Air India, Tata Advanced Systems to invest Rs 2,300 crore in Karnataka | Company News – Business Standard

Tata Group-owned carrier Air India and plane parts-maker Tata Advanced Systems will invest Rs 2,300 crore in Karnataka for various projects, the state’s Chief Minister Siddaramaiah announced on Monday. 

Out of the total investment, Air India will invest Rs 1,300 crore to conduct maintenance, repairs, and overhaul of planes at the Bengaluru airport, while Tata Advanced Systems will set up manufacturing and research & development facilities in the state, he said.

“As a result, 1,200 people will get direct employment, and more than 25,000 jobs will be created indirectly,” he said in a post on social media platform X. 

Tata Advanced Systems makes cargo and bulk cargo doors for European planemaker Airbus’ A320neo family of aircraft.

TASL has earmarked Rs 1,030 crore for three projects. Out of this, Rs 420 crore will be allocated for setting up a unit to convert civil aircraft into freighter aircraft. Rs 310 crore, in addition to Rs 300 crore, with investment in gun manufacturing unit and Rs. Aerospace and defence research and development will be undertaken at the expense. 

“This will create 450 jobs,” the CM said.

Siddaramaiah also said, “This investment by the Tata Group will directly create 1,650 jobs.”

TASL plans to supply 50 per cent of the 13,000 spare parts required by the company through its gun manufacturing unit to be set up near Bangalore Airport and in Kolar. “Due to this, 2-3 thousand people will get jobs in more than 300 small and medium industries,” he added. 

The CM also said that 67 per cent of the planes and helicopters required by the defence department are manufactured in Karnataka. 

“In addition, the state contributes 65 per cent to the export turnover of the country’s aerospace and defence sector. 70 per cent of the companies in this sector in the country are based in Karnataka,” he said. 

First Published: Feb 19 2024 | 1:07 PM IST