"It (discussion) is almost at final stages. There is some nitty-gritty which is to be sorted out," Pawan Hans Chairman and Managing Director B P Sharma said here today.
Hopeful that a pact could be inked by the end of this month, Sharma said the proposed MRO will initially provide maintenance and other related services for Dauphin and other Airbus choppers.
Speaking at the India Aviation-2016 event, Sharma said availability of land is not a constraint at the Juhu airport where the MRO is to come up.
The government owns 51 per cent stake in Pawan Hans while the rest is with ONGC.
More From This Section
Besides, Sharma said, the company is expected to hold parleys with the Telangana and Andhra Pradesh governments to explore business opportunities in the two states.
As per the memorandum of understanding (MoU) between Pawan Hans and HAL, both companies will form a joint working team and conduct detailed studies and work on the business plan, among others.
HAL has been manufacturing and overhauling its Cheetah or Chetak and Dhruv helicopters, besides providing support.
In the Budget 2016-17, the government has come out with various proposals, including Customs and excise duty exemption for tools and tool kits used in maintenance, repair and overhaul (MRO) works.
"The MRO business of Indian carriers is around Rs 5,000 crore, 90 per cent of which is currently spent outside India -- in Sri Lanka, Singapore, Malaysia and the UAE," Raju had said.
"Given our technology and skill base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines while retaining domestic business."
Besides, foreign aircraft brought to India for MRO work will be allowed to stay up to six months or as extended by aviation regulator DGCA. Such aircraft will also be permitted to carry passengers in flights at the beginning and the end of the period of stay in India.