In a significant development, Air India, under Tata Group ownership, and Tata Advanced Systems are set to invest Rs 2300 crores ($277.2 million) in Karnataka, as announced by the state government on Monday. Under this collaboration, Air India will assume responsibility for aircraft maintenance, repairs, and overhauls at the Bengaluru airport, while Tata Advanced Systems will focus on establishing manufacturing and research & development facilities within the state.
Tata Advanced Systems specializes in manufacturing cargo and bulk cargo doors for Airbus' A320neo family of aircraft, extensively used across Europe. This joint investment initiative is expected to generate approximately 1,600 direct job opportunities and over 25,000 indirect jobs within Karnataka, boosting employment prospects in the region.
Air India, holding the second-largest market share among domestic Indian airlines as of January 31, aims to leverage this strategic partnership to further elevate its operational efficiency. This investment endeavor follows Tata Technologies' recent pledge to invest 150 billion rupees in Telangana, reflecting the conglomerate's broader strategy to expand its footprint across diverse Indian states.
Furthermore, Tata Group Chairman Natarajan Chandrasekaran hinted at the forthcoming announcement of plans to construct a semiconductor fabrication plant in Gujarat, the home state of Prime Minister Narendra Modi, underscoring Tata's continued commitment to investing in India's growth.
It's noteworthy that various Indian states have been witnessing pledges of investment from prominent companies and conglomerates, including Maruti Suzuki and the Adani Group, during significant business summits like the Vibrant Gujarat Global Summit and the World Economic Forum held in January.
