Major Boost for Karnataka: Air India, Tata Advanced Systems to Invest Rs 2,300 Cr, Create Jobs
Major Boost for Karnataka: Air India, Tata Advanced Systems to Invest Rs 2,300 Cr, Create Jobs

Air India and Tata Advanced Systems have announced a significant investment of Rs 2,300 crore in Karnataka, aiming to boost employment opportunities in the region. The investment is expected to create around 1,650 jobs across various projects.

In a collaborative effort with the Karnataka state government, executives from Tata Group companies signed a Memorandum of Understanding (MoU) in the presence of Chief Minister Siddaramaiah and Industries Minister MB Patil.

Air India's proposal includes the establishment of a maintenance, repair, and overhaul (MRO) facility in Karnataka, with an investment of Rs 1,300 crore. This initiative aims to position Bengaluru as Air India's MRO hub in southern India, potentially adding 1,200 new jobs. According to a study by the National Council of Applied Economic Research (NCAER), this move is expected to attract an additional eight million annual passengers, leading to the creation of approximately 26,000 jobs, both directly and indirectly.

Tata Advanced Systems, known for its expertise in aerospace manufacturing and defense technology, plans to undertake three projects in Karnataka with a total investment of Rs 1,030 crore. These projects include establishing a passenger-to-freighter aircraft conversion facility (Rs 420 crore), a gun manufacturing facility (Rs 310 crore), and aerospace & defense research and development (Rs 300 crore). Together, these projects are anticipated to generate around 450 employment opportunities.

Moreover, Tata Advanced Systems aims to source more than 50% of the required parts for its gun manufacturing facility from local suppliers within Karnataka, potentially benefiting around 3,000 individuals across 350 small and medium-sized enterprises (SMEs).

Key officials including Chief Secretary Rajneesh Goyal, Additional Chief Secretary (Finance) LK Atheeq, Principal Secretary of Industries Gunjan Krishna, Air India's Chief Commercial Officer Nipur Aggarwal, Tata Advanced Systems' Managing Director Sukaran Singh, and Bangalore International Airport's Managing Director Hari Marar were present during the announcement.

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