Modi 3.0 governance is all for industry-friendly policies and regulations for facilitate ease of doing business for aviation stakeholders with a spotlight on the Maintenance, Repair, and Operations (MRO) sector.
The Minister of Civil Aviation Ram Mohan Naidu is especially keen on revamping the MRO sector to create a sound ecosystem for independent third-party MROs in the country.
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In the Question Hour, the minister made a major announcement saying "for anyone wanting to set up an MRO with an airstrip or an airport anywhere in India, the Centre will provide all possible assistance."
He furthered his answer by saying the Indian MRO industry is expected to rise to $4bn in the next seven years from $2 million current.
"We want to create MRO facilities for both domestic and international airlines. For this, work is in progress," the minister added.
Some of the additions and changes in regulatory framework done by the Ministry of Civil Aviation in the recent budget are as follows
1) As part of the announcements made in Union Budget 2024-25, the period for export of goods imported for repairs has been extended from six months to one year. Also, the time-limit for re-import of goods for repairs under warranty has been extended from three to five years.
2) New MRO Guidelines announced on 1st September, 2021 inter alia abolish royalties and build in transparency and certainty in land allotments for MROs in AAI airports.
3) GST on MRO has been reduced from 18% to 5% with full Input Tax Credit from 1st April, 2020.
4) Transactions sub-contracted by foreign original equipment manufacturers (OEMs)/ MRO to domestic MRO are treated as 'exports' with zero-rated GST from 1st April, 2020
5) Exempted Customs Duty on tools and tool kits
6) Simplified clearance processing of parts
7) 100% Foreign Direct Investment permitted via automatic route for MRO
Published: 08 Aug 2024, 03:51 pm IST
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