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Writer's pictureAequitas Victoria

Vision To Make India “Global MRO Hub” By Forming New MRO Activities

Legal Correspondent: Sonam Awasthy


09 September 2021, New policy aim is for making india “global MRO hub.” This policy gives light to investment and leasing of land through open tender and abolishing royalty charges which is charged by airport authority of India.This new policy will be followed by both civilian and military. MRO will facilities long term land allotment of 30 yrs.’ instead of current short term period of 3 to 5 yrs. For rental lease current practice of pre-determined rate of airports authority of india is replaced by bidding process.


Also, escalation lease rental would be 15% after every 3yrs,currently it’s rate 7.5% to 10% p.a. Land allotment through open tender instead of current practice of allotment based on an entities request. For existing leaseholder the contract will be renewed. For expiry of existing contract, land will be allotted to MRO’S through bidding process. The existing MRO has right of his first refusal if his bid is within 15% of the highest bid and he agree to match the rate quoted by highest bidder and they have to settle all disputes and outstanding dues. To boost MRO activities the minister of civil aviation identified 8 airports aircrafts and helicopters for investment. Airsewa 3.0 features is also developed, it’s an e-platform where user can seek redressal for the complaints. Flight training organisation at airport authority of india airports are being setup in the first phase at belagavi( Karnataka), jalgaon (Maharashtra), kalaburgi(Karnataka), khajuraho ( Madhya Pradesh) and lilabari(Assam). Under udan scheme five airports and six heliports would be operationalized. 50 routes are operationalized under udan scheme 30 of them would be operationalized by october. Kushinagar in uttar Pradesh is ready for inauguration and would be part of buddhist circuit, its regarding the infrastructure targets. The cost of aerodrome is Rs,2.55 crore. Other intiative includes new terminal building at dehradun airport and agartala airport. The latter cost is Rs.490 crore. There is upcoming jewar airport in uttar pradesh whose total project cost is Rs.29,560 crore.


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