Govt strongly advocates for aircraft manufacturing in India, to setup special purpose vehicle

Civil Aviation Minister K Rammohan Naidu

The government will set up a special purpose vehicle to push ahead with plans to start manufacturing commercial aircraft in India, Civil Aviation Minister K Rammohan Naidu said on September 4.

Speaking at a conference organised by industry body PHD Chamber of Commerce and Industry, Naidu highlighted the potential of the country's fast-growing aviation sector.

"The government is strongly pushing the idea of India manufacturing its own planes," Naidu said, adding that a special purpose vehicle will be set up with industry stakeholders and others.

According to him, efforts are being to ensure that aircraft manufacturing activities can start in the next five years, he said.

Hindustan Aeronautics Ltd (HAL) is already into manufacturing small civilian planes but on a smaller scale.

He also said there is a lot of potential in the country for MRO (maintenance, overhaul and repair) activities.

In Budget 2024, FM Sitharaman said the govt has extended the window for the re‐export of products imported by MRO of aircraft and shipping industries.

Re‐exporting is the process of sending back goods imported for specific purposes like jobbing, execution of a contract, servicing/repairing of machineries, display in fair/exhibition, etc.

The Bhartiya Vayuyan Vidheyak Bill 2024 was passed by the Lok Sabha in August that includes provisions to regulate the design and manufacturing of aircraft, supporting the Aatmanirbhar Bharat initiative.

The Bill seeks to remove redundancies and replace the Aircraft Act, 1934 -- that has been amended 21 times -- at a time when India is one of the fastest growing civil aviation markets in the world.