American aerospace multinational corporation Boeing has decided to halt its manufacturing plans and convert its entire Bengaluru facility for research and development after taking a monetary hit from COVID-19 crash, Economic Times reported.
The US aerospace giant sought clearance from the state for the conversion of the plant into an R&D facility. Chaired by Karnataka Chief Minister BS Yediyurappa, the State High-Level Clearance Committee (SHLCC) meeting on Monday approved Boeing’s request.
Being one of the fastest-growing aviation markets in the world, the firm had planned to bet on a healthy demand for its planes in India. However, it decided to drop its manufacturing plans ahead of the sedate demand for plans due to the COVID-19 pandemic.
The firm had said its Bengaluru project was going to be its second-largest facility after one in the US. The committee cleared five projects worth investments of about 26,659 crores with jobs potential of 13,341.
The Karnataka government in 2018 had approved Boeing’s plan to set up an engineering and product development facility on a 36-acre plot in the aerospace park near the international airport with an investment of about 1,150 crores.
