National carrier Air India and GE Aviation will together invest $90 million to set up a maintenance, repair and overhaul (MRO) facility to cater to the latter's GEnx-1B engines.
"The investment in this facility at Mumbai will be around $90 million," GE Aviation's Country Director Nalin Jain said here on Thursday.
The US-based jet engines provider will invest $20 million while the balance will be pumped in by the Indian government-run airline. The foreign company's investment will be spread over 7-8 years.
"Our (GE Aviation) investment will be over a period of 7-8 years," Jain said.
The two companies on Thursday inked an agreement here, under which Air India will be licensed to perform MRO work on the GEnx-1B engine, which powers Boeing 787 aircraft.
The national carrier has ordered 27 GEnx-1B powered 787 planes.
"Air India envisages a state-of-the-art facility catering to GE 90 and GEnx engines, including a new engine testing facility. Our strong collaboration with GE will enhance the visibility of the facility across the globe and result in India becoming one of the major engine MRO players," Air India Chairman and Managing Director Arvind Jadhav said.
As part of the agreement, GE Aviation will provide technical support to Air India. Currently, GE had an order backlog of 250 engines from India, Jain said.
"We expect fresh orders (from India) next year," he added.
