Air India, a carrier owned by the Tata Group, and Tata Advanced Systems will invest 2,300 Crore ($277.2 million) in the Indian state of Karnataka, as announced by the state government on Monday. Air India will conduct maintenance, repairs, and overhaul of planes at the Bengaluru airport, while Tata Advanced Systems will establish manufacturing and research & development facilities in the state.
Investments in Karnataka Set to Generate Over 26,600 Jobs
According to official statements, the investments will generate around 1,600 jobs directly and more than 25,000 jobs indirectly in the state. Tata Advanced Systems manufactures cargo and bulk cargo doors for European planemaker Airbus’ A320neo family of aircraft, while Air India commands the second-biggest market share among domestic Indian airlines as of Jan. 31.
The investment follows Tata Technologies’ recent commitment to invest 150 billion rupees in Telangana. The conglomerate aims to expand its presence in various states, including Prime Minister Narendra Modi’s home state of Gujarat. Tata Sons chairman Natarajan Chandrasekaran revealed plans to build a semiconductor fabrication plant last month.
Indian states continue to attract investment pledges from companies and conglomerates, with notable commitments from Maruti Suzuki and the Adani Group during business events such as the Vibrant Gujarat Global Summit and the World Economic Forum in January.
Strategic Aerospace Projects to Boost Karnataka’s Economy
As per an ANI report, these projects, the first of their kind in India, will be strategically located at Bengaluru International Airport and Kolara, contributing to enhancing Karnataka’s A&D ecosystem. Minister Patil highlighted the necessity for government support in clearances, approvals, and interventions for such initiatives, pledging assistance in overcoming project-related challenges.
Air India Ambitious Plans
With an investment of around ₹1,300 crore, Air India will establish the MRO facility in Bengaluru, expected 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, according to the PTI report.
Multi-Faceted Initiatives By Tata Advanced Systems Drive Economic Growth
According to the PTI report, TASL is embarking on three distinct projects with a total investment of ₹1,030 crore. These projects comprise a Passenger-to-Freighter Aircraft Conversion facility worth ₹420 crore, a gun manufacturing facility valued at ₹310 crore, and Aerospace and Defence Research and Development in Karnataka amounting to ₹300 crore. Implementing these projects is projected to create direct employment for 450 individuals.
Tata Advanced Systems specializes in manufacturing cargo and bulk cargo doors for Airbus’ A320neo family of aircraft, while Air India currently holds the second-largest market share among domestic Indian airlines as of January 31. With a focus on the local economy, TASL aims to source over 50 percent of the parts for its gun manufacturing facility from Karnataka. This initiative is expected to engage 2,000-3,000 people by establishing 300-350 small and medium enterprises (SMEs).
Air India and TASL Lead the Way
Reuters noted that the recent Air India and TASL development follows Tata Technologies’ commitment to invest ₹15,000 crore in Telangana. Additionally, Tata Sons chairman Natarajan Chandrasekaran announced last month that the Group would soon unveil plans for a semiconductor fabrication plant in Gujarat.
In January, various companies and conglomerates, including Maruti Suzuki and the Adani Group, made investment commitments in Indian states during business events such as the Vibrant Gujarat Global Summit and the World Economic Forum (WEF).
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