Back `Aviation growth to provide impetus to MRO industry'
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| MRO business is expected to be $400 mpa in next 5 years |
The state of the MRO industry within the country indicates a virtual absence of credible third-party MRO facilities.
New Delhi , Sept 25
The country's current growth in the aviation sector provides it with an opportunity to develop the maintenance, repair and overhaul (MRO) industry, the Chairman and Managing Director of Air India and Chairman of the Confederation of Indian Industry Civil Aviation Committee, Mr V. Thulasidas, has said.
MRO growth
"The projected growth in the aviation sector will provide an impetus to the MRO industry," Mr Thulasidas said in a statement.
The chamber estimates that on an average, the size of the MRO business in India is expected to be $400 million per annum over the next 5 years.
The Directorate-General of Civil Aviation (DGCA) estimates that India would add an additional 450 aircraft to its existing fleet of 215aircraft over the next five years.
"The aviation sector provides an opportunity for building the avionics and aviation equipment capabilities of Indian industry; and for skilled Indian personnel to make a mark in the aviation sector globally," said Mr Thulasidas.
The chamber has pointed out that the state of the MRO industry within the country indicates a virtual absence of credible third-party MRO facilities.
"While captive MRO operations of the existing airlines provide the basic infrastructure and expertise for development of the industry, there is also a need for third-party maintenance and overhaul to support the requirements of the domestic airlines," the statement adds.
MRO hub
To emerge as an MRO hub for the region, there were regulatory and infrastructural limitations that need to be addressed, the chamber statement points out.
To promote the industry, the chamber has stressed on the need to ensure uniformity in tax structure and tax incidence on varying trade practices.
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