Tata Group subsidiaries, Air India and Tata Advanced Systems (TASL), are poised to inject ₹2,300 crore into Karnataka’s economy, focusing on establishing a Maintenance Repair and Overhaul (MRO) facility in Bengaluru. This move is aimed at positioning Bengaluru as the aviation hub of South India. The investment, announced on February 19, is expected to generate significant employment opportunities, with approximately 1,600 direct jobs and 25,000 indirect jobs projected to be created. The Memorandum of Understanding (MoU) was signed during a ceremony attended by Chief Minister Siddaramaiah and Large and Medium Industries Minister MB Patil, emphasizing the state’s support for such initiatives. The strategic locations chosen for these projects, at Bengaluru International Airport and Kolara, are expected to contribute to the development of Karnataka’s Aerospace and Defence (A&D) ecosystem.
Air India’s portion of the investment, amounting to around ₹1,300 crore, will be allocated towards establishing the MRO facility, which is expected to directly employ 1,200 individuals. This initiative is anticipated to increase the passenger handling capacity by eight million passengers per annum, according to a study by the National Council of Applied Economic Research (NCAER), leading to further job creation in various sectors such as business, support staff, and tourism.
On the other hand, TASL’s investments, totaling ₹1,030 crore, will encompass three distinct projects: a Passenger-to-Freighter Aircraft Conversion facility, a gun manufacturing facility, and Aerospace and Defence Research and Development. These projects are expected to create direct employment for 450 individuals. TASL aims to source over 50 percent of the parts for its gun manufacturing facility from Karnataka, intending to engage 2,000-3,000 people through the establishment of 300-350 small and medium enterprises (SMEs).
The investment by Air India and TASL in Karnataka follows Tata Technologies’ commitment to invest ₹1,500 crore in Telangana, showcasing Tata Group’s increasing focus on expanding its presence across various Indian states. Furthermore, Tata Sons chairman Natarajan Chandrasekaran recently hinted at plans for a semiconductor fabrication plant in Gujarat. This surge in investment commitments by companies and conglomerates in Indian states was observed during business events such as the Vibrant Gujarat Global Summit and the World Economic Forum in January.