Rajeev Chandrasekhar promoted Jupiter Aviation, the Bangalore-based aviation venture development company, may pick up a stake in the proposed maintenance, repair and overhaul unit of European aircraft manufacturer Airbus Industrie.

State-run aerospace major Hindustan Aeronautics is also planning to team up with Airbus for the MRO, that will come up in Nashik (Maharashtra) and Bangalore (Karnataka).

The Rs 450 crore (Rs 4.5 billion) MRO project is a commitment by Airbus to the government for buying 43 aircraft for Indian Airlines, costing nearly Rs 10,000 crore (Rs 100 billion).

Sources said Airbus was in talks with eight international MRO operators to run the project in India. "The talks are at an advanced stage. The investment details and nature of the MRO unit will be finalised by the international MRO operator, who will pick up a stake in the project," a source said.

HAL officials confirmed that it was in talks with Airbus to co-operate for the project. "However, nothing has been finalised," an official said. "Airbus is an aircraft manufacturer with no MRO experience. It will have to rope in an international MRO operator to run the project. The possible partners, apart from Airbus and the global operator, will be HAL and Jupiter Aviation," a source said.

Jupiter Aviation is venture development subsidiary of Jupiter Capital, a venture development and investment firm.

Earlier, Jupiter Aviation and Airbus' parent company and aerospace group EADS had signed a strategic memorandum of understanding to collaborate in aviation ventures focusing on lifecycle support and training. Jupiter investments in these aviation ventures are expected to exceed $250 million (nearly Rs 1,100 crore).

Jupiter Aviation is the aviation venture development subsidiary of Jupiter Capital, a venture development and investment company. Jupiter Capital has invested in infrastructure, entertainment, technology and aviation.