Airlines spend some 13–15 percent of their revenues towards Maintenance, Repair and Overhaul (MRO) and presently this revenue goes to countries outside India. What are roadblocks to a vibrant MRO industry in India? Discuss in the light of Draft National Civil Aviation Policy 2015.

February 6, 2024 October 27, 2024

Roadblocks to a vibrant MRO industry

International airports lack hanger space, which is needed for temporary protective storage of the aircrafts.
Setting up MRO is highly capital intensive with high initial as well as recurring investments
Operating a credible MRO is highly dependent on trained technical manpower, tooling, and world-class maintenance services.
Non-availability of spare parts

National Civil Aviation Policy 2015 provides for

Services under MRO to be zero rated
Zero custom duty over tools and toolkits for MRO
Foreign aircraft brought to India for MRO will be allowed to stay for longer duration
Prompt visa to Foreign MRO experts
Temporary Landing Permits for foreign pilots

« Previous Question GS-III: Economy & Economic Development Next Question »

Related Questions

1. Underline the implications of deregulation in the mining sector for India’s economic growth and environmental sustainability.

2. Comment on the challenges and potential solutions for balancing Minimum Support Price (MSP) with fiscal constraints and WTO regulations.

3. To what extent the authority of OPEC in deciding the global oil prices has eroded? What are the factors that led to this erosion? Examine.

4. Critically examine the circumstances that led to Oil Crisis of 1973. To what extent similar circumstances might appear in near future? Discuss.

5. Does the Indian fiscal situation call for the establishment of a fiscal council? Evaluate its utility in addressing the freebies issue.

6. Examine the case for the regulatory innovation in India’s efforts towards green transition.

Leave a Reply Cancel reply