Tata Group companies Air India and TASL to invest ₹2,300 crore in manufacturing, R&D hub in Karnataka

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Air India and Tata Advanced Systems (TASL), are set to invest ₹2,300 crore in Karnataka, towards establishing a Maintenance Repair and Overhaul (MRO) facility in Bengaluru, envisioning the city as the aviation hub of South India, PTI reported on February 19. The investment is aimed at fostering economic growth and employment opportunities in the state, it added.

These investments are anticipated to create approximately 1,600 direct jobs and over 25,000 indirect jobs in the state, as per a Reuters report. A Memorandum of Understanding (MoU) was signed during the ceremony attended by Chief Minister Siddaramaiah and Large and Medium Industries Minister MB Patil.

These projects, the first of their kind in India, will be strategically located at Bengaluru International Airport and Kolara, contributing to the enhancement of Karnataka's A&D ecosystem, as per an ANI report. Minister Patil said there is a need for government support in terms of clearances, approvals, and interventions for such initiatives, pledging assistance in overcoming any project-related challenges.

Air India, which will establish the MRO facility in Bengaluru with an investment of around ₹1,300 crore, is anticipated to create direct employment for 1,200 individuals. According to a study by the National Council of Applied Economic Research (NCAER), the hub's creation is poised to elevate the passenger handling capacity by eight million passengers per annum (MPPA).

This, in turn, is expected to generate employment opportunities for 25,000 to 26,000 people, encompassing both direct and indirect roles in areas such as business, support staff, and tourism in Karnataka, the PTI report added. Meanwhile, TASL is looking at three distinct projects totalling an