Govt introduces new MRO policy to invite investment in aviation sector

28 Sep 2021 CW Team

Rather than the current short-term period of three to five years, land allotment for entities establishing MRO facilities will be done for 30 years.

Minister of Civil Aviation Jyotiraditya Scindia announced the new policy and stated that talks are underway to bring military and civil MRO activities closer together.

The goal, according to the minister, is to make India a global MRO hub.

Instead of the current practice of having predetermined Airports Authority of India (AAI) rates, the new policy will determine lease rental rates through bidding.

In addition, after every three years, the rate of escalation for lease rental would be 15%. At the moment, the annual escalation rate is between 7.5 and 10%. Instead of the current practice of allotment based on an entity's request, the land will be distributed through open tenders.

There will also be changes in the renewal of existing leaseholders' contracts, according to the minister.

When existing contracts expire, the land given to these MROs will be allocated through a bidding process.

The ministry has identified eight airports for attracting investments to set up MRO facilities to push MRO activities for aircraft and helicopters in the country.

Begumpet, Bhopal, Chennai, Chandigarh, Delhi, Juhu, Kolkata, and Tirupati are the eight airports.

In addition, the ministry is also planning to launch the AirSewa 3.0 portal by September 30.

In the first phase, eight Flight Training Organisations (FTOs) at AAI airports will be established under the PPP model at Belagavi (Karnataka), Jalgaon (Maharashtra), Kalaburgi (Karnataka), Khajuraho (Madhya Pradesh), and Lilabari, according to the minister (Assam).

Scindia said five airports would be operationalised under the regional air connectivity scheme UDAN as part of the 100-day plan.

The ministry stated that under UDAN, 50 routes will be operationalised, with 30 of them being operational by October.

In terms of infrastructure, Kushinagar in Uttar Pradesh is set to open and will be a part of the Buddhist circuit. The aerodrome will cost Rs 255 crore to build.

Other initiatives include the construction of new terminal buildings at Agartala and Dehradun airports, which will cost Rs 457 crore each. The latter will set you back Rs 490 crore.

Scindia informed the upcoming Jewar airport in Uttar Pradesh, which will cost Rs 29,560 crore in total.

Image Source

Also read: Indian Air Force, IIT Kanpur enter pact to boost aviation technology

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

In a bid to invite more investments, the Ministry of Civil Aviation has announced a new policy for maintenance, repair, and overhaul (MRO) services on Thursday, which includes land leasing through open tenders and the elimination of the AAI's royalty. Rather than the current short-term period of three to five years, land allotment for entities establishing MRO facilities will be done for 30 years. Minister of Civil Aviation Jyotiraditya Scindia announced the new policy and stated that talks are underway to bring military and civil MRO activities closer together. The goal, according to the minister, is to make India a global MRO hub. Instead of the current practice of having predetermined Airports Authority of India (AAI) rates, the new policy will determine lease rental rates through bidding. In addition, after every three years, the rate of escalation for lease rental would be 15%. At the moment, the annual escalation rate is between 7.5 and 10%. Instead of the current practice of allotment based on an entity's request, the land will be distributed through open tenders. There will also be changes in the renewal of existing leaseholders' contracts, according to the minister. When existing contracts expire, the land given to these MROs will be allocated through a bidding process. The ministry has identified eight airports for attracting investments to set up MRO facilities to push MRO activities for aircraft and helicopters in the country. Begumpet, Bhopal, Chennai, Chandigarh, Delhi, Juhu, Kolkata, and Tirupati are the eight airports. In addition, the ministry is also planning to launch the AirSewa 3.0 portal by September 30. In the first phase, eight Flight Training Organisations (FTOs) at AAI airports will be established under the PPP model at Belagavi (Karnataka), Jalgaon (Maharashtra), Kalaburgi (Karnataka), Khajuraho (Madhya Pradesh), and Lilabari, according to the minister (Assam). Scindia said five airports would be operationalised under the regional air connectivity scheme UDAN as part of the 100-day plan. The ministry stated that under UDAN, 50 routes will be operationalised, with 30 of them being operational by October. In terms of infrastructure, Kushinagar in Uttar Pradesh is set to open and will be a part of the Buddhist circuit. The aerodrome will cost Rs 255 crore to build. Other initiatives include the construction of new terminal buildings at Agartala and Dehradun airports, which will cost Rs 457 crore each. The latter will set you back Rs 490 crore. Scindia informed the upcoming Jewar airport in Uttar Pradesh, which will cost Rs 29,560 crore in total. Image SourceAlso read: Indian Air Force, IIT Kanpur enter pact to boost aviation technology

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..