Union Minister Chairs National Drone City Stakeholders Meeting at Orvakal; BVLOS Certification and New Incentives Announced

What Happened: The Meeting

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 K. Rammohan Naidu.

AKSI Aerospace Group, a Hyderabad-based aerospace and drone technology company, showcased its indigenous drone platforms and engaged with government officials and industry stakeholders on the development of the emerging drone ecosystem in the State. AKSI Aerospace showcased the Varuna Agriculture Drone for precision farming, the Skyshipper Cargo Drone with 52 kg MTOW and 30 kg payload capacity, the Skywing 90 Surveillance Drone with up to 90 minutes endurance, and the newly launched AKSI Delta Wing Drone.

What the Minister Announced

Union Minister for Civil Aviation Kinjarapu Rammohan Naidu outlined the Government of India's commitment to enabling BVLOS (Beyond Visual Line of Sight) certification by the end of 2026 and introducing a new financial incentive scheme to strengthen domestic manufacturing of drones and critical components.

Speaking at the meeting, the Minister said the regulatory framework must evolve alongside the industry to enable innovation while maintaining the highest standards of safety and security. The Ministry highlighted work on a new financial incentive scheme aimed at strengthening domestic drone and critical component manufacturing and supporting the industry in scaling its capabilities.

The Orvakal Drone City Project

Orvakal Drone City is being developed as an integrated ecosystem for drone manufacturing, research, testing, training and technology development, with around 600 acres earmarked for the project. 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.

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.

Investment and Jobs Outlook

The project has already secured investments of approximately ₹130 crore and could attract up to ₹5,000 crore as the domestic drone industry expands. The project is expected to generate around 5,000 direct and 25,000 indirect jobs.

Approximately 55 acres have been assigned to firms for establishing manufacturing units, and eight plots have been allotted to drone companies.

AKSI Aerospace Group MD Pankaj Akula commented that "The vision behind Orvakal Drone City is closely aligned with what India needs to build a globally competitive and self-reliant drone ecosystem. Andhra Pradesh has the opportunity to go beyond creating an industrial cluster and build a complete ecosystem where manufacturing, research, testing, training and deployment come together on a common platform."

Broader Context

Orvakal in Andhra Pradesh's Kurnool district is rapidly emerging as a major industrial growth centre, with the Orvakal Industrial Node being developed across nearly 2,621 acres under the National Industrial Corridor Development Programme. With an investment potential of ₹12,000 crore and a project cost of ₹2,786 crore, Orvakal aims to generate 45,071 jobs.

The Drone City is one of three major Greenfield Industrial Smart City nodes being developed by NICDC in Andhra Pradesh—Krishnapatnam, Orvakal and Kopparthy—located across different industrial corridors.