Sitharaman said that the tax regime for the MRO ecosystem has been rationalised and aircraft component repairs and airframe maintenance will increase from Rs 800 crores to Rs 2000 crores in three years.
Finance Minister Nirmala Sitharaman, on May 16, said that the government had plans to make India a global hub for Aircraft Maintenance, Repair and Overhaul (MRO).
Announcing details of the fourth tranche of the economic package announced by Prime Minister Narendra Modi during his address to the nation, Sitharaman said that the tax regime for the MRO ecosystem had been rationalised and that aircraft component repairs and airframe maintenance would increase from Rs 800 crores to Rs 2,000 crores in three years.
"India has the capacity, manpower and skills; it can be a hub for many flights heading to South-East Asia and westwards," the finance minister said.
"Major engine manufacturers in the world would set up engine repair facilities in India in the coming year," Sitharaman said, adding that convergence between defence sector and the civil MROs would also be established to create economies of scale.
"This is a major step that we want to make sure India benefits from. Not just civilians, but also defence aircrafts will benefit from this move," the finance minister said while addressing the media.
Since May 13, this has been the fourth tranche of packages announced by the FM - each focused on various sectors of the economy.
The first set of measures announced on May 13, which focused on benefits for MSMEs, NBFCs, three tax measures and support for the Employees Provident Fund (EPF).
On May 14, the new schemes focused on migrant workers, street vendors, and small traders. On May 15, the measures were focused on agriculture and allied sectors and small farmers.