Air India, TASL, and Karnataka government forge INR 2300 crore aerospace deal

As per the MoU, Air India will take the lead in setting up Maintenance, Repair, and Overhaul (MRO) facilities at Kempegowda International Airport Bengaluru, a notable advancement in India’s aviation infrastructure.

Air India Ltd. and Tata Advanced Systems Limited (TASL), in collaboration with the Government of Karnataka, have committed a combined investment of INR 2300 crore into the state’s aerospace and defence sector. This significant Memorandum of Understanding (MoU) was officially signed in the presence of notable dignitaries, marking the beginning of a promising era of partnership and economic development.

As per the MoU, Air India will take the lead in setting up Maintenance, Repair, and Overhaul (MRO) facilities at Kempegowda International Airport Bengaluru, a notable advancement in India’s aviation infrastructure. These facilities will prioritize Airframe Maintenance for both Wide-Body and Narrow-Body aircraft, incorporating thorough checks such as heavy structural inspections. This initiative is expected to create more than 1200 highly skilled job opportunities in Karnataka, reinforcing the state’s status as a pivotal centre for aerospace innovation.

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Concurrently, TASL’s investment will drive multiple initiatives, including the establishment of an Aircraft Modification, Conversion, Completion, and MRO facility tailored for defence applications. Moreover, TASL intends to set up indigenous gun manufacturing and barrel manufacturing facilities, alongside launching R&D projects in the aerospace and defence domains. These endeavours are poised to generate more than 450 highly skilled employment opportunities, nurturing a dynamic ecosystem of innovation and progress.

The collaborative endeavour has received accolades from both governmental and industry figures. Honourable Chief Minister Shri Siddaramaiah has voiced his excitement for the partnership, highlighting its pivotal role in elevating Karnataka’s aerospace industry and expanding job prospects, consequently bolstering the state’s economic prosperity.

Minister for Large and Medium Industries and Infrastructure Development, Shri. MB Patil has lauded the alliance as a momentous stride for Karnataka’s aerospace and defence sector, underscoring the state’s dedication to nurturing innovation, fostering economic growth, and facilitating job creation.

Industry leaders echoed the sentiments of government officials, underlining the strategic significance of the partnership. Mr. Campbell Wilson, CEO & MD of Air India, emphasized the agreement’s alignment with Air India’s vision of becoming a premier airline and delivering superior travel experiences to passengers. Meanwhile, Mr Sukaran Singh, CEO and MD of TASL, underscored the partnership’s contribution to enhancing India’s industrial growth and skill development capabilities.

Mr Hari Marar, MD and CEO of Bangalore International Airport Limited (BIAL) praised the collaboration as transformative, consolidating Bengaluru’s position as a prominent aviation hub and aligning with the government’s vision to cultivate numerous aviation hubs throughout the nation.

The partnership between Air India, TASL, and the Government of Karnataka represents a significant leap forward in advancing the aerospace industry, fostering innovation, and driving economic growth across the region. With Kempegowda International Airport emerging as a key hub for South and Central India, supported by substantial investments in infrastructure, the vision is to position Karnataka as a powerhouse in the aerospace and defence sectors.

In alignment with the objectives of the Civil Aviation Ministry, this collaboration has the potential to elevate India into a vibrant aviation hub, creating up to 25,000 indirect job opportunities, stimulating economic activity, and strengthening the supply chain for over 200 SMEs in the state.