India-based Pipavav Defence has signed a memorandum of understanding (MoU) with Airbus to set up an aircraft maintenance, repair and overhaul (MRO) facility in India.

In the joint venture Pipavav will hold a 51% stake and Airbus parent company European Aeronautic, Defence & Space Co NV (EADS) will hold a 26% stake, which could be increased to 49%.

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The first phase of the project will cost $100m and will provide MRO services to civilian and military aircraft.

The final decision on the location and other financial and investment aspects of the projects are expected to be finalised in two months.

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