Airlines spend some 13–15 percent of their revenues towards Maintenance, Repair and Overhaul (MRO) and presently this revenue goes to countries outside India. What are roadblocks to a vibrant MRO industry in India? Discuss in the light of Draft National Civil Aviation Policy 2015.

Roadblocks to a vibrant MRO industry

  • International airports lack hanger space, which is needed for temporary protective storage of the aircrafts.
  • Setting up MRO is highly capital intensive with high initial as well as recurring investments
  • Operating a credible MRO is highly dependent on trained technical manpower, tooling, and world-class maintenance services.
  • Non-availability of spare parts

National Civil Aviation Policy 2015 provides for

  • Services under MRO to be zero rated
  • Zero custom duty over tools and toolkits for MRO
  • Foreign aircraft brought to India for MRO will be allowed to stay for longer duration
  • Prompt visa to Foreign MRO experts
  • Temporary Landing Permits for foreign pilots
Question for UPSC Mains:
Airlines spend some 13–15 percent of their revenues towards Maintenance, Repair and Overhaul (MRO) and presently this revenue goes to countries outside India. What are roadblocks to a vibrant MRO industry in India? Discuss in the light of Draft National Civil Aviation Policy 2015.

Published: February 6, 2016 | Modified:June 27, 2019

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