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

Air India and Tata Advanced Systems will be investing Rs 2,300 crore on various projects in Karnataka, with a potential to create 1,650 jobs.

The Tata Group companies' executives signed an MoU with the Karnataka state government in the presence of Chief Minister Siddaramaiah and Industries Minister MB Patil.

Air India proposed to build a maintenance, repair & 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.


As per a study by National Council of Applied Economic Research (NCAER), the center will result in a surge of eight million annual passengers, creating avenues for both direct and indirect employment for approximately 26,000 people.

This will be driven by increased business activity, the need for support staff, and a rise in tourism, it said.

Tata Advanced Systems, an aerospace manufacturing, military engineering and defense technology company, 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, gun manufacturing facility at an investment of Rs 310 crore and aerospace & defence research and development at an investment of Rs 300 crore.

These projects are likely to create around 450 jobs.

Tata Advanced Systems intends to source over 50 per cent of the 13,000 parts for its gun manufacturing facility from suppliers within Karnataka. This move is likely to generate employment for around 3,000 people across approximately 350 small and medium-sized enterprises (SMEs).

Tata Advanced Systems makes cargo and bulk cargo doors for European planemaker Airbus' A320neo family of aircraft.

Chief Secretary Rajneesh Goyal, Additional Chief Secretary (finance) LK Atheeq, Principal Secretary, Industries, Gunjan Krishna and Air India chief commercial officer Nipur Aggarwal, Tata Advanced Systems MD Sukaran Singh and Bangalore International Airport MD Hari Marar were present on the occasion.