Andhra Pradesh has entered into an agreement with Karnataka-based Sarla Aviation to set up India’s first giga-scale electric air taxi manufacturing cluster in Anantapur district.

The project, with an investment of Rs 1,300 crore, represents one of the country's strongest steps toward next-generation aviation. Called Sky Factory, this factory will be built in Anantapur district and is a joint project with Sarla Aviation, a company based in Karnataka. The factory, with an investment will produce up to 1,000 electric aircraft each year, including the Shunya hybrid vertical take-off and landing (VTOL) aircraft from Sarla Aviation. The Sky Factory will also make parts like landing gear and electrical systems for these aircraft.

Once ready, it will be one of the world’s biggest hubs for electric air taxi production. The project is part of Andhra Pradesh’s plan to become a leader in green aviation and advanced manufacturing. The state government is helping to speed up the process to ensure the region is ready for this new era of aerial mobility.