Parliament Question: MRO facility development and aviation manufacturing

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION RAJYA SABHA UNSTARRED QUESTION NO. : 167 TO BE ANSWERED ON THE 2nd February 2026 MRO FACILITY DEVELOPMENT AND AVIATION MANUFACTURING 167. SHRI S. SELVAGANABATHY DR. SUMER SINGH SOLANKI SHRI NARAYANA KORAGAPPA Will the Minister of CIVIL AVIATION be pleased to state:- (a) the details of the Safran Maintenance, Repair and Overhaul (MRO) Centre inaugurated in Hyderabad in November 2025 and its significance for India's aviation maintenance ecosystem; (b) the progress made in establishing domestic MRO facilities, including the Air India mega MRO facility in Bengaluru; (c) the projected growth of India's MRO market and the steps being taken to position India as a regional MRO hub; and (d) the skill development initiatives being undertaken to create a trained workforce for expanding MRO sector? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) The Safran Aircraft Engine Services India (SAESI) facility inaugurated in Hyderabad is Safran's dedicated Maintenance, Repair and Overhaul (MRO) facility for Leading Edge Aviation Propulsion (LEAP) engines. The facility has been designed to service up to 300 LEAP engines annually. The MRO facility strengthens the domestic supply chain, deepens high-precision technical capabilities and fosters ancillary vendors. (b) As per information received, Air India and IndiGo have started construction of major MRO facilities for civilian aircraft at Bengaluru International Airport at an estimated investment of INR 1460 crore and INR 1100 crore respectively. (c) The MRO industry is projected to grow to USD 4 billion by 2031, registering a CAGR of 8.9 per cent. The Government has taken various measures to create a conducive environment for the development of aircraft MRO sector in the country. These include the new MRO Guidelines announced on 1st September, 2021 which inter alia abolish royalties and build in transparency and certainty in land allotments for MROs in AAI airports. On the taxation front, Government has reduced the taxes (IGST) on imports of aircraft components and aircraft engine parts to 5%, to make the domestic aerospace industry more competitive. GST on MRO has been reduced from 18% to 5% with full Input Tax Credit and Transactions sub-contracted by foreign OEMs/MRO to domestic MRO are treated as 'exports' with zero-rated GST. Customs duty has also been exempted on tools and tool kits. Further, the period for export of goods imported for repairs has been extended from six months to one year and the time-limit for re-import of goods for repairs under warranty has been extended from three to five years. More recently, the Visa Manual has been amended to incorporate suitable provisions for granting Business Visa and Temporary Landing Permit (TLP) to foreign pilots and crew of scheduled or non-scheduled flights coming for the purpose of MRO services in India. (d) Directorate General of Civil Aviation (DGCA) has issued a regulation, CAR-147 (Basic) - approved Basic Maintenance Training Organization which is in line with the international standards of International Civil Aviation Organization (ICAO) and harmonised as per European Union Aviation Safety Agency (EASA) regulations. The regulations streamline the syllabus and skilled training requirements for the development of competent and skilled manpower for the maintenance of aircraft. The regulations require part of practical training to be imparted by the approved Aircraft Maintenance Organisation (AMO) which provides a live environment, practical working exposure for enhancing the competency of students. ******