Odisha Cabinet Approves Additional Incentives For MRO Facility At Bhubaneswar Airport
The MRO industry is critical to support the expansion of India's aviation sector, which is expected to become the third-largest in the next few years.
The Odisha Cabinet has issued a proposal to extend additional incentives for the establishment of maintenance, repair, and overhaul facilities at the Biju Patnaik International Airport in Bhubaneswar, according to a release issued by the state's Commerce and Transport Department.
A day earlier, the state cabinet had approved the establishment of an MRO facility at the Bhubaneswar airport. This will be the first major MRO hub in eastern India.
Following a rigorous selection process, Air Works India (Engineering) Pvt., the country’s oldest and largest third-party MRO provider, has been chosen as the anchor investor to establish and operate the BPIA facility.
The project forms a key component of Odisha’s Building and Management of Aviation Assets and Network scheme, aimed at bolstering civil aviation infrastructure.
India’s aviation sector is on a rapid growth trajectory, with the country expected to become the world’s third-largest aviation market after the US and China.
The MRO industry is critical to support the aviation sector’s expansion. According to a NITI Aayog report, the global MRO market is projected to rise from $68.5 billion in 2021 to $117 billion by 2031 — a 70% increase.
In India, the market is expected to touch $4 billion in the same period, growing at a CAGR of 8.9%. This demand is being fuelled by the country’s expanding airline fleet, increased regional air connectivity, and rising passenger and cargo traffic.
At present, Indian airlines operate around 713 aircraft and have placed orders for more than 1,000 additional aircraft for delivery over the next 5–10 years, the release said. Maintenance is already the second largest cost for airlines, accounting for 12–15% of revenues, behind fuel at approximately 40% of operating expenses. A robust domestic MRO capability will help reduce reliance on overseas facilities, lower costs, and speed up maintenance turnaround times.
