Apollo Micro Systems Ltd (AMSL) has signed an initial agreement with the Telangana government to invest Rs 1,500 crore in defence manufacturing.

The memorandum of understanding (MoU) was signed in Hyderabad on Monday, the company said in a regulatory filing.

Under the agreement, AMSL—along with its subsidiaries and step-down subsidiaries—will set up a greenfield manufacturing project in Telangana.