As part of the economic restructuring regarding Aviation Sector, Finance Minister Nirmala Sitharaman announced that the reforms pertain to three broad categories including rationalisation of airspace, auctioning of new airports and making India an MRO (Maintenance, Repair and Overhaul) hub for airplanes.
The announcement was done as part of the several economic reforms being announced by the government in these difficult times. Finance Minister Nirmala Sitharaman announced the fourth tranche of the economic package today. This was about structural reforms along 8 major sectors spanning Coal, Minerals, Defence Production, Airspace Management, MRO, Power Distribution Companies in UTs, Space and Atomic Energy.
The Govt wants to make India a hub for Airplane MRO (Maintenance, Repair and Overhaul) and has laid a detailed plan in today's announcement. For the same, tax regime for MRO Ecosystem has been rationalized.
Govt aims to increase the aircraft component repairs and airframe maintenance from Rs 800 crore to Rs 2000 crore in next three years. It is also been announced that the aircraft maintenance will come down, increasing revenue for air carriers.
Major engine manufacturers like Rolls-Royce, Pratt & Whitney, GE are expected to set up their engine repair facilities in India in the coming years as well.
To further reduce MRO, defense and civil aviation sectors will work in coherence to increase economies of scale.