New Delhi, May 19, 2020: The Centre’s plans to make India a global hub for Maintenance, Repair and Overhaul (MRO) hub has once again presented before the Hindustan Aeronautics Limited (HAL) an opportunity to realise its old plan to convert the HAL Airport into an MRO facility.
Back in 2008 following the closure of HAL Airport for commercial use, the defence PSU was all set to come
up with an MRO facility at the airport as it had even got its shareholder’s approval.
However, the global recession in 2008 and the subsequent slowdown in the aviation industry forced HAL to
scrap its plan. Now, more than a decade later even though there is a similar recession-like environment
prevailing due to the Covid-19 pandemic, it can use the Centre’s announcement to realise its dream of
starting an MRO facility at the airport.
While announcing the fourth tranche under the Aatmanirbhar Bharat Abhiyaan, Finance Minister Nirmala
Sitharaman said that the government plans to make India become a global hub for aircraft MRO.
“Tax regime for MRO ecosystem has been rationalised. Aircraft component repairs and airframe maintenance
to increase from Rs 800 crore to Rs 2,000 crore in three years. It is expected that major engine manufacturers
in the world would set up engine repair facilities in India in the coming year. Convergence between defence
sector and the civil MROs will be established to create economies of scale. This will lead to maintenance cost
of airlines coming down,” Sitharaman said.
HAL Airport location is suited for having an MRO, besides, it is the only airport in the country to have four
separate radar systems On the government’s announcement and whether it plans to renew its proposal to convert HAL Airport into an MRO facility, the defence PSU said that it is too early to say anything according the the report published in indiatimes.com.
“The issue requires a deep study,” a company official told Bangalore Mirror.
However, aviation experts feel that HAL should make use of the opportunity and utilise its existing assets at
the airport and convert it into an MRO facility.
“HAL Airport as a location is very well suited for having an MRO. The airport has a very long runway which
has been built for military test flying and it is ideally suited for an MRO. Besides, it is the only airport in the
country to have four separate radar systems. Another big advantage for the HAL airport is that the N-563 air
corridor which starts from Muscat and runs all the way to Singapore is right above the airport,” said Devesh
Agarwal, an aviation expert and president of Bangalore Chamber of Industry and Commerce.
Another expert said that Bengaluru is ideally suited for having an MRO since it is an aviation hub and many
companies are located in the city.
