Airbus and Tata Group's aerospace arm Tata Advanced Systems (TASL) will establish India's first privately-led Final Assembly Line (FAL) for the H125 helicopters in Karnataka's Kolar.
The project will be in line with the government's 'Make in India' initiative which aims to build self-reliance in the aerospace industry, a report from the Economics Times said. 

The newly built factory will manufacture Airbus' best-selling H125 helicopter, and will be one among the only four such facilities in the world, the report added citing sources. Three other units are currently present in France, US and Brazil.

Karnataka won the project, beating states like Andhra Pradesh, Gujarat and Uttar Pradesh, because of its already existing aerospace manufacturing ecosystem. Hindustan Aeronautics (HAL), a key defence player in the space, is based out of the southern state.

The plant will reportedly be set up in the Vemgal Industrial area, nearly two hours away from Bengaluru. Notably, Karnataka government's recently promised subsidies on land and other capital incentives, as well as availability of skilled workforce and expansion potential were few of the reasons why the state was selected for the project, the report said.