bolster national security.
**Key Points / Main Content**
* **Strategic Aerospace and Naval Facilities:**
* Foundation laid for the AMCA Core Integration & Flight Testing Centre at Puttaparthi (estimated cost: ₹2,000 crore) to accelerate the development of fifth-generation indigenous aircraft.
* Establishment of a Naval Systems Manufacturing Facility in Anakapalli district (₹480 crore) by Bharat Dynamics Limited to produce autonomous underwater vehicles and next-generation torpedoes.
* **Private Sector and Munitions Manufacturing:**
* Launch of the Defence Energetics Facility by Agneyastra Energetics Limited (₹1,500 crore investment) to produce advanced weaponry.
* Establishment of an Ammunition & Electric Fuse Plant by HFCL Limited (₹1,200 crore investment) to manufacture critical components for the defence forces.
* **Technological Innovation and "Drone City":**
* A consortium of eight companies is collaborating to establish a "Drone City" in Kurnool, aiming to transform the region into a national hub for drone technology.
* Implementation of the "Whole of People" approach and Public-Private Partnership (PPP) models to drive defence manufacturing.
* **Economic Milestones and Production Targets:**
* Defence production is expected to rise from the current ₹1.54 lakh crore to ₹1.75 lakh crore within 1–2 months.
* Defence exports have reached approximately ₹40,000 crore, a significant increase from ₹600 crore a decade ago.
**Impact Analysis**
**Defence Forces (Army, Navy, and Air Force)**
**Impact**
The forces will benefit from enhanced preparedness and reduced dependence on imports through the domestic supply of fifth-generation aircraft, advanced underwater weapons, and state-of-the-art ammunition fuses.
**Action Required**
The Services must prepare to integrate these upcoming indigenous platforms and systems into their operational frameworks.
**Private Sector Industry and MSMEs**
**Impact**
Significant investment opportunities and the establishment of robust supply chains will allow private entities and small-scale industries to flourish within a high-end technology ecosystem.
**Action Required**
Companies and consortia must fulfill MoUs and leverage the "Make-in-India" initiative to establish and operationalize the designated defence units.
**Local Youth and Academic Institutions**
**Impact**
The projects act as "Growth Poles," creating massive employment opportunities and providing a platform for students in engineering colleges and ITIs to work with high-end technology.
**Action Required**
Academic institutions need to become integral parts of the initiative to provide the skilled workforce required for these high-tech manufacturing facilities.
**Government of Andhra Pradesh**
**Impact**
The state is positioned as a leader in "Innovation, Infrastructure & Industrialisation," specifically as a national "Drone Hub" and a center for aerospace excellence.
**Action Required**
The state government must continue to extend full cooperation to entrepreneurs under the "Design-in-Andhra Pradesh" and "Make-in-Andhra Pradesh" slogans.
Key Entities Referenced
Advanced Medium Combat Aircraft (AMCA): India's fifth-generation indigenous fighter jet programme for which a major Core Integration & Flight Testing Centre is being established.
Aeronautical Development Agency (ADA): A DRDO-affiliated organisation responsible for the development of the AMCA and establishing its flight testing infrastructure.
Drone City: A strategic industrial initiative in Kurnool established by a consortium of eight companies to create a national hub for drone technology.
Andhra Pradesh: The central state where multiple strategic defence 'Growth Pole' projects are being developed across Sri Satya Sai, Anakapalli, and Kurnool districts.
Naval Systems Manufacturing Facility: A Bharat Dynamics Limited (BDL) project focused on the indigenous manufacture of autonomous underwater vehicles and next-generation torpedoes.
Ministry of Defence
Raksha Mantri and Andhra Pradesh Chief
Minister lay foundation stones for AMCA’s Core
Integration & Flight Testing Centre and Naval
Systems Manufacturing Facility
Grounding ceremonies held for private sector projects for
Ammunitions, Propellants & Fuses; 8 companies collaborate
to establish Drone City in the state
Aatmanirbharta in defence is a critical imperative for national
security: RM
“These ‘Growth Pole’ projects would create massive
employment opportunities”
“Nation moving forward with Whole of People approach; PPP
model has transformed defence manufacturing into mass
movement”
Defence production set to reach all-time high figure of 1.75
lakh crore within 1-2 months, says Shri Rajnath Singh
Posted On: 15 MAY 2026 3:46PM by PIB Delhi
Raksha Mantri Shri Rajnath Singh and Andhra Pradesh Chief Minister Shri N Chandra Babu Naidu laid
the foundation stones and presided over the grounded ceremonies for a range of strategic aerospace and
defence projects at Puttaparthi in Sri Satya Sai district of Andhra Pradesh on May 15, 2026. The
foundation stones were laid for the Core Integration & Flight Testing Centre at Puttaparthi to fast-track the
development of Fifth-Generation Advanced Medium Combat Aircraft (AMCA) & other future indigenous
platforms, and the Naval Systems Manufacturing Facility at T Sirasapalli village in Anakapalli district to
cater to the requirements of advanced underwater weapon & naval combat systems.The grounding ceremonies were carried out for the Defence Energetics Facility and the Ammunition &
Electric Fuses Plant at Madakasira in Sri Satya Sai District. In addition, a consortium of eight drone
companies have joined forces to establish a Drone City in Kurnool. Various companies also exchanged
MoUs with the government of Andhra Pradesh to establish defence units in the state.
In his address, Raksha Mantri described the commencement of the projects as “truly historic”, asserting
that Aatmanirbharta in defence manufacturing is a critical imperative to safeguard national interests in the
current era of global turbulence. He stated that, in matters of national security, the aim must be to achieve
self-reliance rather than perpetual dependence on other nations.“These projects will cater to all the branches of the defence forces. This strategic diversification is not
coincidental. Our objective is crystal clear: We are advancing with the resolute goal of achieving self-
reliance in the defence sector, ensuring that the three Services are future-ready. The projects will prove to
be a milestone in the nation’s pursuit of self-reliance and Andhra Pradesh’s journey of development,” said
Shri Rajnath Singh.
Raksha Mantri added that these projects will serve as powerful “Growth Poles”, resulting in massive
employment generation. “The local academic institutions, including engineering colleges and ITIs, will
become integral parts of this initiative. Robust supply chains will be established, and small-scale
industries will flourish. The local youth will gain a platform to work, learn, and grow within the realm of
high-end technology. This will foster the development of an entire ecosystem, which will play a key role
in the holistic development of the state,” he said.
The total outlay for the AMCA programme is around Rs 15,000 crore, and the Core Integration & Flight
Testing Centre of Aeronautical Development Agency, an affiliate organisation of DRDO, is a vital
component of the project. The facility is being established at a cost of approx. Rs 2,000 crore. “Puttaparthi
is set to join the exclusive league of global destinations from which a fifth-generation aircraft will take to
the skies. It will become the birthplace of an aircraft capable of annihilating the enemy in the blink of an
eye,” stated Shri Rajnath Singh.The Naval Systems Manufacturing Facility, a Rs 480 crore project of Bharat Dynamics Limited (BDL),
will focus on autonomous underwater vehicles, underwater counter-measure systems, and next-generation
torpedoes. It will manufacture several critical components and sub-systems that the nation has, until now,
been importing from abroad. Raksha Mantri exuded confidence that the project will significantly enhance
the Indian Navy's capabilities and prove to be a game-changer for the nation’s Blue Economy and
maritime security.
The Defence Energetics Facility of Agneyastra Energetics Limited, a subsidiary of Bharat Forge Limited,
is being set-up with an investment of Rs 1,500 crore. Shri Rajnath Singh hoped that the facility will
produce weapons that will bolster India’s preparedness for the battles of the future.
The Ammunition and Electric Fuse Plant of HFCL Limited, is being established with an investment of
around Rs 1,200 crore. Terming ‘fuse’ as the most critical component of any ammunition, Raksha Mantri
expressed confidence that the project will mark the beginning of a new chapter in the country’s journey
towards self-reliance in ammunition manufacturing. “The state-of-the-art fuses manufactured at the plant
will significantly bolster the capabilities of our defence forces,” he said.On the upcoming Drone City, Shri Rajnath Singh commended the young entrepreneurs for their
collaborative vision, and said that these units, though individually small in scale, are vital components
which will transform the vision of Make-in-India into a tangible reality. “Drone technology has emerged
as a true game changer in modern warfare. Moreover, its role is rapidly expanding across other sectors. I
am confident that the drones produced here will carry India’s banner of excellence across the globe. Just
as Surat is known as the ‘Diamond City’ and Bengaluru as India’s ‘Silicon Valley,’ this region will soon be
recognised as the ‘Drone Hub’ of the nation,” he said.
Raksha Mantri highlighted that, over the past 10 years, the Government, under the leadership of Prime
Minister Shri Narendra Modi, has strived to bridge the divide between the public and private sectors. He
added that, today, the nation is moving forward not merely with a Whole of Government approach, but
with a Whole of Country and Whole of People approach. “Be it an individual innovator, a large
corporation, a start-up, or an MSME, everyone is contributing to national security. The Public-Private
Partnership model has successfully transformed defence manufacturing into a mass movement,” he said.
Listing out the progress achieved due to the Government’s efforts, Shri Rajnath Singh stated that the
defence production has risen to an all-time high of nearly Rs 1.54 lakh crore from just Rs 46,000 crore in
2014. He expressed confidence that the defence production will reach an all-time high figure of 1.75 lakh
crore within one or two months. He added that defence exports, which were around Rs 600 crore a decade
ago, have touched a record approx. Rs 40,000 crore today.
Raksha Mantri concluded his address by urging the people to remain vigilant in the present era of
misinformation. “It isn’t necessary that our adversaries try to attack us solely with weapons. They may
attempt to cause harm by spreading rumors or misinformation. They might spread rumors claiming that
the country has run out of oil, or a calamity is about to befall the nation. This is done with the specific
intent of creating chaos and anarchy in the country. We must remain extremely vigilant as a single piece of
misinformation can prove to be harmful. If the Prime Minister has advised us to utilise public transport or
conserve fuel, it should be viewed in the spirit of advice,” he said.Shri Rajnath Singh emphasised that the task of nation-building is accomplished through collective effort.
“Let us join hands and build a nation that not only safeguards itself but, with the spirit of universal
brotherhood, is also capable of extending assistance to the entire world,” he said.
Speaking on the occasion, the Chief Minister of Andhra Pradesh commended the efforts of PM Modi and
Raksha Mantri towards strengthening India’s defence capabilities and modernising the military with
sustained focus on indigenisation & self-reliance. He stated that the nation’s preparedness and global
standing in defence & aerospace sectors have enhanced due to the continued emphasis on reforms,
investment and innovation.
Shri N Chandra Babu Naidu described Operation Sindoor as a proud example of India’s growing strength
& technological progress, and the success of Aatmanirbharta in defence. He expressed confidence that the
facilities, for which the foundation stones have been laid, will bolster the defence preparedness of the
country and foster growth in the region.The Chief Minister of Andhra Pradesh called upon the industries and entrepreneurs to “Design-in-Andhra
Pradesh, Make-in-Andhra Pradesh, lead-from-Andhra Pradesh”, extending the State Government’s full
cooperation. “New Andhra Pradesh is being built with three strengths - Innovation, Infrastructure &
Industrialisation. As India marches towards the goal of Viksit Bharat, Andhra Pradesh will lead from the
front,” he said.
Minister of Civil Aviation Shri Kinjarapu Rammohan Naidu, Ministers in the AP Government, Secretary
(Defence Production) Shri Sanjeev Kumar, other senior officials of Ministry of Defence, and industry
representatives were present on the occasion.
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