Air India, Tata Advanced Systems to Invest Rs 2,300 Crore in Karnataka
In a significant development, Air India and Tata Advanced Systems have entered into a Memorandum of Understanding (MoU) with the Karnataka state government, committing a joint investment of Rs 2,300 crore in various projects within the state. The collaboration is expected to generate approximately 1,650 job opportunities.
Air India is set to establish a Maintenance, Repair & Overhaul (MRO) facility in Karnataka, earmarking an investment of Rs 1,300 crore. With the aim to make Bengaluru its MRO hub in south India, this initiative is anticipated to create around 1,200 jobs. A study by the National Council of Applied Economic Research (NCAER) suggests that the MRO facility will lead to a surge of eight million annual passengers, fostering direct and indirect employment for approximately 26,000 individuals. This growth is expected to be driven by increased business activity, support staff requirements, and a boost in tourism.
Tata Advanced Systems, a prominent aerospace manufacturing, military engineering, and defense technology company, has outlined three projects with a combined investment of Rs 1,030 crore. These projects include a Passenger to Freighter aircraft conversion facility (Rs 420 crore), a gun manufacturing facility (Rs 310 crore), and aerospace & defense research and development (Rs 300 crore). The implementation of these projects is projected to create approximately 450 jobs.
Tata Advanced Systems has also emphasized its commitment to sourcing over 50 percent of the 13,000 parts for the gun manufacturing facility from suppliers within Karnataka. This strategic move is expected to generate employment for around 3,000 people through collaboration with approximately 350 small and medium-sized enterprises (SMEs). The company is known for manufacturing cargo and bulk cargo doors for Airbus' A320neo family of aircraft.
The signing of the MoU took place in the presence of Chief Minister Siddaramaiah, Industries Minister MB Patil, Chief Secretary Rajneesh Goyal, Additional Chief Secretary (Finance) LK Atheeq, Principal Secretary (Industries) Gunjan Krishna, and key executives from Air India and Tata Advanced Systems.
Air India is set to establish a Maintenance, Repair & Overhaul (MRO) facility in Karnataka, earmarking an investment of Rs 1,300 crore. With the aim to make Bengaluru its MRO hub in south India, this initiative is anticipated to create around 1,200 jobs. A study by the National Council of Applied Economic Research (NCAER) suggests that the MRO facility will lead to a surge of eight million annual passengers, fostering direct and indirect employment for approximately 26,000 individuals. This growth is expected to be driven by increased business activity, support staff requirements, and a boost in tourism.
Tata Advanced Systems, a prominent aerospace manufacturing, military engineering, and defense technology company, has outlined three projects with a combined investment of Rs 1,030 crore. These projects include a Passenger to Freighter aircraft conversion facility (Rs 420 crore), a gun manufacturing facility (Rs 310 crore), and aerospace & defense research and development (Rs 300 crore). The implementation of these projects is projected to create approximately 450 jobs.
Tata Advanced Systems has also emphasized its commitment to sourcing over 50 percent of the 13,000 parts for the gun manufacturing facility from suppliers within Karnataka. This strategic move is expected to generate employment for around 3,000 people through collaboration with approximately 350 small and medium-sized enterprises (SMEs). The company is known for manufacturing cargo and bulk cargo doors for Airbus' A320neo family of aircraft.
The signing of the MoU took place in the presence of Chief Minister Siddaramaiah, Industries Minister MB Patil, Chief Secretary Rajneesh Goyal, Additional Chief Secretary (Finance) LK Atheeq, Principal Secretary (Industries) Gunjan Krishna, and key executives from Air India and Tata Advanced Systems.
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