Moving forward on its proposed maintenance, repair and overhaul facility in Nagpur, Air India (AI) has signed a land lease agreement with Maharashtra Airport Development Company (MADC) for transfer of land to the national carrier.
The agreement, signed yesterday, will facilitate transfer of 50 acres of land to Air India for the project.
Air India has formed a joint venture with US aircraft manufacturer Boeing to set up the proposed project at the upcoming Special Economic Zone near Nagpur at an investment of Rs 500 crore over the next three years.
"This (MRO) project is an important move in realising the potential of MRO business in India and meeting future requirements," Air India Board member K M Unni said.
The Boeing Company on its part would facilitate in constructing and equipping the facility.
The state-of-the-art technology facility would be used for major maintenance of the Boeing 777 and 787 fleet of the National Aviation Company of India (NACIL), the holding company of Air India.
The Air India-Boeing joint venture project also plans to render maintenance, repair and overhaul services to third parties.
The lease agreement was signed by Unni and MADC Vice-Chairman and Managing Director R C Sinha, a press release said.
