Air India Ltd and Tata Advanced Systems Ltd has signed a Memorandum of Understanding with the Government of Karnataka for an investment of ₹2,300 crore in the state’s aerospace and defence sector.

As per the MoU, Air India will set up maintenance, repair and overhaul (MRO) facilities at Kempegowda International Airport in Bengaluru starting with Airframe Maintenance through the development of Wide-Body and Narrow-Body hangars for all checks, including heavy structural checks. This move will create more than 1,200 skilled jobs in the state.

The investment by TASL will be directed towards implementing an Aircraft Modification, Conversion, Completion and Maintenance, Repair and Overhaul (MRO) facility for defence purposes, setting up a gun manufacturing including barrel manufacturing facility and implementing R&D in the aerospace and defence sector. These ventures are expected to generate over 450 highly skilled employment opportunities in the state.

Chief Minister of Karnataka, Siddaramaiah said, “We are delighted to witness this landmark collaboration between the Tata group companies, Air India and Tata Advanced Systems Limited and the government of Karnataka. This investment not only propels Karnataka’s aerospace industry to new heights but also augments employment opportunities, thereby contributing to the state’s economic growth.”

Nipun Aggarwal, Chief Commercial & Transformation Officer, Air India said, “This initiative by Air India will not only help us become more self-reliant for the maintenance of our own fleet, but it also reiterates our commitment to strengthen India’s aviation infrastructure by boosting the growth of the country’s MRO industry”.