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Air India, Tata to invest Rs 2,300 cr in Karnataka's aerospace, defence sector

Monday, 19 Feb 2024
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Air India and Tata Advanced Systems will invest Rs 2,300 crore on various projects in Karnataka, creating 1,650 job opportunities. Tata Group's executives signed an memorandum of understanding (MoU) with the Karnataka government in the presence of Chief Minister Siddaramaiah and Industries Minister MB Patil.

Air India proposed to build a maintenance, repair and overhaul (MRO) facility in the state at an investment of Rs 1,300 crore. The company wants to make Bengaluru its MRO hub in south India and is likely to add 1,200 jobs. Further, the centre will result in an increase of eight million yearly travellers, providing opportunities for direct and indirect employment for around 26,000 people.  This will be driven by expanded business activity, the need for support staff, and a rise in tourism.

Tata Advanced Systems has planned three projects with an investment of Rs 1,030 crore. The three projects include a passenger to freighter aircraft conversion facility at an investment of Rs 420 crore, a gun manufacturing facility (Rs 310 crore) and aerospace and defence research & development (R&D) at Rs 300 crore. These projects are likely to create around 450 jobs.

Tata Advanced Systems, which is involved in an aerospace manufacturing, military engineering and defence technology company, intends to source over 50 percent of the 13,000 parts for its gun manufacturing facility from suppliers within the state. This move is expected to generate employment for around 3,000 people across approx. 350 small and medium-sized enterprises (SMEs).

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