Airbus in talks with AP govt for new facility.

French aerospace company Airbus is in talks with the Andhra Pradesh government for a proposed manufacturing facility in Anantapur district.

The State government has proposed the location for the project, which could involve a components manufacturing unit, since it is close to Bengaluru, on the Andhra Pradesh border.

An Airbus delegation held preliminary discussions with Chief Minister N Chandrababu Naidu recently. According to government sources, a team has also been in talks with the Anantapur collector for a 250-acre site for the project.

In a related development, Rahul Bhatia, Group MD of InterGlobe and Chairman of IndiGo Airlines, also met the CM, the Chief Minister's Office has stated.

Bhatia has reportedly hinted that the carrier may consider setting up an MRO (maintenance, repair and overhaul) facility in partnership with Airbus. This assumes importance in the backdrop of IngiGo, one of the fastest growing airliners in the country, placing an order with Airbus in October for 250 A320 aircraft.

Andhra Pradesh, which is keen to develop new airports and attract investments post bifurcation, has slashed VAT on aviation turbine fuel. The move is aimed at positioning the State as a hub for airlines.

HBL