The Government of Karnataka and Tata Group companies Air India and Tata Advanced Systems Limited (TASL) signed a memorandum of understanding (MoU) for an investment of ₹2,300 crore, which is expected to create 1,650 direct jobs in the State.
The MoU was signed on February 19 by S. Selvakumar, Principal Secretary, Industries Department, and Nipun Agrawal, Chief Commercial Officer of Air India, and Sukaran Singh, CEO of TASL, in the presence of Chief Minister Siddaramaiah and Large and Medium Industries Minister M.B. Patil at Vidhana Soudha in Bengaluru. As per the MoU, Tata Group will be setting up various manufacturing and R&D facilities in Karnataka.
Mr. Patil said Air India plans to establish an aircraft Maintenance Repair and Overhaul (MRO) facility at Bengaluru airport with an investment of ₹1,300 crore. The unit is expected to employ 1,200 persons.
“This will be first-of-its-kind facility in India, and is expected to further open the doors for a full-scale MRO,” he said.
Air India would also create an aviation hub at Bengaluru airport to increase economic activity and air traffic through Bengaluru, the Minister added.
Tata Advanced Systems Limited plans to invest ₹1,000 crore across three projects: Aircraft Conversion (passenger to freight), gun manufacturing facility, and a Research and Development centre in the aerospace & defence sector. All these projects are the first of their kind in India. They will be located at Bengaluru airport and also at Kolar, according to the Minister.
All these will further boost and strengthen the A&D (aerospace and defence) ecosystem of Karnataka,” Mr. Patil said. He assured the Tata Group of all support in resolving any challenges around the execution of these projects.
MRO scenario in India
Currently, commercial aircraft used in India are flown to Singapore, or Toulouse in France, or to other Maintenance Repair and Overhaul (MRO) overseas for major repairs involving technical, electrical or manufacturing issues. But when aircraft are not in a condition to fly, specialists are flown in to attend to such grounded machines.
India is currently the third largest civil aviation market in the world. The country now has over 700 commercial aircraft, as per Directorate General of Civil Aviation (DGCA).
Airlines, on average, spend up to 15% of their revenue on maintenance and repair, the second-highest cost after the fuel bill. Most airlines have facilities, workshops or minor MRO capabilities in India to rectify small issues.
