New Delhi: India is set to become one of the few countries globally to launch an on-road vertical take-off and landing air ambulance service. A deal worth over $1 billion has been signed, under which the IIT-Madras-based electric aircraft startup, ePlane Company, will supply 788 eVTOL (Electric Vertical Take-Off and Landing) air ambulances.

These 788 eVTOLs will be provided to ICATT, India’s leading air ambulance company, which will deploy them across every district in India. The agreement, which is non-binding, is particularly significant as the country faces growing traffic congestion in its cities and towns. The eVTOLs will initially focus on providing essential services like medical emergency transportation. Being electric, they will also have a minimal environmental impact. India’s eVTOL market has seen significant interest recently, with the government considering easing airspace regulations to facilitate the use of eVTOLs and drones for transportation and delivery services.

Prominent Indian eVTOL startups include Archer Aviation, Sarla Aviation, and ePlane Company, with app-based taxi services like Uber also testing air taxi prototypes to help commuters avoid traffic.

For essential services such as air ambulances, ePlane Company plans to start operations in the last quarter of 2026. The company will have an annual production capacity of 100 units, according to its founder, Satya Chakravarthy, who spoke with Reuters.

Chakravarthy, a professor at IIT-Madras where ePlane Company was founded, has secured the billion-dollar deal but is now seeking an additional $100 million to manufacture and test prototypes of other eVTOL models and to obtain necessary certifications. The company has raised $20 million so far.

ePlane Company is developing three prototypes of air ambulances tailored to different geographic and population needs. These air ambulances will accommodate a pilot, a paramedic, a patient, and a stretcher, along with critical medical equipment. The air ambulances will have a top speed of 200 km/h and a range of 110 to 200 kilometers per battery charge.

“We can ramp up our production and put things into the market to good use much more effectively with an air ambulance than directly going to an air taxi,” said Chakravarthy, adding, “It’s possible for us to ramp up air ambulances a lot more organically, compared to having to go to a rush with an air taxi.”