Rajnath Singh and Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday laid the foundation stone for a Rs 16,000 crore combat aircraft infrastructure project here in Sri Sathya Sai district, with the Defence Minister saying it marks a historic chapter in India's defence history.

Also, a new era was starting in Andhra Pradesh, he said.

Singh and Naidu laid the foundation for the Advanced Medium Combat Aircraft (AMCA) programme infrastructure.

"A new era is starting today in Andhra Pradesh's history and a historic chapter is being written in India's defence history. Four major projects are starting in today's foundation stone laying ceremony. Beside them, eight drone companies are also starting a drone city in Kurnool," Singh said, addressing a public meeting.

Observing that the world is facing many challenges today, he said during these difficult times if we can stand with our own strength then we can defend ourselves powerfully.

However, the Defence Minister noted that India is still dependent on other countries for its national security, underscoring the importance of the projects starting from today.

Noting that the project in Puttaparthi was being developed by Aeronautical Development Agency (ADA), which is a part of DRDO, Singh said it is developing the fifth generation AMCA fighter jet.

With an investment of nearly Rs 16,000 crore, he said an aircraft integration and advanced flight-testing centre is being developed, noting that such facilities are owned only by a few countries.

Reflecting on other projects, Singh said Bharat Dynamics Limited will manufacture advanced autonomous underwater systems, torpedoes and countermeasure systems with an investment of Rs 480 crore.

He noted that several defence systems earlier imported from foreign countries would now be manufactured domestically, strengthening coastal security, naval capabilities and the blue economy.

He further said Agneyastra, a subsidiary of Bharat Forge, would manufacture advanced weapon systems for future warfare requirements with an investment of Rs 1,500 crore, while HFCL would establish electrical fuse manufacturing facilities with an investment of Rs 1,294 crore.

Singh said a consortium of eight drone companies was jointly establishing a Drone City in Kurnool under the Make in India initiative.

He described drone technology as a game changer in modern warfare while also highlighting its applications in agriculture and several civilian sectors.

Drawing comparisons with Surat's Diamond City status and Bengaluru's reputation as India's Silicon Valley, he said Kurnool would emerge as a global drone hub.

The union minister said weapons and technologies required for the Indian Army, Navy and Air Force would increasingly be manufactured from Andhra Pradesh.

He added that public and private sector companies, startups and institutions were jointly driving India's defence growth as a people's movement for national development, which was clearly visible in Andhra Pradesh.

Singh urged Naidu to develop the region into a military-industrial complex, citing its proximity to Bengaluru as a major advantage.

Highlighting India's transformation in defence manufacturing, Singh said the country was once among the world's largest arms importers, but had significantly strengthened indigenous production during the past decade.

He said domestic defence production had increased from around Rs 46,000 crore in 2014 to over Rs 1.54 lakh crore and would soon reach Rs 1.75 lakh crore in two months while defence exports had risen from around Rs 600 crore to nearly Rs 40,000 crore.

Meanwhile, CM Naidu said Andhra Pradesh will emerge as the defence shield of the country with the emergence of several related facilities.

Highlighting the significance of the AMCA project, Naidu stated that the initiative would showcase the capabilities of India's defence sector and strengthen indigenous combat aircraft manufacturing using homegrown technology.

The chief minister noted that the AMCA project being established on nearly 650 acres of land in Puttaparthi would pave the way for the development of a dedicated township and generate employment opportunities for around 7,500 people.

Naidu described "Operation Sindoor" as a proud example of India's growing technological strength and the success of the Atmanirbhar Bharat (self-sufficient India) initiative in the defence sector.

India launched its military offensive named "Operation Sindoor" on terror targets in Pakistan in May 2025 in response to the April 22 Pahalgam terror attack in which 26 tourists were killed.

Further, Naidu reiterated Prime Minister Narendra Modi's call to spend wisely amidst economic headwinds emanating from the US-Israel and Iran war.

He said the southern state will start mining gold from its Jonnagiri gold field in Kurnool district starting this year itself with an output of 600 kg gold in the first year and 1,500 kg in the second year.

Naidu highlighted that Andra Pradesh will become "home" to gold production in the future, which could ease pressure on the Indian economy.

Along with the AMCA project, Singh and Naidu also laid the foundation for a few more defence and drone city projects.

Following the foundation stone laying event, the leaders visited a display of missiles, hand grenades, advanced guns, fighter jet prototype and other defence products, a release said.