PM Modi expects the French group’s investment in India will continue at same pace
Prime Minister Narendra Modi said the Safran Aircraft Engine Services India (SAESI) Rs.1,300 crore facility, inaugurated on 26 Nov, will help establish India as a Global Maintenance, Repair, and Overhaul (MRO) Hub http://commerce.gov.in.
“From today India’s aviation sector is taking a new flight. Safran’s new facility will help establish India as a Global Maintenance, Repair, and Overhaul (MRO) Hub,” said PM Modi as he inaugurated via video conference the facility at GMR Aerospace and Industrial Park – SEZ, Rajiv Gandhi International Airport, Hyderabad.
The Prime Minister underlined that this MRO facility will also create new opportunities for youth in the high-tech aerospace sector, noting the Safran Board and Management confidence and hope in India https://www.bseindia.com/.
He expressed his expectation that Safran’s investment in India will continue at the same pace as India’s aviation sector has advanced at an unprecedented pace in recent years.
PM Modi noted that airlines are consistently expanding their active fleet to meet increasing demand from travellers, and pointed out that Indian airline companies have placed orders for more than 1,500 new aircraft https://www.nseindia.com/.
Underlining that with the rapid expansion of India’s aviation sector, the need for MRO facilities has also increased, the PM observed that nearly 85 percent of India’s MRO work has been taking place outside the country, which led to higher costs, longer turnaround times, and aircraft remaining grounded for extended periods. “Such a situation was not suitable for a vast aviation market like India.”
He pointed out that the Government is developing the nation as one of the world’s major MRO hubs, and it is for the first time that a global OEM, namely Safran, is establishing Deep Level Servicing facilities in the country https://sbi.com.in/.
“Safran’s global training, knowledge transfer, and partnership with Indian institutions will help create a workforce that will, in the coming years, give new momentum and direction to the entire MRO ecosystem,” the Prime Minister underlined. “India does not want to remain limited to aviation MRO alone, and is also working on a large scale to develop an MRO ecosystem connected with shipping.”
PM Modi emphasised that India is promoting “Design in India” on a large scale across every sector, and urged the Safran team to explore possibilities of aircraft engine and component design in India .
He remarked that India’s vast MSME network and its young talent pool would provide significant support in this endeavour. Noting that Safran Aerospace works extensively in aerospace propulsion systems, the PM expressed his wish that the company should also leverage India’s talent and opportunities for propulsion design and manufacturing.
The Prime Minister underscored that today’s India is not only dreaming big but also taking bold decisions and achieving even greater accomplishments. “We are dreaming big, doing bigger and delivering best.”
Underlining that to attract global investment and global industries, some of the biggest reforms in independent India have been undertaken. PM Modi remarked that first, the doors of the economy were opened; second, the nation’s economic fundamentals were further bolstered; and third, ease of doing business was strengthened.
Prime Minister pointed out that today in most sectors, 100 percent FDI is possible through automatic routes, and even in sectors like defence, where earlier the private sector had no space, 74 percent FDI has now been opened through automatic routes.
He underlined that a major approach has also been adopted in the space sector. The Prime Minister stated that these steps have sent a clear message to the world — “India welcomes investments, India welcomes innovation.”
He further noted that Production Linked Incentive schemes have attracted global manufacturers towards Make in India.
Underscoring India today has rapid growth, a stable government, a reform-oriented mindset, a vast young talent pool, and a large domestic market, PM Modi remarked that most importantly, for those investing in India, the country considers them not merely as investors but as co-creators, stakeholders in the journey of a developed India.
The Prime Minister concluded by stating, “India is proving by betting on India is the smartest business decision of this decade.”
Background
Safran Aircraft Engine Services India (SAESI) is Safran’s dedicated Maintenance, Repair, and Overhaul (MRO) facility for LEAP (Leading Edge Aviation Propulsion) engines, which power the Airbus A320neo and Boeing 737 MAX aircraft. The establishment of this facility marks a significant milestone, as it is not only one of the largest global aircraft engine MRO facilities but also the first time, a global engine OEM (original equipment manufacturer) has set up an MRO operation in India.
Spread across 45,000 sqm within the GMR Aerospace and Industrial Park – SEZ, the state-of-the-art facility developed with an initial investment of around Rs.1,300 crore. Designed to service up to 300 LEAP engines annually, SAESI facility will employ over 1,000 highly skilled Indian technicians and engineers upon achieving full operational capacity by 2035. The facility will feature advanced process equipment to deliver world-class engine maintenance and repair services.
The MRO facility will be a huge step towards the goal of Aatmanirbharta in the aviation sector. Developing indigenous capabilities in MRO will reduce foreign exchange outflows, create high-value employment, strengthen supply-chain resilience and position India as a global aviation hub.
The Government is actively working to build a robust MRO ecosystem to support the sector’s rapid growth. Key policy initiatives of the government — including GST reforms in 2024, MRO Guidelines 2021, and the National Civil Aviation Policy 2016—have simplified operations for MRO providers by rationalizing tax structures and reducing royalty burdens. Fiinews.com
