Air India and Tata Advanced Systems Set to Invest Rs 2300 Cr in Karnataka

Air India and Tata Advanced Systems Ltd (TASL) have signed a memorandum of understanding (MoU) with the Karnataka government for a substantial investment of Rs 2,300 crore in the state’s aerospace and defence sector. 

This strategic move aims to bolster Karnataka’s aerospace ecosystem and create significant employment opportunities. Karnataka Chief Minister Siddaramaiah expressed his enthusiasm, stating, “We are delighted to witness this landmark collaboration between the Tata group companies — Air India and Tata Advanced Systems — and the Government of Karnataka.” 

The MoU outlines Air India’s plans to establish maintenance, repair, and overhaul (MRO) facilities at Kempegowda International Airport in Bengaluru, which is operated by Bangalore International Airport Ltd. Siddaramaiah emphasized the economic impact, stating, “This investment propels Karnataka’s aerospace industry to new heights and augments employment opportunities, thereby contributing to the state’s economic growth.” 

Additionally, the initiative is set to enhance Air India’s connectivity in Bengaluru and strengthen its presence in the city. Nipun Aggarwal, chief commercial & transformation officer at Air India, emphasized the significance, noting, “This initiative by Air India will help us become more self-reliant for the maintenance of our fleet.” 

TASL’s investment will focus on various efforts, including setting up aircraft modification and MRO facilities for defence purposes, as well as indigenous gun manufacturing and an R&D unit in the aerospace and defence sector. This joint partnership is expected to drive progress in the aerospace industry, foster innovation, and spur economic growth in the region. The MoU also aims to bolster the supply chain for over 200 small and medium enterprises (SMEs) in the state.