Government Steps to encourage MRO Facilities in India

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Government Steps to encourage MRO Facilities in India -indianBureaucracy
Government Steps to encourage MRO Facilities in India -indianBureaucracy

Adequate facilities for Maintenance and Repair of planes are available in the country. However, for overhaul, only limited facility is available. Therefore, some Indian Carriers send their aircrafts to foreign countries to carry out the overhaul maintenance services in Directorate General of Civil Aviation (DGCA) approved maintenance organizations located abroad. However, carriers avail maintenance services from DGCA approved maintenance organizations depending upon their commercial considerations, duration for accomplishment of maintenance and lease requirements.

There are 109 (MROs) approved in India of which 07 are capable of carrying out overhaul of planes.

The MRO business of Indian carriers is around Rs 5000 crore, 90% of which is currently spent outside India – in Sri Lanka, Singapore, Malaysia, UAE etc. Given our technology and skill base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines. Accordingly, the following provisions have been made in the Budget announcements for 2016-17 :

  1. i)          The tools and tool-kits used by the MRO have been exempted from Customs duty. The exemption shall be given on the basis of list the tools and tool kits certified by the Directorate General of Civil Aviation approved Quality Managers of aircraft maintenance  organisations.
  2. ii)         MROs were required to provide proof of their requirements of parts, or orders from their client airlines. The process for the  clearance of the parts has been brought in line with that of the tool ?kits for a one time certification by DGCA approved Quality Managers in MRO’s.

iii)        To enable economies of scale, the restriction of one year for utilisation of duty free parts has been extended to three years.

  1. iv)        To allow import of unserviceable parts including aircraft components like engines and landing gears by MROs for providing exchange or advance exchange, the concerned notification has been revised to enable advance export of serviceable parts.
  2. v)         Foreign aircraft brought to India for MRO work will be allowed to stay for the entire period of maintenance or up to 6 months, whichever is lesser, provided it undertakes no commercial flights during the stay period. The aircraft may, however, carry passengers in the flights at the beginning and end of the stay period in India. For stay beyond 6 months, DGCA’s permission will be required.

 

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