Air India, Tata Advanced Systems to invest $280 million in Karnataka

Tata group firms Air India and Tata Advanced Systems Ltd have pledged investments to the tune of ₹2,300 crore (about $280 million) in Karnataka, the state government said this week.

The state government expects the investment to create about 1,600 jobs in the state.

“This infusion of ₹2,300 crore will bolster research and development and create 1,650 jobs, while our airframe maintenance, repair, and overhaul (MRO) and aviation hub at Bengaluru airport will set new benchmarks for connectivity and economic progress,” chief minister Siddaramaiah posted on X.

Tata Advanced Systems manufactures cargo and bulk cargo doors for Airbus’ A320neo aircraft, while Air India is the second-biggest domestic airline in India as of January end.

The investment in Karnataka is projected to indirectly stimulate over 25,000 employment opportunities, state minister for commerce and industries M.B. Patil posted on X.

The MRO facility will not only add to India’s self-reliance but also bring in international business, Deccan Herald reported, citing unidentified officials.

Tata Advanced Systems plans to set aside $120 million for the projects in Karnataka, including $50 million to build a passenger to freighter aircraft conversion facility and an aerospace and defense research and development center at $36 million.