AP Launches Defence Corridor; BDL’s ₹1,200 Cr Unit to Boost Jobs

Andhra Pradesh is all set to launch its defence industrial corridor, with the establishment of a propellant production and manufacturing unit with the integration of a weapons system near Donakonda in Prakasam district, marking the first defence investment under Andhra Pradesh’s new Defence Policy.

The AP government tied with Bharat Dynamics Limited (BDL) is said to invest Rs 1,200 crore in the project, which is expected to provide 600 direct jobs and another 1,000 indirect employment opportunities. The facility will be a part of the Jaggaiahpet-Donakonda hub of the defence industrial corridor, the third such corridor in India after Uttar Pradesh and Tamil Nadu, and is hailed as the first big high-value investment planned across 23,000 acres of land spanning across the state.

According to sources, senior officials from BDL recently visited the proposed 1,400-acre site by the state investment board intended for the advanced facility. The company has submitted a detailed project report (DPR) to the state government and requested the necessary land allocation. In response to the proposal, the government has initially consented to allot 1,346.67 acres, with 317 acres sourced from current state land and the remainder to be acquired.

The plan features the building of an 8-kilometre, two-lane access road connecting the site to the Amaravati–Anantapur Expressway. It also includes provisions for a daily supply of 25,000 kilowatts of electricity and 2,000 kilolitres of water. The main facility will take up 1,200 acres, while an additional 200 acres are set aside for a township that will provide homes for 600 families thus ensuring smooth operations.

BDL plans to work closely with DRDO to produce missiles and other weapon systems for the Indian Armed Forces. The new facility will house cutting-edge engineering systems that seamlessly connect different departments, helping sensors, communications, missiles, and guns work together efficiently. It will also manufacture powerful rocket motors capable of carrying payloads of up to 1,000 tons, supporting both defense operations and space research.

With the approval of this project from the Center, the construction is expected to begin by April 2026 in a single phase, which upon completion will become BDL’s fifth manufacturing unit. Owing to its strategic location, the government is contemplating for the establishment of an Indian Airforce base in Donnakonda along with various supporting systems like logistics centers, training facilities and R&D bases.

This ambitious project is said to follow the footsteps of an ongoing defence manufacturing initiative by Kalyani Strategic Systems Limited investing up to Rs 2,400 crore in a world-class equipment manufacturing unit at Madakasira in Sri Sathya Sai district of AP. Officials are positive of Andhra Pradesh gaining international recognition in defence manufacturing and research owing to these two units, thus strengthening national security and securing local employment opportunities.