Bhopal, Madhya Pradesh is planning India's first aircraft repair and maintenance facility and cargo hub - an aviation city - to be set up at a cost of Rs.200 billion ($5 billion).

"At present the nearest such facility is in Singapore," state minister and government spokesperson Kailash Vijayvargiya told reporters Tuesday.

The facility will be located at Dabra in Gwalior district, the minister said, adding: "A cabinet meeting chaired by Chief Minister Shivraj Singh decided that the state government will provide 7,000 acres of land for the aviation city."

"The major portion of the land for the project belongs to Dabra Sugar Mill and the rest will be provided by the government. It will also have a cargo hub," Vijayvargiya said.

"It will be the country's first aviation city and will have facilities for repair and maintenance of aircraft.

"At present there is no such facility in India and airlines have to go to Singapore for such work as it is the nearest city where such facilities are available," he said.

"A joint venture with the Singapore-based company that runs the Singapore facility is being planned," he said without naming the other Indian companies will participate in the proposed joint venture.

Vijayvargiya also said that the city is expected to come up in the next five years at an investment of Rs.200 billion ($5 billion) and would initially provide jobs to 25,000 people which will go up to 100,000 later.

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