Finance Minister Nirmala Sitharaman has said that the government is taking steps to make the country a hub for aircraft maintenance, repair and overhaul (MRO).
On Saturday, Sitharaman announced the fourth installment of the economic package, saying, “If we can make India a bigger center, it will not only benefit the civil aircraft, but also the defense aircraft sector.” This will reduce maintenance costs for all airlines. In the end, passengers will get its benefit. Travel costs will come down for them. ‘
He announced to auction 6 more airports on the basis of public-private partnership (PPP) model. The Finance Minister said that steps are being taken for better use of Indian airspace.
The Finance Minister said that a competitive Indian MRO industry will help local airlines to reduce expenses on such operations. So far this work is mostly done abroad. He said that India is among the fastest growing aviation markets in the world and it has the potential for high growth.
Sitharaman said that India has the capability, workforce and skills for MROs. He said that the aircraft component repair and airframe maintenance sector is worth Rs 800 crore at present. It will reach Rs 2,000 crore in the next three years.
According to the Economic Review 2019-20, the annual import of MRO services by Indian aviation companies is Rs 9,700 crore.