Tata Advanced Systems Buys 7.4 Lakh Sq Ft Land in Karnataka for Aircraft Manufacturing

Tata Advanced Systems has acquired 7.4 lakh square feet of land in Karnataka’s Vemgal Industrial Area for ₹29.34 crore. The land will be used for aircraft manufacturing, including final assembly, maintenance, repair, and overhaul (MRO).

The Tata Group company purchased the land from the Karnataka Industrial Areas Development Board (KIADB) under a lease-cum-sale agreement registered on February 24, 2025.

This move aligns with India's Make in India and Atmanirbhar Bharat initiatives, strengthening domestic aerospace capabilities and boosting employment. Karnataka has been a preferred destination for aerospace investments, with Bengaluru already serving as a major hub for aviation and defense technology.

Key Details:

• Location: Vemgal Industrial Area, Karnataka, near Kolar-Chikkaballapur Road (SH-96).
• Transaction Type: Lease-cum-sale agreement registered on February 24, 2025.
• Stamp Duty Paid: ₹1.5 crores
• Cost per Acre: ₹1.7 crore.
• Lease Term: 10 years, with an annual rent of ₹17,011 and maintenance charges of ₹2.55 lakh.
• Industrial Area Size: 666 acres.
• Strategic Importance: Supports India’s defense aviation sector, strengthens self-reliance, and enhances global aerospace collaborations.

Why Karnataka?

Karnataka has been a preferred destination for aerospace investments, with Bengaluru already serving as a major hub for aviation and defense technology. The state’s progressive policies, skilled workforce, and strong infrastructure make it attractive for high-value manufacturing.

According to Government reports, the Aerospace industry has the potential to reach $70 billion by 2030.

The government's push for self-reliance and initiatives like Make in India are attracting foreign investments, leading to international partnerships with countries like France, Russia, and the U.S.