Pipavav ties up with Airbus

After it's tie up with Mazgaon Docks has been put on hold by the Ministry of Defence, Pipavav Defence and Offshore Engineering Company (formerly Pipavav Shipyard) on Wednesday announced its foray into the aviation sector by signing a pact with Airbus to set up an aircraft maintenance facility in the country through ajoint venture. As per the MoU, European Aeronautic, Defence and Space Co, (EADS), the makers of Airbus, will pick up 26% equity in the project and have the option to increase it to 49%, Pipavav said in a regulatory filing. The filing added that 51% stake in the proposed JV will be held by Pipavav, while its promoters SKIL Infra will also hold some stake. The JV to develop maintenance, repair and overhaul (MRO) facilities and associated infrastructure is likely to cost $100 million in the first phase and will be used for civilian and military applications, the filing stated. “This will be a one of its kind joint venture being set up in India with equity participation from EADS, France (Airbus) which is the global leader in defence and aerospace.”