Odisha to extends additional incentives for establishment of MRO at BPAI

Bhubnaeswar, Aug 13 (UNI) The Odisha cabinet today decided to extend additional incentives over and above the Industrial Policy Resolution (IPR) of 2022 to anchor MRO to facilitate the establishment of MRO facilities at Biju Patnaik International Airport(BPAI).

In a significant step towards transforming Odisha into a regional hub for aviation services, the State Cabinet has approved the establishment of a world-class Maintenance, Repair, and Overhaul (MRO) facility at Biju Patnaik International Airport (BPIA), Bhubaneswar.

This will be the first major MRO facility in Eastern India and a key milestone under the Government of Odisha’s vision to strengthen civil aviation infrastructure through the B-MAAN (Building and Management of Aviation Assets and Network) scheme.

Briefing newsmen Chief Secretary Manoj Ahuja said the Cabinet also approved a special package of additional incentives over and above the provisions under the Industrial Policy Resolution (IPR) 2022 to attract private sector participation in the capital-intensive MRO sector.

He said following a rigorous evaluation process, M/s Air Works India (Engineering) Pvt. Ltd., India’s oldest and largest third-party MRO provider, has been selected as the anchor investor to establish and operate the facility.
The Commerce & Transport Department will oversee implementation, while the High Power Committee on Aviation will facilitate project rollout and monitoring,the Chief Secretary said.

This Cabinet approval marks a visionary leap for Odisha’s aviation sector, firmly aligning with the State’s agenda of infrastructure-led, employment-driven growth,he added.

In the above context, geographical positioning of Odisha and the State’s proximity to several major air routes create substantial potential for MRO services catering to domestic and international carriers.
The aviation Maintenance, Repair, and Overhaul (MRO) market globally, as per a NITI Aayog report, is expected to reach USD 117 billion by 2031, an increase of 70 percent from USD 68.5 billion in 2021.
Considering India’s plans for increasing regional air connectivity, focusing both on passenger travel as well as cargo movement and the fleet expansion plans of India’s domestic airliners, the MRO requirements for servicing such fleet would significantly rise in the coming years.

India is poised to become the third largest aviation market after US and China.

The airline operators in India currently have a fleet size of around 713 aircrafts and have placed orders for procuring additional 1,000+ aircrafts planned in the coming 5-10 years.

In India, airlines spend around 12 percent to 15 percent of their overall revenues on maintenance, which becomes the second most expensive item after fuel (approx. 40 percent) of operating expenses).
The exponential rise in the aviation sector presents a strong case for the development of the MRO industry.

The NITI Aayog report mentions that the MRO industry in India is expected to reach USD 4.0 billion by 2031, at a CAGR of 8.9percent.