Boeing to invest $185 million in Maharashtra

MRO hub, aviation academy for Nagpur

BY A CORRESPONDENT
April 17, 2006

It's official - Boeing's Indian MRO hub will be set up in Nagpur. This was announced by Boeing's sales vice-president Dinesh Keskar in Nagpurt on Friday night, at a function to announce the launch of Indian's Nagpur-Bangkok flights.

Boeing Presdient James McNerney was in Delhi the previous day, and had held discussions with aviation minister Praful Patel in this regard.

Boeing will spend $100 million to set up the MRO and $75 million for a pilot training academy. A total of $185 million investment in planned.

The Boeing investment is part of a counter-trade caveat in Indian mega-deal with foreign companies, which insists that that a certain proportion of the deal has to be ploughed back into the country through investments, joint production etc.

Though several states had pitched for the Boeing investment, Boeing officials had visited only Nagpur in Maharashtra state. Nagpur is pitched as India's biggest upcoming airport and cargo hub. Praful Patel, who hails from Maharashtra had pushed for the investment in Nagpur.

India is also planning to set up a freighter hub in Nagpur. As part of this, several Boeing 737 planes owned by Indian Airlines will be converted to freighters.