Tata Group's Air India and TASL commit to investing Rs 2,300 crore in Karnataka's aerospace and defence sector

Air India and Tata Advanced Systems Ltd (TASL), two companies under the Tata Group, have pledged to spend Rs 2,300 crore in the aerospace and military industry in Karnataka. 

The investment is expected to improve the state's standing in the aerospace sector and create a significant number of job opportunities. It was launched in front of State Industries & Infrastructure Development Minister MB Patil and Karnataka Chief Minister Siddaramaiah.

1,650 direct employment is anticipated to be created as a result of the collaboration between the Karnataka government and the Tata Group firms.

Air India intends to create a Maintenance, Repair, and Overhaul (MRO) facility at Bengaluru airport under the terms of the memorandum of understanding (MoU), with an emphasis on both narrow-body and wide-body aircraft. 

With this effort, approximately 1,200 highly trained jobs would be created, and India's MRO ecosystem will be strengthened. Tata Advanced Systems, on the other hand, plans to start three projects that will bring 450 new jobs: a facility for converting cargo planes; a facility for producing guns; and an R&D unit for aerospace and military.

More than 200 small and medium-sized businesses (SMEs) in Karnataka are anticipated to gain from the investment, which would bolster the regional supply chain. 

Additionally, Tata Advanced Systems intends to obtain more than 50% of the parts for its gun manufacturing plant from inside the state, which may help about 350 SMEs and 3,000 individuals.