The facility is a joint venture between the aerospace major and national carrier Air India, while MADC, a Government agency, has provided the land.
"We have finally signed the necessary papers to live up to the promise made in 2006 that Boeing will have its world's second MRO with Air India as partner in the city," Boeing Senior Vice-President Dinesh Keskar has said.
"Hopefully, the facility would be functional by end of 2010."
The 99-year lease agreement is for 50 acres of land located adjacent to the Dr Babasaheb Ambedkar International Airport under the prestigious Multi-modal International Passenger and Cargo Hub, Nagpur (MIHAN) project, he said.
By end of the current fiscal, Boeing will float tenders for constructing hangars which will accommodate two wide-bodied or four medium-bodied aircraft for maintenance and repairs, Keskar said.
Boeing had decided to set up the MRO in Nagpur since besides its central geographical location, there is ample availability of manpower and land. Most importantly, the weather conditions in the city are excellent for aircraft maintenance and repair works, the official said.
The region (Eastern Maharashtra) has a number of engineering colleges. Therefore, required technical hands in aviation, avionics and aerospace should be available by the time the MRO is ready, Keskar added.