The manufacturing unit for India’s next-generation stealth fighter jets will come up on 600 acres in Puttaparthi, about 50 kilometres from the Karnataka border. The project, to be set up with an investment of ₹15,803 crore, marks a major win for Naidu, a key NDA ally. Several other states were also vying for the facility. ET was the first to report, in its May 3 edition, that Andhra Pradesh had secured the project.
The initial pitch for the project was made by Naidu’s son and IT minister Nara Lokesh in February 2025. Speaking at the groundbreaking ceremony in Puttaparthi, Lokesh said, “On February 5, 2025, I met defence minister Rajnath Singh in Delhi and presented Andhra Pradesh’s vision before him. I requested that the AMCA project be allotted to Andhra Pradesh. Since then, our government has been working relentlessly on this mission.”
This was followed by Naidu making a pitch for the AMCA project and a defence corridor in May 2025. The move triggered a furore, 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. He also deputed industries minister TG Bharat to pursue the matter with the defence minister.
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. A source told ET, “AMCA facility needs a dedicated flight-testing range. An assembly line is planned close to the flight path. A dedicated flight-testing range reduces development time and ensures faster execution. This range needed to be close to ADA, headquartered in Bengaluru. It was not possible to have this in Bengaluru due to load on the airport. This is why DRDO was looking for land near Bengaluru.”
