The Andhra Pradesh government led by CM N Chandrababu Naidu has signed a Memorandum of Understanding (MoU) with aerpace Industries Limited for participation in the development of India’s First Drone City in the Kurnool region. The Andhra Pradesh Economic Development Board (APEDB) signed the MoU, marking a significant step in India’s mission to advance indigenous drone technologies, aerospace engineering, and unmanned systems innovation.
The Drone City project is a flagship project of N. Chandrababu Naidu, who has been a advocating technology-led development in line with Viksit Bharat vision. Andhra Pradesh aims to build a structured, future-ready ecosystem that positions India as a global hub for drone research, manufacturing, testing, and advanced mobility solutions.
Speaking about the initiative, Chief Minister Naidu emphasized the transformational potential of drone technologies in national development and highlighted Andhra Pradesh’s commitment to fostering a world-class innovation environment. The MoU enables aerpace to align its long-term strategy with the Drone City master plan. aerpace has been in active discussions with the State Government since early 2025, participating in multiple rounds of technical presentations and capability assessments prior to the Government’s final approval.
Through this collaboration, aerpace will work closely with APEDB on key projects including establishment of an advanced drone manufacturing and testing facility, supporting an integrated ecosystem for defence UAVs, logistics drones, and AI-driven platforms, contributing to research, training, component development, and system-level innovation, and enabling growth across aerpace’s defence and mobility verticals, including aerShield and aerWing.
The Drone City initiative also aligns with the Government of India’s broader vision of strengthening future-ready manufacturing, as articulated by Union Minister for Commerce and Industry Piyush Goyal, who has consistently championed India’s capability to lead in next-generation technology and advanced production systems.
“India’s First Drone City represents a landmark opportunity for the nation to build sovereign capability in aerospace, defence, and unmanned systems. We are honoured to be part of this initiative and remain committed to contributing meaningfully to India’s innovation landscape," said Ravi Soni, Executive Director, aerpace Industries Limited.
The MoU marks the beginning of a phased development plan, with aerpace and the Andhra Pradesh Government working together on regulatory coordination, infrastructure planning, and execution of the proposed facilities. Detailed updates will be shared as the project progresses.
