Tata Group has unveiled ambitious plans to enhance Karnataka’s aviation sector, with Air India and Tata Advanced Systems pledging a combined investment of Rs 2,300 crore. This significant financial infusion is poised to create 1,650 job opportunities within the state, marking a notable advancement in the region’s economic development.

Under the terms of the newly signed MoU, Air India is set to establish a cutting-edge Maintenance, Repair, and Overhaul (MRO) facility at Bengaluru Airport. Concurrently, Tata Advanced Systems will spearhead the development of manufacturing and research & development facilities dedicated to the aviation industry within Karnataka. Notably, Tata Advanced Systems is recognized for its expertise in producing crucial components, such as cargo and bulk cargo doors for Airbus’ A320neo aircraft family.

The investment breakdown reveals that Air India‘s project will channel Rs 1,300 crore into the state’s economy, whereas Tata Advanced Systems is set to embark on three distinct projects totaling Rs 1,030 crore. These include a Rs 420 crore freighter aircraft conversion facility, a Rs 310 crore gun-manufacturing unit, and a Rs 300 crore initiative focused on aerospace and defence research and development. The projects are not only significant for their economic value but also for their potential to generate substantial employment, with Air India’s venture expected to offer 1,200 jobs and Tata Advanced Systems’ initiatives providing an additional 450 positions.

Further emphasizing the strategic importance of these investments, a study by the National Council of Applied Economic Research (NCAER) anticipates a surge in passenger traffic by 8 million passengers per annum, attributable to the hub’s establishment. This increase is projected to foster employment for an additional 25,000 to 26,000 individuals and boost tourism in the region.

Tata Advanced Systems’ collaboration with Airbus, involving the manufacture of cargo and bulk cargo doors for the A320neo aircraft family at its Hyderabad facility, exemplifies the company’s commitment to leveraging advanced technologies, including robotics and automation, to enhance its production capabilities.