Bharat Forge Limited, through its Aerospace division, has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish India's first private-sector Marine Gas Turbine (MGT) Repair, Overhaul, and indigenous Development complex at Visakhapatnam. The facility will be developed over ~80 acres within the Andhra Pradesh Defence Manufacturing Corridor. The MoU was signed on 19th May 2026 at the Aerospace and Defence Investment Conclave held at Puttaparthi — an event that also witnessed the foundation stone laying for India's AMCA fifth-generation stealth fighter programme.

The MoU was signed by Mr. Guru Biswal, CEO — Aerospace, Bharat Forge Limited, in the distinguished presence of Shri Rajnath Singh, Raksha Mantri, and Shri N. Chandrababu Naidu, Chief Minister, Andhra Pradesh.

Strategic Location and Significance

The Visakhapatnam facility will be co-located with the Naval Dockyard, INS Eksila, and Eastern Naval Command Headquarters. This positioning is designed to bring critical propulsion sustainment capability into India's private sector for the first time. Gas turbines serve as the propulsion backbone of the Indian Navy's frontline surface combatants, and the overseas supply chain for these engines has been severely disrupted in recent years, directly impacting fleet Repair and Overhaul cycles and operational readiness.

Two-Phase Development Plan

The project is structured across two distinct phases, each targeting specific capability milestones:

Beyond serving the Indian Navy, the facility is also envisioned as a regional Repair and Overhaul hub for friendly nation navies, and is expected to create approximately 750 direct and indirect employment opportunities.

Key Highlights at a Glance

• Location: Visakhapatnam, Andhra Pradesh Defence Manufacturing Corridor
• Area: ~80 acres
• Milestone: India's first private-sector Marine Gas Turbine facility
• Employment: ~750 direct and indirect jobs
• Strategic alignment: Aatmanirbhar Bharat, Sushakt Bharat — Surakshit Bharat, Viksit Bharat 2047

Leadership Voices

Speaking at the event, Shri Rajnath Singh, Raksha Mantri, Government of India, stated: "These projects will cater to all three Services and strengthen our efforts to make India self-reliant in defence manufacturing. Andhra Pradesh is set to emerge as a major hub of aerospace and defence production."

Shri N. Chandrababu Naidu, Chief Minister, Andhra Pradesh, remarked: "New Andhra Pradesh is being built on the pillars of innovation, infrastructure and industrialisation. As India moves towards Viksit Bharat, Andhra Pradesh will lead from the front."

Mr. Amit Kalyani, Vice Chairman & Joint Managing Director, Bharat Forge Limited, said: "India's warships have long carried the might of this nation on engines built abroad. That dependence ends here, at Visakhapatnam. Bharat Forge's Aerospace division is committing to bringing Marine Gas Turbine repair, overhaul, and indigenous development onto Indian soil — for the first time in the private sector, co-located with the very Naval Command that depends on these engines. This is not just an investment. This is our pledge to the Indian Navy, and to the nation."

About Bharat Forge

Bharat Forge Limited is a Pune-based Indian multinational company and a technology-driven global leader in providing high-performance, safety-critical components and solutions across sectors including automotive, power, oil and gas, construction and mining, rail, marine, defence, and aerospace. The company has a global manufacturing footprint with presence across five countries and offers full-service supply capability from concept to product design, engineering, manufacturing, testing, and validation. Its Aerospace Division is dedicated to the design, development, and manufacturing of critical aerospace components, with expertise in forging, precision machining, and sub-assembly integration.

Bharat Forge 's wholly owned defence subsidiary, Agneyastra Energetics Limited, has officially broken ground on its strategic defence manufacturing facility near Madakasira in Sri Sathya Sai District, Andhra Pradesh. The groundbreaking marks a significant milestone in India's push for indigenous energetics and ammunition manufacturing capabilities, with the facility being developed under the aegis of Kalyani Strategic Systems Limited (KSSL), the defence business arm of Bharat Forge.

Facility Overview and Investment

Spread across more than 1,000 acres, the integrated manufacturing campus is designed with advanced manufacturing technologies, high-safety testing infrastructure, and specialised logistics capabilities. The key parameters of the project are outlined below:

The facility is expected to generate approximately 800 direct jobs and around 2,500 indirect employment opportunities, contributing to regional economic growth and reinforcing Andhra Pradesh's emergence as a preferred hub for aerospace and defence manufacturing.

Strategic Significance and Aatmanirbhar Bharat Alignment

Agneyastra Energetics has been established to address India's continued reliance on imported energetics materials by delivering indigenously designed, manufactured, and globally compliant solutions. The initiative aligns with the Government of India's Aatmanirbhar Bharat vision, driving import substitution, local value creation, and technological self-reliance in strategically critical materials. The facility will focus on advanced ammunition, propellants, rockets, and pyrotechnic systems for defence, aerospace, and space applications.

Backed by the Kalyani Group's six decades of expertise in strategic defence manufacturing, metallurgy, and systems integration, Agneyastra Energetics is positioned to play a pivotal role in strengthening India's defence industrial ecosystem and contributing to the country's long-term vision of Viksit Bharat 2047.

Leadership Statement

Mr. Baba Kalyani, Chairman & Managing Director, Bharat Forge Limited, commented on the development: "India has a significant opportunity to emerge as a globally trusted source for advanced defence systems and critical materials. Agneyastra Energetics is a strategic step towards building a strong indigenous energetics ecosystem and globally competitive capabilities from India for both domestic and international markets."

About the Entities

Kalyani Strategic Systems Limited (KSSL) is a wholly owned subsidiary of Bharat Forge Limited, set up as a flagship company to drive defence business initiatives. The Group's legacy in design, engineering, metallurgy, and manufacturing expertise spanning over five decades has positioned it as one of the leading defence players in India.

Agneyastra Energetics Limited is a specialised ammunitions, propellants, and high energy materials manufacturing company and a wholly owned subsidiary of KSSL. The company is focused on building safe, high-performance, indigenous energetic capabilities aligned with India's long-term national security and self-reliance objectives.