90% MRO business go abroad;Govt keen to develop India as Asian MRO Hub

New Delhi: The Maintenance, Repair and Overhaul (MRO) business for the Civil Aviation Sector has very good potential and the government is keen to develop India as MRO hub of Asia. The MRO business of Indian carriers is around Rs 5000 crore, 90% of which is currently spent outside India – in Sri Lanka, Singapore, Malaysia, UAE etc. The Minister of State for Civil Aviation Shri Jayant Sinha informed Rajya Sabha on February 7, 2017 in a reply to the question raised by Rajya Sabha member Shri Parimal Nathwani.

According to the statement of the minister, given technology and skill base of India, the government is keen to develop the country as an MRO hub in Asia, attracting business from foreign airlines.
Mr. Nathwani wanted to know whether the Maintenance, Repair and Overhaul (MRO) for the Civil Aviation Sector of the Country has not been able to keep pace with the ever growing Sector and lack of such facilities is reportedly forcing airline operators to take their planes to other Countries causing business and foreign exchange losses and the steps taken by Government to enhance MRO facilities for airlines and increase the business potentials, employment generation and foreign exchange earning of the Country.

The minister’s statement said that adequate facilities for Maintenance and Repair of planes are available in the country. However, for Overhaul, only limited facility is available, said that statement. Therefore, some Indian Carrier send their aircrafts to foreign countries to carry out the overhaul maintenance services in Directorate General of Civil Aviation (DGCA) approved maintenance organizations located abroad. However, carriers avail maintenance services from DGCA approved maintenance organizations depending upon their commercial considerations, duration for accomplishment of maintenance and lease requirements, said the statement.

There are 109 MROs approved in India of which 07 are capable of carrying out overhaul of planes, which includes AIR India Engineering Services Ltd at New Delhi, MASGMR Aero Technic Ltd at Hyderabad, Jet Airways (India) Ltd at Mumbai, Airworks India Engg. at Mumbai, Hindustan Aeronautics Ltd at Kanpur, Indamer Aviation Ltd at Mumbai and Airworks India Engg. Pvt. Ltd. at Hosur in Tamil Nadu, said that minister. The statement also said that out of 109 MROs in India one is in Ahmedabad.

According to the statement of the minister, the government announced many reliefs for development of the sector in the country during budget 2016-17. The tools and tool-kits used by the MRO have been exempted from Customs duty. The exemption shall be given on the basis of list of the tools and tool kits certified by the Directorate General of Civil Aviation approved Quality Managers of aircraft maintenance organisations, said the statement.

According to the statement, foreign aircraft brought to India for MRO work will be allowed to stay for the entire period of maintenance or up to 6 months, whichever is lesser, provided it undertakes no commercial flights during the stay period. For stay beyond 6 months, DGCA’s permission will be required, he stated.

DeshGujarat