Union Budget offers Boost up to Nagpur MRO
With recent Union budget, the Nagpur MRO (Maintenance, Repair and Overhaul) aircraft has got great wings. Now, it is not liable on tool and tool-kits that are required for the facilities. Budget also helps to restrictions on usage of duty free parts annually and its import has also been done.
Things which helps to Nagpur MRO
Actually, foreign aircraft brought to India for MRO work. It will be allowed to stay up to six months here. But it can be extended by the aviation regulator Directorate General of Civil Aviation.
At the beginning stage, this aircraft will carry passengers. At the end, it have stay period in India.
In Asia, MRO has Rs 5,000 crore markets. It also goes to different countries like Sri Lanka, Singapore, Malaysia and UAE. It is about 90% of business. Moreover, India loses millions of dollars in foreign exchange to other countries. The main reason is that these countries have better tax laws and cheaper costs. An airline’s maintenance cost accounts is around 10%.
In the past maintenance work was conducted in-house through aviation consultant CAPA. In 1990 airlines, it started outsourcing the work to focus on their core business of commercial flying by low-cost carriers.
According to under 2006 deal, it totally helped in setting up over Rs 600 crore facility as part of its MoU with Surroundings India in bargain of the national carrier getting over 100 aircraft. The MRO project at special economic zone of multi-modal international cargo hub and airport near Nagpur got delayed for several reasons.
The main reason is land acquisition. It was handed over to Air India last year for operations. The officials said, the facility has two 100×100 meter hangars for wide-body aircraft and another twenty-four, 000 square meter region for other related function.
There are three main Nagpur MRO capabilities: Airframe, engine and component services.