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GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
RAJYA SABHA
UNSTARRED QUESTION NO. : 2577
TO BE ANSWERED ON THE 16th March 2026
REGIONAL CONNECTIVITY AND AIRCRAFT MAINTENANCE
2577. DR. SIKANDER KUMAR
Will the Minister of CIVIL AVIATION be pleased to state:-
(a) the specific roadmap and timelines for establishing indigenous aircraft manufacturing
ecosystem and the Special Purpose Vehicle (SPV) for regional transport aircraft as
highlighted in Union Budget 2026-27;
(b) the details of Basic Customs Duty exemptions provided for aircraft components and
maintenance, repair and overhaul raw materials and the projected reduction in the $1.5 billion
annual foreign exchange outflow due to overseas maintenance; and
(c) the steps being taken to address 50 per cent vacancy in technical positions at Directorate
General of Civil Aviation to ensure safety oversight as India becomes the world's third-
largest aviation market?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar
Mohol)
(a) and (b) The Government has taken several steps over the years for establishing indigenous
aircraft manufacturing and Maintenance, Repair and Overhaul (MRO) ecosystem in the
country. The Union Budget 2026-27 includes the following measures:
i. Nil Basic Customs Duty (BCD) has been provided for components or parts including
engines, of aircraft for manufacture of aircraft and for manufacture of parts for manufacturing
the said aircraft.
ii. BCD exemption for parts, testing equipment, tools and tool-kits for MRO of aircraft,
components or parts of aircraft has been extended till 31st March, 2028.
iii. Nil BCD has also been provided for raw materials for manufacture of parts of aircraft for
maintenance, repair, or overhauling of aircraft or their components or parts including engines,
when imported by Public Sector Units under the Ministry of Defence.
(c) Out of 1063 sanctioned technical posts in Directorate General of Civil Aviation (DGCA),
426 technical posts were created during the period 2022 to 2024 as a part of the restructuring
of DGCA. This was done keeping in view, inter-alia, the current & futuristic expansion of the
sector and enhanced role of DGCA as a safety regulator. As a part of recruitment exercise,
167 candidates have been selected/recommended, out of which offer of appointments havealready been issued to 106 candidates. Further, 42 candidates have been requested from the
reserve panel with the recruiting agency.
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