Govt introduces new MRO policy to invite investment in aviation sector
AVIATION & AIRPORTS

Govt introduces new MRO policy to invite investment in aviation sector

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 Source

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

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

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code