Planning MRO centres
The government wants to set up more maintenance, repair and overhaul (MRO) centres for servicing aeroplanes operated by Indian airlines as well as serve those of international airlines.
Disclosing this in parliament on 7 Feb 2017, #Minister of State for Civil Aviation Jayant Sinha said Indian carriers spend around Rs.5,000 crore a year on MRO, 90 per cent of which is currently spent outside India, such as MRO centres in Sri Lanka, Singapore, Malaysia, United Arab Emirates.
“Given our technology and skill base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines,” he said in a written replay to the house members.
There are 109 approved MRO centres in India, seven of which are capable of overhauling planes.
Accordingly, the following provisions have been made in the Budget announcements for 2016-17:
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 (DGCA) approved Quality Managers of aircraft maintenance organisations.
MROs were required to provide proof of their requirements of parts, or orders from their client airlines. The clearance process 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.
To enable economies of scale, the restriction of one-year for utilisation of duty free parts has been extended to three years.
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.
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. fii-news.com
