Orvakal Drone City Advances: 8 Plots Allotted, 55 Acres Assigned as Stakeholder Meeting Charts Industry Path

Major Milestone: Plot Allocation and Manufacturing Assignments

Of the 12 plots identified in the first phase, eight have already been allotted to drone companies, with land measuring around 55 acres allotted to various companies for setting up manufacturing units. This represents the first concrete step in attracting manufacturers to the broader 600-acre development.

The stakeholders' meeting focused on key requirements including investment, manufacturing infrastructure, testing and certification, airspace clearances and skill development to support the growth of the drone industry.

National-Level Stakeholder Meeting and Government Commitment

A national-level Drone City Stakeholders Meeting was held at Orvakal near Kurnool, Andhra Pradesh, on 18 August 2026. The event brought together CEOs and representatives from the drone and aerospace industry and was chaired by Union Minister for Civil Aviation Shri K. Rammohan Naidu.

Union Minister for Civil Aviation Kinjarapu Rammohan Naidu outlined the Government of India's commitment to advancing the next phase of reforms for India's rapidly growing drone sector, including enabling BVLOS certification by the end of 2026 and introducing a new financial incentive scheme to strengthen domestic manufacturing of drones and critical components.

Project Scope and Development Model

The Orvakal Drone City in Kurnool district would emerge as one of the country's most-ambitious hubs for drone manufacturing, research, testing, training and technological development, with investments of up to ₹5,000 crore expected in the coming years.

The Central and Andhra Pradesh governments are working together to transform Orvakal Drone City in Kurnool district into a national hub for drone manufacturing, research, testing, training and technological development. The facility is being developed in phases through coordination between the Andhra Pradesh government and the Union Ministry of Civil Aviation.

Employment and Economic Impact

The proposed drone ecosystem is expected to generate around 5,000 direct and 25,000 indirect employment opportunities once the city becomes fully operational. The project has already secured investments of approximately ₹130 crore and could attract up to ₹5,000 crore as the domestic drone industry expands.

Regulatory and Infrastructure Focus

Speaking at the AP Drone Industry CEO's Round Table, jointly hosted by the Drone Federation India (DFI) and the Government of Andhra Pradesh at Orvakal Drone City, the Minister said the regulatory framework must evolve alongside the industry to enable innovation while maintaining the highest standards of safety and security.

Orvakal Drone City is a 600-acre purpose-built ecosystem designed to consolidate drone manufacturing, research and development, testing, logistics and infrastructure, with the initiative aiming to provide an integrated environment for companies to develop, test and scale next-generation drone technologies.