Rao, an alumnus of the National Defence Academy, took over from Air Commodore Mrigendra Singh, an official statement said.
A ceremonial taking over parade was held to mark the occasion.
Rao was commissioned in the IAF as a fighter pilot in 1983. He has flown over 3,500 hours on various fighter and trainer aircraft including Mirage 2000, Mig 21, ISKARA, Kiran and HPT-32.
He is also a qualified flying instructor. As Flight Commander, Rao was awarded Vayu Sena medal during 'Operation Parakaram'.
His earlier tenures include command of a fighter squadron, directing staff at Defence Services Staff College and as Joint Director at Air Headquarters in New Delhi.
Rao has also served as Air Attache at the Indian Embassy in Rome, Italy.
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Before his present appointment, he was the Chief Instructor (flying) at the Air Force Academy in Hyderabad.
Chabua is the easternmost IAF fighter base of the country.