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

Tata Group subsidiaries Air India and TASL are to invest 2,300 crore in Karnataka for manufacturing facilities, aiming to create 1,600 direct jobs and 25,000 indirect jobs.

Livemint
First Published19 Feb 2024
File image of Tata Sons Chairman Natarajan Chandrasekaran
File image of Tata Sons Chairman Natarajan Chandrasekaran (Photo by Sajjad Hussain / AFP)

Tata Group subsidiaries, 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's Ambitious Plans

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.

TASL's Multi-Faceted Initiatives

Meanwhile, TASL is looking at three distinct projects totalling an investment of 1,030 crore. These projects include a Passenger-to-Freighter Aircraft Conversion facility worth 420 crore; a gun manufacturing facility of 310 crore; and Aerospace and Defence Research and Development in Karnataka of 300 crore, the PTI report said. The implementation of these projects is projected to create direct employment for 450.

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 view of the local economy, TASL is aiming to source over 50 percent of the parts for its gun manufacturing facility from Karnataka. This is anticipated to engage 2,000-3,000 people through the establishment of 300-350 small and medium enterprises (SMEs).

States Draw Investments

The recent development from Air India and TASL follows Tata Technologies' recent commitment to invest 1,5000 crore in Telangana, Reuters noted. Further, Tata Sons chairman Natarajan Chandrasekaran last month said the Group would soon reveal plans for a semiconductor fabrication plant in Gujarat.

In January, Indian states witnessed investment commitments from various companies and conglomerates, including Maruti Suzuki and the Adani Group, during business events such as the Vibrant Gujarat Global Summit and the World Economic Forum (WEF).

(With inputs from PTI, Reuters and ANI)

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