The government today held consultations with domestic MRO industry players as it seeks to make India the global hub for the maintenance, repair and overhaul of aircraft and engines.
During the meeting, which was chaired by Civil Aviation Secretary Rajiv Nayan Choubey, the industry representatives gave a presentation on the overall scenario and on what can be done by the government and the private sector jointly to exploit the full potential of the MRO business, sources said.
The total Indian MRO market currently stands at USD 800 million, which is expected to touch the USD 2.5 billion mark by 2020, according to the industry estimates.
However, Indian MRO market is said to be around 30 per cent costlier than those in the neighbourhood like Sri Lanka, Dubai, Hong Kong, Singapore and China due to service tax and VAT, which had dampened the growth of the industry.
This was MRO industry's first interface with the ministry since Choubey took over as the new civil aviation ministry last month.
"Government is quite keen to make India as a hub for the global MRO Industry. The government at today's meeting sought suggestion from the MRO players, however, not much could be deliberated today as it was the first interface with them," the sources said.
A second meeting in this regard is expected to take place in the near future, where the issue are likely to be discussed in details, they said.
