Tata Group’s Air India and Tata Advanced Systems Ltd (TASL) have announced a commitment to invest Rs 2,300 crore in Karnataka’s aerospace and defense sector.
This investment, unveiled in the presence of Karnataka Chief Minister Siddaramaiah and State Industries & Infrastructure Development Minister MB Patil, aims to elevate the state’s standing in the aerospace industry and create significant employment opportunities.
Creation of 1,650 jobs in the state
The collaboration between the Tata Group companies and the Karnataka government is expected to generate 1,650 direct jobs.
Moreover, a study by the National Council of Applied Economic Research (NCAER) foresees the creation of approximately 25,000 to 26,000 indirect jobs due to increased passenger traffic and tourism. This surge in employment is seen as a significant boost to the state’s economic growth.
Establishing a facility at Bengaluru airport
As part of the memorandum of understanding (MoU), Air India intends to establish a Maintenance, Repair, and Overhaul (MRO) facility at Bengaluru airport, focusing on both wide-body and narrow-body aircraft.
This initiative aims to bolster India’s MRO ecosystem and provide over 1,200 highly skilled jobs. Tata Advanced Systems, meanwhile, will undertake three projects, including a freighter aircraft conversion facility, a gun manufacturing facility, and an aerospace & defense research and development unit, creating an additional 450 jobs.
Strengthening the aerospace ecosystem
The investment is poised to benefit over 200 small and medium enterprises (SMEs) in Karnataka, fortifying the local supply chain.
Tata Advanced Systems also plans to procure over 50% of the parts for its gun manufacturing facility from within the state, potentially benefiting around 3,000 individuals across approximately 350 SMEs.
