Tata Group’s Air India and Tata Advanced Systems Ltd (TASL) have pledged to invest Rs 2,300 crore in Karnataka’s aerospace and defence sector.

Announced in the presence of Karnataka Chief Minister Siddaramaiah and State Industries & Infrastructure Development Minister MB Patil, this investment is poised to elevate the state’s aerospace industry and unlock significant employment opportunities.

The collaboration between Tata Group companies and the Karnataka government is projected to create 1,650 direct jobs.

Furthermore, a study by the National Council of Applied Economic Research (NCAER) anticipates the generation of approximately 25,000 to 26,000 indirect jobs owing to increased passenger traffic and tourism. This surge in employment is hailed as a significant catalyst for the state’s economic growth.

As part of the memorandum of understanding (MoU), Air India plans to establish a Maintenance, Repair, and Overhaul (MRO) facility at Bengaluru airport, catering to both wide-body and narrow-body aircraft.

This initiative aims to bolster India’s MRO ecosystem and generate over 1,200 highly skilled positions. Meanwhile, Tata Advanced Systems is set to launch three projects, comprising a freighter aircraft conversion facility, a gun manufacturing facility, and an aerospace & defence research and development unit, creating an additional 450 jobs.

The investment is poised to benefit over 200 small and medium enterprises (SMEs) in Karnataka, reinforcing the local supply chain.

Tata Advanced Systems also intends to procure over 50% of the components for its gun manufacturing facility from within the state, potentially benefiting approximately 3,000 individuals across approximately 350 SMEs.