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Boeing has shelved its plans to start a manufacturing plant in Bengaluru.

Boeing has dropped manufacturing plans in Bengaluru, citing muted demand due to Covid-19.

Boeing has dropped manufacturing plans in Bengaluru, citing muted demand due to Covid-19.Boeing, the aerospace company, had planned investments in Bengaluru, as India is one of the world's fastest-growing aviation markets.

The Karnataka state government had approved Boeing's plan in 2018 to set up an engineering and product development facility on a 36-acre plot in the aerospace park in Bangalore near the Kemegowda International Airport with an investment of about 1,150 crores. Boeing had said that the project would be its second-largest facility after the one in the U.S.

But the company took a consequential decision and shelved its plans to set up a production facility citing weak demand in the wake of the coronavirus pandemic. Instead, the entire 36-acre land will now be converted into a Research and Development (R&D) facility. The state's high-level clearance committee has approved the company's change of plan.

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