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Air India and Tata Advanced Systems commits Rs 2,300 crore investment in Karnataka

ISN Team
New Update
Air India and Tata Advanced Systems karnataka

Tata Group's Air India and Tata Advanced Systems Ltd (TASL) have committed to investing Rs 2,300 crore in Karnataka's aerospace and defence sector.

The investment, which was announced in the presence of Karnataka Chief Minister Siddaramaiah and State Industries & Infrastructure Development Minister MB Patil, is poised to elevate the state's position in the aerospace industry and generate substantial employment opportunities.

Creation of 1,650 jobs in the state

The partnership between the Tata Group companies and the Karnataka government is expected to create 1,650 direct jobs.


Additionally, a study by the National Council of Applied Economic Research (NCAER) predicts 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 major boost to the state's economic development.

Establishing a facility at Bengaluru airport

Under the memorandum of understanding (MoU), Air India plans to establish a Maintenance, Repair, and Overhaul (MRO) facility at Bengaluru airport, focusing on both wide-body and narrow-body aircraft.

The initiative aims to enhance India's MRO ecosystem and provide over 1,200 highly skilled jobs. Tata Advanced Systems, on the other hand, will launch three projects, including a freighter aircraft conversion facility, a gun manufacturing facility, and an aerospace & defence research and development unit, creating an additional 450 jobs.

Strengthening the aerospace ecosystem

The investment is expected to benefit over 200 small and medium enterprises (SMEs) in Karnataka, strengthening the local supply chain.

Tata Advanced Systems also plans to source over 50% of the parts for its gun manufacturing facility from within the state, potentially benefiting around 3,000 people across approximately 350 SMEs.

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