Boeing may set up $100 mn repair unit in Nagpur

The US aircraft manufacturer Boeing has zeroed in on Nagpur as the site for its maintenance, repair and overhaul (MRO) base in Asia. An announcement is likely to be made by the month-end.

In mid-April, James McNerney Jr, chairman, Boeing, is expected to visit India to choose a site for the project, in which, the company may invest $100 million.

Speaking to Business Standard, sources close to the development said, "Recently, a senior official from the Maharashtra government flew to Boeing's Seattle headquarters and made a presentation to the company's top brass on the advantages of Nagpur as a location for the MRO. Our presentation has impressed them."

Besides Nagpur, Kochi, Hyderabad, Chennai, Bangalore and even Gwalior had thrown their hats in the ring for the project.

But with the civil aviation minister Praful Patel as well as the Boeing vice-president Dinesh Keskar favouring Nagpur, it is most likely that the decision maybe in favour of the orange city.

Sources added that despite being approached by other states, the company has been negotiating with the Maharashtra government alone and the only site that they have visited is Nagpur.

Elaborating on Nagpur's advantages over other sites, a source said, "First of all, we are offering them a 20-hectare site in the SEZ, which means that they can import or export anything without paying duties."

"Secondly, the SEZ will have its own water and sanitation system and its own 100 mw captive power plant along with 25 mw backup system, so there will be virtually no blackout at the site. Besides, an international school, a health city and recreational options such as a golf course, are also coming up at the SEZ which will cater to the needs of Boeing's employees," sources pointed out.

"More importantly, the SEZ is an extension of the Nagpur international airport, which is operational through out the year, so that the MRO too can operate 24x7," sources added.

Sources say that the Boeing MRO may create around 3,000 highly paid jobs in the immediate vicinity and generate another 30,000 jobs indirectly.