Pipavav Defense and Offshore Ltd., India’s largest shipbuilder by market value, has signed an agreement with Airbus SAS and SKIL Infrastructure to develop aircraft maintenance, repair and overhaul facilities for both civilian and military applications in India.

“The first phase [of] MRO facilities and associated infrastructure are likely to cost $100 million,” a Pipavav Defense official says.

Initially, Airbus parent company EADS will have a 26% stake in the project and may raise it to 49%. Pipavav Defense will hold 51%, the official says.