Mumbai: The aircraft MRO (maintenance, repair and overhaul) unit near Nagpur has got a major boost with the Union Budget exempting the tool and tool-kits required for the facility from custom and excise duties. Restrictions on usage of duty free parts within a year of its import have also been done away with.
Further, foreign aircraft brought to India for MRO work will be allowed to stay up to six months or as extended by the aviation regulator Directorate General of Civil Aviation. The aircraft can carry passengers at the beginning and end of the stay period in India.
MRO is a Rs 5,000 crore market in Asia, out of which about 90% business goes to countries including Sri Lanka, Singapore, Malaysia and UAE. India loses millions of dollars in foreign exchange to other countries, which have better tax laws and cheaper costs. Maintenance accounts for around 10% of an airline's cost.
03/03/16 Shahkar Abidi/Daily News & Analysis
To Read the News in full at Source, Click the Headline
Further, foreign aircraft brought to India for MRO work will be allowed to stay up to six months or as extended by the aviation regulator Directorate General of Civil Aviation. The aircraft can carry passengers at the beginning and end of the stay period in India.
MRO is a Rs 5,000 crore market in Asia, out of which about 90% business goes to countries including Sri Lanka, Singapore, Malaysia and UAE. India loses millions of dollars in foreign exchange to other countries, which have better tax laws and cheaper costs. Maintenance accounts for around 10% of an airline's cost.
03/03/16 Shahkar Abidi/Daily News & Analysis
