Hyderabad has secured a major defence manufacturing investment as industrial conglomerate JSW Group begins construction of a $90 million unmanned aerial systems facility at the Maheshwaram electronics cluster. The plant, expected to start production by late 2026, will manufacture advanced V-BAT drones for domestic and global markets — strengthening India’s strategic capabilities and boosting local high-skilled employment.
The facility will be operated by JSW Defence under a long-term collaboration with an international defence technology firm for licensed production and technology transfer of the Group 3 V-BAT platform. The fixed-wing aircraft, equipped for vertical take-off and landing, is widely used for intelligence, surveillance and reconnaissance missions by multiple armed forces. Industry analysts say its localisation marks a significant shift in India’s defence supply chain, traditionally dependent on imports. According to senior officials involved in the project, the new plant will not only assemble drones but also build an indigenous component ecosystem. “A secure and reliable domestic supply chain for critical defence equipment reduces logistical vulnerabilities while creating opportunities for Indian manufacturers,” an executive said. The 16-acre unit is expected to produce up to 300 V-BAT systems annually and employ more than 300 engineers, technicians and operational specialists.
Defence economists note that the investment arrives at a time when state governments are increasingly competing to build aerospace and defence corridors in pursuit of higher-value and future-proof employment. Hyderabad has positioned itself as a preferred destination, supported by skills availability, industrial land banks and supportive policy frameworks. A government representative described the plant as “a core step towards establishing Telangana as a nationwide centre for defence innovation, especially in unmanned systems”. The project forms part of JSW Group’s broader defence strategy, with total investments of over ₹1,200 crore across multiple ventures in advanced mobility and aerospace technologies. Company representatives highlighted the importance of technology absorption and long-term innovation in building globally competitive defence manufacturing capacity.
Beyond its strategic value, the drone hub is also seen as an anchor for wider regional development. Industrial planners say such investments can stimulate training facilities, research partnerships and supplier networks across the city’s southern belt. As defence production shifts towards automation, precision manufacturing and green industrial standards, they add that Hyderabad must continue investing in inclusive skilling and climate-resilient infrastructure to ensure manufacturing growth translates into secure and equitable urban development. With the facility scheduled to begin operations in 2026, attention will now turn to procurement decisions by the armed forces and the global export potential of Indian-made unmanned systems. The success of the project could reinforce Hyderabad’s emerging role in shaping the country’s next phase of aerospace and defence manufacturing.
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