Bhubaneswar: With an aim to create employment opportunities and boost aviation industry, the State Government has decided to start Maintenance, Repair, and Overhaul (MRO) services at the Biju Patnaik International Airport (BPIA) here.
The State Commerce and Transport Department is in the process of signing a 25-year rental agreement with Airports Authority of India (AAI) for operations and maintenance of the hangar and associated facilities at BPIA for the MRO services, an official said.
In view of the same, the Department desires to allot the said hangar at BPIA to interested MRO operators. So, the government has invited Expression of Interest from MRO operators to operate and maintain the hangar and associated facilities for MRO services at Biju Patnaik International Airport, the official said.
Considering India’s plans for increasing regional connectivity, focusing both on passenger travel as well as cargo movement particularly for perishables including the use of drones and helicopters, India’s MRO requirements are expected to significantly rise in the coming years.
Besides, the State Government has identified manufacturing in aviation and MRO facilities as a ‘Thrust Sector’ in its Industrial Policy Resolution (IPR) of 2022 for investment and growth, envisioning the state as a major hub for MRO activities in South Asia.
The strategic vision is built around leveraging the state’s aviation infrastructure and policy frameworks to attract global and domestic investments, sources said.
Therefore, an Expression of Interest (EOI) for operations and maintenance of the hangar and associated facilities at BPIA for the MRO services has been invited from interested MRO operators, they said.
Currently, major airports in India have limited or no provision for establishing MRO hangars within or near their premises. So, the State has taken steps in advance to provide a dedicated hanger for MRO services.
This move of the State Government would support growth in the aviation industry in the State apart from creating employment opportunities for the youths, said an airport official.
The State will provide incentives to the selected MRO operator under the Civil Aviation Policy 2022 and the Industrial Policy Resolution (IPR), 2022.
As per the IPR-2022, the State will provide land at concessional rate with 100% Stamp duty exemption to the operator. There is also provision of 30% capital investment subsidy on actual investment in plant & machinery (excluding the cost of land and building) with no upper cap, disbursed in a phased manner over a period of 5 years from the date of commencement of commercial production.
Similarly, 100% exemption from payment of Electricity Duty for a period of 7 years from the date of commencement of commercial production is also offered by the State.
Reimbursement of power tariff of Rs 2 per unit and 100% exemption or reimbursement of cross subsidy surcharge for seven years would be provided.
The eligible R&D investments in the identified priority and thrust sectors would be eligible for 50% assistance on investments subject to a maximum of Rs 10 crore, the sources informed.