TATA group would set up an aerospace and precision engineering unit near Hyderabad in Andhra Paradesh. The state had also tried to lure TATA for the relocation of Nano car plant. But Gujarat chief minister Narendra Modi successfully captured the small car project. 

The proposed aerospace and precision engineering unit would be one of its kinds in India. TATA would develop precision engineering systems for aviation industry, advanced surveillance systems as well as MRO (maintenance, repair and overhaul) operations. It would work in co operation with DRDL, DRDO, RCI, DLRL, BDL and BHEL.

TATA group wants 50 acres of land in the 250-acre Aerospace and Precision Engineering Special Economic Zone (SEZ). The state government has already identified 351 acres of land at Adibatla village for proposed SEZ and auxiliary units. 

The center government has already approved the SEZ and notification is likely to come within few days. TATA group’s subsidiary, Tata Advance System Ltd would complete the project.

AP chief minister, Y S Rajasekhara Reddy said TATA group has promised to increase investment in the state. TATA group chairman, Ratan Tata has appraised the state regarding this defense and aerospace utility through a letter.