Latrobe Valley-based aircraft manufacturer GippsAero is refusing to comment on a decision to produce its GA8 Airvan in India.

On Monday, several Indian media outlets reported that GippsAero’s Indian parent company, Mahindra Aerospace, planned to build the Airvan in its Indian factory in two years.

GippsAero is based at the Latrobe Regional Airport and has received millions of dollars of Government grants to upgrade its facilities, to enable it to produce the Airvan locally.

It leases the site from the Latrobe City Council.

A statement from the council says plans to build the eight-seater aircraft in India, only refer to additional manufacturing capacity.

However, when contacted by the ABC, GippsAero refused to comment on whether the GA8 would continue to be built in the Latrobe Valley.