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Sanjay Singh / New Delhi

To encourage In its airlines to carry out aircraft maintenance activities within the country, the Ministry of Civil Aviation (MoCA) has announced a new policy, which includes leasing of land through open tenders and abolishing royalty charged by the Airport Authority of India (AAI) for the Maintenance Repair and Overhaul (MRO) business.


This new aviation policy will give fillip to export of aircraft maintenance services by 2025.
 Besides, as per the policy announced by civil aviation minister Jyotiraditya Scindia, land allotment for entities setting up MRO facilities will be for a period of 30 years from the current three to five years as the government aims to make India a “global MRO hub.”

Industry experts said the new policy will not only aid in the growth of domestic aviation industry but could also spur export of MRO services outside India, especially in South-East Asia.


At present, air service operators send their aircraft for maintenance to foreign countries – mainly to the Middle East and the South-East Asian region – as it is less expensive than the domestic market.


Available market reports peg the Indian MRO industry (excluding defence) to be worth USD 2 billion annually, with domestic players barely handling 16% of the total business. The remaining 85% or almost USD 1.7 billion, especially in the area of components and engines, is currently done abroad.

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