With the bulk of maintenance, repair and overhaul (MRO) expenses of Indian carriers spent outside the country, the government is now planning to reverse the trend and develop India as an MRO hub through tax benefits and easing security norms.
The government is mulling over exemptions like customs duty, zero-rate service tax, simplification of clearance and easy access for foreign pilots and technicians to help the MRO sector grow.
According to the government, the MRO business of Indian carriers stood at Rs 5,000 crore, 90 per cent of which is currently being spent outside India in Sri Lanka, Singapore, Malaysia and the UAE among others. “Given our technology base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines,” according to the recently released Revised Draft Civil Aviation Policy.
02/11/15 Deccan Herald
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The government is mulling over exemptions like customs duty, zero-rate service tax, simplification of clearance and easy access for foreign pilots and technicians to help the MRO sector grow.
According to the government, the MRO business of Indian carriers stood at Rs 5,000 crore, 90 per cent of which is currently being spent outside India in Sri Lanka, Singapore, Malaysia and the UAE among others. “Given our technology base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines,” according to the recently released Revised Draft Civil Aviation Policy.
02/11/15 Deccan Herald
