The Maharashtra Airport Development Company has decided to allocate 75 acres of land in Nagpur to aircraft major Boeing to set up its prestigious $100 million maintenance repair and overhaul (MRO) facility.

"The MADC, headed by state Chief Minister Vilasrao Deshmukh, in a crucial meeting in Mumbai has finally agreed to part with 75 acres of land for Boeing," MADC managing director and vice chairman R C Sinha said on Friday.

He said a decision on how much land should be given for the facility was delayed, as the aircraft manufacturer had initially demanded 80 acres adjacent to the 'Dr Babasahbe Ambedkar International Airport' in Nagpur which the MADC was reluctant to part with.

Boeing had, in April last year, announced the decision to set up the MRO in the city. It was part of an agreement with civil aviation ministry while giving final touches to procurement of a fleet of Boeing aircraft for national carrier Air India.

The meeting specially convened by MADC in Mumbai on Thursday was attended by senior officials of the corporation and Boeing, including its vice president Dinesh Keskar.

When contacted, Keskar, who is based in Boeing's headquarters in Seattle, said: "We will soon perform the ground breaking function and hold a press conference."

Sinha said the price of the 75 acres of land has not been finalised but has been left to the state government to decide.

MADC sources said Boeing has shortlisted Air India as partner for setting up the MRO and was in search of a third partner "for smooth running of the project."