Air India, Tata Advanced Systems to invest Rs 2,300 crore in Karnataka

Tata Group-owned carrier Air India and Tata Advanced Systems that makes airplane parts have proposed to invest Rs 2,300 crore in Karnataka, the state government said on Monday. The investment will also generate employment opportunities for 1,650 people.

As per the MoU (memorandum of understanding), the carrier aims to establish a maintenance, repair and overhaul (MRO) facility at Bengaluru airport, while Tata Advanced Systems will set up manufacturing and research & development facilities in the state. Tata Advanced Systems makes cargo and bulk cargo doors for European planemaker Airbus' A320neo family of aircraft.

The Air India project entails investment of Rs 1,300 crore, while Tata Advanced Systems aims to launch three projects worth Rs 1,030 crore, including a freighter aircraft conversion facility worth Rs 420 crore, a gun manufacturing facility worth Rs 310 crore, and an aerospace & defence research and development worth Rs 300 crore, according to a report in Moneycontrol. While the Air India project is expected to generate direct employment opportunities for 1,200 people, the Tata Advanced Systems projects are expected to create job opportunities for 450 people.

The MoU quoted a study by the National Council of Applied Economic Research (NCAER) that expects passenger traffic to increase by 8 million passengers per annum due to the hub creation. This would generate employment too for 25,000-26,00 people, as well as increase tourism. 

Tata Advanced Systems was awarded a contract by Airbus to manufacture cargo and bulk cargo doors of the A320neo aircraft family, which were to be produced in the company’s Hyderabad facility using cutting-edge robotics and automation technology. 

(With Reuters inputs)

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