Air India, Tata Advanced Systems Sign MoU with Karnataka Government to Invest Rs 2,300 Crore, Enhance State’s Aerospace Ecosystem


Bengaluru: Air India and Tata Advanced Systems Ltd (TASL) signed a memorandum of understanding (MoU) with the Karnataka government for an investment of Rs 2,300 crore in the state’s aerospace and defence sector. While enhancing Karnataka’s aerospace ecosystem, the strategic move is expected to help create over 1,600 direct and 25,000 indirect jobs in the state.

The MoU was signed on February 19 in the presence of Karnataka Chief Minister Siddaramaiah and State Industries & Infrastructure Development Minister MB Patil.

Karnataka Chief Minister Siddaramaiah said, “We are delighted to witness this landmark collaboration between the Tata group companies — Air India and Tata Advanced Systems — and the Government of Karnataka. This investment propels Karnataka’s aerospace industry to new heights and augments employment opportunities, thereby contributing to the state’s economic growth.”

As per the MoU, Air India will establish maintenance, repair, and overhaul (MRO) facilities at Kempegowda International Airport in Bengaluru (operated by Bangalore International Airport Ltd). It will start with airframe maintenance through the development of wide-body and narrow-body hangars for all checks, including heavy structural checks. This initiative will help develop the broader MRO ecosystem in India and is expected to generate over 1,200 highly skilled employment opportunities in the state.

With plans to enhance its connectivity in Bengaluru, Air India’s initiative is a step towards its deeper presence in the city. It will scale its direct connectivity to various global destinations and aggregate traffic from Southern India.

Tata Advanced Systems Ltd ‘s investment will be directed towards various efforts, including implementing an aircraft modification, conversion, completion and MRO facility for defence purposes. An indigenous gun manufacturing, including a barrel manufacturing facility, will be set up along with an R&D unit in the aerospace and defence sector. These ventures are expected to generate over 450 highly skilled employment opportunities in the state, according to the MoU.

Nipun Aggarwal, chief commercial & transformation officer, Air India said, “This initiative by Air India will help us become more self-reliant for the maintenance of our fleet. It also reiterates our commitment to strengthen India’s aviation infrastructure by boosting the growth of the country’s MRO industry.”

Air india, TASL joint partnership is expected to be a step forward in propelling the aerospace industry’s progress, fostering innovation, and sparking economic growth throughout the region. The MoU is further expected to strengthen the supply chain for over 200 small and medium enterprises (SMEs) in the state.