India’s First Electric Air Taxi Hub, Inspired by a Pioneering Female Pilot, Set for Andhra Pradesh in Rs.1,300 Crore Deal

In a landmark move for India’s aviation and green technology sectors, the Andhra Pradesh government has inked a memorandum of understanding (MoU) with Sarla Aviation to build the nation’s first gigascale electric air taxi hub, a Rs.1,300 crore project poised to redefine urban mobility.

The ambitious venture, named ‘Sky Factory,’ will be established in the Anantapur district and is designed to position India as a key global player in the emerging electric vertical take-off and landing (eVTOL) aircraft market. The company’s name pays homage to Sarla Thakral, who in 1936 became India’s first female pilot to earn an aircraft license, symbolizing a new era of pioneering aviation spirit.

The Giga-Facility Blueprint

According to the agreement signed at the CII Partnership Summit 2025, the project will unfold in two phases. The initial phase, with an investment of Rs.330 crore, will see the development of a 150-acre campus near Thimmasamudram in the Kalyanadurg Mandal. This facility will house advanced manufacturing lines, research and development centers, composite laboratories, and a dedicated two-kilometer runway for testing and DGCA certification.

A subsequent expansion will enlarge the campus by 350 acres, bringing the total investment to Rs.1,300 crore. When fully operational, the hub aims for an annual production capacity of 1,000 next-generation aircraft, including Sarla’s flagship six-seater, zero-hybrid VTOL model. The integrated cluster, modeled on global hubs in California and Munich, will also manufacture critical components like electrical harness systems and advanced composite structures.

The Andhra Pradesh Airport Development Corporation Limited (APADCL) has been tasked with fast-tracking the project’s clearances and infrastructure.

Driving Green Mobility and Economic Growth

The primary objective is to commence commercial eVTOL operations by 2029, introducing drone taxi services to decongest urban travel in major Indian cities. These battery-powered aircraft can take off and land vertically, offering a sustainable alternative to traditional ground transportation.

“With the world's biggest sky factory, we want to make India the nerve center of the next era of flight,” said Rakesh Gaunker, Co-founder and Chief Technology Officer of Sarla Aviation. “This giga facility will shape future aircraft, create thousands of high-skill jobs, and make India a global force in sustainable aerial mobility. Our goal is simple: India should design, build, test, fly, and operate the world's most advanced eVTOL systems from an integrated campus.”

The project is projected to create 180 direct and indirect jobs by 2027, with numbers expected to swell into the thousands as the facility scales up, providing a significant boost to the local economy and establishing Andhra Pradesh as a capital for advanced manufacturing.

Founded in 2023 in Karnataka and backed by private equity fund Excel, Sarla Aviation is led by veterans of the global eVTOL industry. The company plans to roll out its first drone taxi services in Andhra Pradesh within two years, aligning with a global eVTOL market forecast to be worth billions of dollars by 2030. This initiative dovetails with national schemes like UDAN to enhance air connectivity and marks a decisive step toward India’s sustainable transportation future.