Odisha Approves Incentives For Bhubaneswar Airport MRO Hub

18 Aug 2025 CW Team

The Odisha Cabinet has approved additional incentives, beyond the provisions of the Industrial Policy Resolution (IPR) 2022, for the establishment of a Maintenance, Repair and Overhaul (MRO) facility at Biju Patnaik International Airport (BPIA) in Bhubaneswar. The proposal, brought by the Commerce and Transport Department, was cleared in a cabinet meeting chaired by Chief Minister Mohan Charan Majhi.

The facility will be the first of its kind in Eastern India and is expected to attract private investment while strengthening Odisha’s aviation infrastructure. It also aligns with the state’s Building and Management of Aviation Assets and Network (B-MAAN) scheme, which aims to expand aviation infrastructure and services across Odisha.

Air Works India (Engineering) Pvt Ltd, one of the country’s oldest MRO firms, has been selected as the anchor investor to set up and operate the hub. Its involvement is expected to ensure high operational standards and encourage additional players to join the aviation ecosystem.

The Commerce and Transport Department will oversee the project, while a High-Powered Committee on Aviation will monitor rollout, coordination and issue resolution.

The decision comes at a time when India’s aviation industry is expanding rapidly. According to NITI Aayog, the global MRO market is projected to rise from USD 68.5 billion in 2021 to USD 117 billion by 2031, a growth of 70 per cent. India, set to become the world’s third-largest aviation market after the US and China, currently operates around 713 aircraft with plans to add over 1,000 in the next decade.

MRO expenditure remains significant, with Indian carriers spending between 12 and 15 per cent of total revenues on maintenance, second only to fuel costs at about 40 per cent. India’s MRO industry is forecast to grow to USD 4 billion by 2031 at a CAGR of 8.9 per cent, creating opportunities for regional hubs like Odisha’s proposed facility.

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