The Centre’s plans to make India a global hub for Maintenance, Repair and Overhaul (MRO) hub has once again presented before the Hindustan Aeronautics Limited (HAL) an opportunity to realise its old plan to convert the HAL Airport into an MRO facility.
Back in 2008 following the closure of HAL Airport for commercial use, the defence PSU was all set to come up with an MRO facility at the airport as it had even got its shareholder’s approval.
However, the global recession in 2008 and the subsequent slowdown in the aviation industry forced HAL to scrap its plan. Now, more than a decade later even though there is a similar recession-like environment prevailing due to the Covid-19 pandemic, it can use the Centre’s announcement to realise its dream of starting an MRO facility at the airport.
While announcing the fourth tranche under the Aatmanirbhar Bharat Abhiyaan, Finance Minister Nirmala Sitharaman said that the government plans to make India become a global hub for aircraft MRO.
“Tax regime for MRO ecosystem has been rationalised. Aircraft component repairs and airframe maintenance to increase from Rs 800 crore to Rs 2,000 crore in three years. It is expected that major engine manufacturers in the world would set up engine repair facilities in India in the coming year. Convergence between defence sector and the civil MROs will be established to create economies of scale. This will lead to maintenance cost of airlines coming down,” Sitharaman said.
18/05/20 Hemanth CS/Bangalore Mirror
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Back in 2008 following the closure of HAL Airport for commercial use, the defence PSU was all set to come up with an MRO facility at the airport as it had even got its shareholder’s approval.
However, the global recession in 2008 and the subsequent slowdown in the aviation industry forced HAL to scrap its plan. Now, more than a decade later even though there is a similar recession-like environment prevailing due to the Covid-19 pandemic, it can use the Centre’s announcement to realise its dream of starting an MRO facility at the airport.
While announcing the fourth tranche under the Aatmanirbhar Bharat Abhiyaan, Finance Minister Nirmala Sitharaman said that the government plans to make India become a global hub for aircraft MRO.
“Tax regime for MRO ecosystem has been rationalised. Aircraft component repairs and airframe maintenance to increase from Rs 800 crore to Rs 2,000 crore in three years. It is expected that major engine manufacturers in the world would set up engine repair facilities in India in the coming year. Convergence between defence sector and the civil MROs will be established to create economies of scale. This will lead to maintenance cost of airlines coming down,” Sitharaman said.
18/05/20 Hemanth CS/Bangalore Mirror
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