Ahmedabad: Gautam Adani’s Adani Defence and Aerospace, along with Brazilian aerospace giant Embraer, has selected the Dholera Special Investment Region (SIR) to set up India’s first ever private sector Final Assembly Line (FAL) for commercial civilian jets. The companies, who have signed a Memorandum of Understanding (MoU) in that regard, have chosen Dholera over another location in Bhogapuram, Andhra Pradesh as they aim to commission the facility by 2028.
“Regional aviation is the backbone of economic expansion. With initiatives like UDAN transforming air connectivity across Tier 2 and Tier 3 cities, the need for an indigenous regional aviation ecosystem has become critical,” Jeet Adani, Director, Adani Defence & Aerospace, said in a press release.
“This signing represents a critical milestone for our partnership, as we continue to work together on all aspects of the proposed aerospace ecosystem, including securing orders for a Final Assembly Line in India.” Francisco Gomes Neto, President and CEO, Embraer added.
Through the facility, Adani aims to produce the Embraer E175 jet, a small 88 seater jet that would be ideal to connect Tier 2 and Tier 3 cities in the country. Under the UDAN scheme, India’s regional aviation expansion is expected to create massive demand for these aircraft- small enough for low traffic routes and efficient enough for commercial operations.
Currently, Embraer has two operational FALs, one in Harbin, China and another in Evora, Portugal. The one in Dholera would be a third, while allowing India to access high-end technology, not just an assembly facility.
With the Dholera International Airport nearing initial operations, the factory is located at a special location that meets demand. This can also result in an industrial cluster where aircraft component makers could set up shop in the region, boosting the economy and creating jobs as a result.
Reportedly, the FAL will be set up only if Adani manages to secure orders for at least 200 aircraft within two years, and this may not be that challenging as IndiGo, AirIndia Express and SpiceJet have reportedly expressed interest in buying regional jets.
Along with this, the Adani Group also aims to set up Maintenance, Repair, and Overhaul (MRO) facilities in the region along with a pilot training hub, making Dholera an aviation hub in India.
