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The Yogi Adityanath government in Uttar Pradesh is pitching for ‘Make in UP’ in the growing aviation sector, amid projections that India would surpass the US and China to become the world’s top market by the turn of the decade.
Leading Indian and foreign companies, including from the US, have shown interest in setting up their manufacturing and assembly units in UP.
Uttar Pradesh will develop an aviation hub on over 1,000 acres in Noida to manufacture and assemble aircraft, and to provide maintenance, repair, and overhaul (MRO) services to both Indian and foreign planes.
According to Yamuna Expressway Industrial Development Authority (YEIDA) Chief Executive Officer Arunvir Singh, consultancy firm PwC has been tasked with preparing the layout for the hub. “Several companies are eager to invest, and discussions and meetings have taken place with many companies through the US embassy,” he said.
The aviation sector is recovering fast from the pandemic blues. The domestic air traffic in the current financial year 2023-24 is expected to touch 150-155 million, crossing the pre-pandemic level.
The growing fleet of airliners, expanding network of airports, falling airfares, and the burgeoning crop of youth travelers continue to catalyse the growth of the aviation sector, providing opportunities for aircraft and spare part manufacturers as well as MRO service providers.
Meanwhile, the aviation hub will overlook the upcoming Jewar International Airport in Noida, which is touted to be Asia’s largest. It will not only repair domestic aircraft but also provide MRO services to aircraft from other countries. At present, Indian airliners have to get their aircraft repaired abroad.
Singh said the process of acquiring 1,365 hectares of land in the second phase of Noida International Airport Limited (NIAL) was underway for the proposed MRO and aviation hub.
“As soon as its layout is prepared by the PwC, the NIAL Board will take decisions regarding the implementation of the state aviation hub scheme. The initiative is expected to generate employment opportunities and fulfill the vision of aviation manufacturing and MRO,” he added.
The state will also introduce an aviation manufacturing scheme to encourage airplane assembling, engine manufacturing, nozzle manufacturing, and other aircraft equipment manufacturing companies to establish their units.
Recently, the state announced its foreign direct investment (FDI) policy to provide benefits to global companies looking to invest in UP. The government is confident of leveraging the FDI policy in the aviation hub.
