Boeing in talks with state govt to set up manufacturing facility

US firm discusses land availability near B'luru, tax incentives

Boeing in talks with state govt  to set up manufacturing facility

In a development that gives a big boost to the aviation industry in Karnataka, aerospace major Boeing is holding talks with the state government on setting up a new aircraft manufacturing facility near Bengaluru.

Top officials of the state government held discussions with representatives of Boeing recently. Availability of land close to Bengaluru, tax incentives and special packages the government can offer to the company were discussed. But nothing has been finalised yet, nor has the company submitted a formal proposal to the government on its investment plans, sources in the government said.

“We are holding talks with Boeing. The company has plans to set up a new manufacturing facility near Bengaluru. Talks are still in preliminary stages,” Industries Minister R V Deshpande told DH. The minister, however, refused to divulge details on the company’s investment plans. Boeing recently launched its Engineering and Technology Centre in Bengaluru.

A few months ago, the US aircraft manufacturer had revealed that it was keen on investing in a new futuristic Indian factory under the ‘Make in India’ initiative. The company had said that it wants to create an entire aviation ecosystem for building its fighter aircraft, F/A-18 Super Hornet.

The F/A-18 Super Hornet is a twin-engine, supersonic, multirole fighter jet capable of landing and taking off from an aircraft carrier. But it is not clear whether the company is holding talks with the state government on establishing the factory near Bengaluru.

AP too is wooing

Sources in the Commerce and Industries department said that neighbouring Andhra Pradesh is also wooing Boeing to invest there. Andhra Pradesh has been aggressive in attracting investments. But, the Karnataka government is not lagging behind in this regard. Karnataka has an edge over other states as Bengaluru is an aviation hub, the sources added.

The sources said one of the reasons for the state government to hurriedly approve a proposal to relax land allotment rules for industrial purposes, is to compete with Andhra Pradesh in attracting Boeing. Projects coming in single unit complex bracket will get land on lease-cum-sale basis and absolute sale deed for the land will be issued to the investor after 15 years, as per the government’s decision.

Hitherto, land for industrial purposes was given only on 99 years lease. The Andhra Pradesh government has already simplified its land allotment rules. 

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