
Andhra Pradesh signs MoU with Airbound for a drone delivery network targeting 10,000 daily flights. Costs claim 20x below ground logistics. A template for Indian states?
Andhra Pradesh is putting its weight behind a Bengaluru drone startup to build what the state says could become one of the largest commercial drone delivery networks in the world.
Airbound signed a memorandum of understanding with Andhra Pradesh Drone Corporation (APDC) on Thursday for the Amaravati Capital Region Drone Delivery Network (ACR DDN). The network would connect Amaravati, Vijayawada, and Guntur, with operations starting in Guntur. The two sides said they are working toward enabling 10,000 daily drone flights across the state within a year.
That scale would put Andhra Pradesh among the largest such networks globally, dwarfing most current commercial drone operations. The company claims delivery costs as low as 10 paisa per kilometer, roughly 20 times cheaper than conventional ground logistics.
Airbound's aircraft is the key. The company's blended-wing-body tailsitter, built from lightweight carbon fiber, weighs just 1.5 kilograms and offers a payload ratio of 1.5 to 1. The industry standard is four to one. That ratio means the drone can carry nearly its own weight in cargo, which is unusual for a small unmanned aircraft.
"With this MoU, Airbound is not just launching a new mode of delivery, they are laying the foundations of a new logistics architecture for Andhra Pradesh," said Geetanjali Sharma, managing director and chairman of APDC.
Civil Aviation Minister Kinjarapu Ram Mohan Naidu framed the partnership as a showcase for Indian aerospace. "Airbound's trajectory shows what India is capable of in next-generation aviation," he said. "By partnering with a home-grown company to build one of the world's largest drone delivery networks, Andhra Pradesh is demonstrating that cutting-edge technology can be designed, built, and scaled in India, delivering real connectivity, jobs, and growth."
Airbound founder and CEO Naman Pushp offered a sharper view of the ambition. "India is at an inflection point in logistics and aerial mobility, and Andhra Pradesh has both the ambition and the enabling environment to lead this transition at scale," Pushp said. "Today, logistics is built around the movement of people and vehicles. Our goal is to build a network where drones move single packages point to point with the efficiency of a 20-ton truck."
He added that if the model works in Amaravati, Vijayawada, and Guntur, it becomes a template for other Indian cities and states. "It becomes shared infrastructure that anyone can plug into, not something reserved for a handful of large players."
The network targets faster movement of healthcare supplies, commercial goods, and critical deliveries. Airbound has already run healthcare drone deliveries with Narayana Health in Bengaluru, completing more than 1,000 flights. Total flight experience across all operations exceeds 10,000 flights.
The phased rollout will include pilot operations, route mapping, ecosystem partnerships, and regulatory coordination. The MoU is non-binding at this stage, and execution depends on regulatory approvals, route clearance from the Directorate General of Civil Aviation, and the actual build-out of the drone corridor infrastructure.
Airbound is a private company. No financial terms of the partnership were disclosed.
For investors tracking the drone logistics space, the Andhra Pradesh partnership is the most ambitious public-sector commitment to drone delivery in India to date. The question is whether the 10,000-flight target is realistic within a year given current airspace constraints and certification timelines.
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