The project is expected to take two years and the drone is expected to debut in 2022, said Guo Liang, chairman of Sichuan Tengoen Technology Co Ltd, a local company in charge of the project. He made the announcement at a recent UAV application and development forum.

Tengoen is an innovative high-tech enterprise set up by Chinese aviation experts and a state-owned investment company.

Chen Hong, executive vice-president of Tengoen, said it plans to build a whole UAV industrial chain in the city based on its strength in electronic information and software.

Chen added that during companies' development, especially those involved in the new economy, support from the local government is of great significance.

"It can help companies to hold a leading position in the market when competing with counterparts from other regions."

At the UAV forum, the Tianfu Intelligent Technology Research Institute, known as TIFO, announced it will settle in Jinniu District of Chengdu, with the participation of experts from 17 colleges and research institutions, including Harbin Engineering University and Nanjing University of Aeronautics and Astronautics.

Lu Zikai, operations leader of TIFO, said the team consists of top-level professionals in domestic intelligent industries, including artificial intelligence, robotics, electronic engineering and material mechanics.

TIFO aims to commercialize cutting-edge technologies, cultivate innovative startups and promote the application of intelligent technologies in industrial, commercial and military fields, Lu said.

It has signed an agreement with Jinniu District, which will offer supportive policies for all of its projects.

Industrial funds of up to 9 billion yuan will be invested into the development of intelligent technologies.