Air India and Tata Advanced Systems forge strategic partnership to drive economic growth and job creation in Karnataka
Air India and Tata Advanced Systems have announced plans to allocate Rs 2,300 crore to various projects in Karnataka, signalling a significant investment in the region’s economic development. The partnership between these industry giants is poised to create over 1,650 employment opportunities across different sectors.
The announcement was made as executives from Tata Group companies signed a Memorandum of Understanding (MoU) with the Karnataka state government, in the presence of Chief Minister Siddaramaiah and Industries Minister MB Patil.
As per recent reports, Air India’s major proposal involves the establishment of a maintenance, repair, and overhaul (MRO) facility in Bengaluru, with an investment of Rs 1,300 crore. This initiative aims to position Bengaluru as a prominent MRO hub in southern India and is expected to generate approximately 1,200 jobs within the aviation sector.
According to a study conducted by the National Council of Applied Economic Research (NCAER), the expansion of Air India’s operations is projected to increase annual passenger traffic by eight million, thereby creating employment opportunities for an estimated 26,000 individuals through both direct and indirect means.
Tata Advanced Systems, renowned for its expertise in aerospace manufacturing, military engineering, and defense technology, has outlined three major projects in Karnataka, totalling an investment of Rs 1,030 crore.
These projects include the establishment of a passenger to freighter aircraft conversion facility (Rs 420 crore investment), a gun manufacturing facility (Rs 310 crore investment), and aerospace & defense research and development (Rs 300 crore investment). Collectively, these initiatives are expected to create around 450 job opportunities in the region.
Moreover, Tata Advanced Systems aims to procure more than 50% of the necessary parts for its gun manufacturing facility from local suppliers within Karnataka, potentially benefiting around 3,000 people through employment opportunities in approximately 350 small and medium-sized enterprises (SMEs).
Tata Advanced Systems, known for producing cargo and bulk cargo doors for Airbus’ A320neo family of aircraft, is set to contribute significantly to Karnataka’s growing aerospace and defense sector.
Key dignitaries present at the signing ceremony included Chief Secretary Rajneesh Goyal, Additional Chief Secretary (Finance) LK Atheeq, Principal Secretary (Industries) Gunjan Krishna, Air India Chief Commercial Officer Nipur Aggarwal, Tata Advanced Systems Managing Director Sukaran Singh, and Bangalore International Airport Managing Director Hari Marar.
