US aircraft manufacturer Boeing has signed a land lease agreement with the Maharashtra Airport Development Company (MADC) for setting up a $ 100 million (approx Rs.490 crore) maintenance, repair and overhaul (MRO) facility in Nagpur.

The 99 year lease agreement is for 50 acre located adjacent to the Dr. Babasaheb Ambedkar International Airport under the Multi-modal International Passenger and Cargo Hub, Nagpur (MIHAN) project.

The MRO is a JV between Boeing and Air India, while MADC, a government agency, has provided the land. The facility which will have the capacity to service 250 aircraft a year is expected to be functional by end-2010. By the end of current fiscal, Boeing will float tenders for constructing hangars which will accommodate two wide-bodied or four medium-bodied aircrafts for maintenance and repairs.

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