New Delhi/Mumbai: The aircraft maintenance, repair and overhaul (MRO) industry in India will not be in a position to compete with existing facilities in Singapore and Dubai, despite sops proposed by Finance Minister P. Chidambaram in Budget 2013-14.
Chidambaram has proposed extending the period for consumption/installation of parts and testing equipment for the MRO industry to one year from three months earlier. In addition, he has extended the exemption of basic customs duty for parts and testing equipment for MRO of aircraft.
Commenting on the Budget proposal relating to the sector, Amber Dubey, Partner and Head Aviation, KPMG, felt that Indian MROs still face high service tax and airport charges which continue to hurt their competitiveness with Dubai, Singapore, Kuala Lumpur and Colombo.
28/02/13 Business Line
