The aviation ministry, under Jyotiraditya Scindia announced a 100-day plan that includes developmental work at airports and policy to promote maintenance, repair and overhaul.
Scindia announced that a new policy aims to make India a global hub for MRO. “Discussions are also going on for convergence between civil and military works with respect to MRO. To boost MRO activities, the government has selected eight airports, including Delhi and Kolkata, for such works and to attract investments,” he said.
Under the new policy, the rate of lease rental would be decided through bidding instead of the current practice of having predetermined AAI (Airports Authority of India) rates. “Also, the rate of escalation for lease rental would be 15% after every three years. At present, the escalation rate is 7.5% to10% per annum. Land will be allotted through open tenders instead of the current practice of allotment on the basis of an entity’s request,” Scindia said.
The MRO industry believes this policy will help strengthen Indian MROs.