Ahead of Budget 2019, Maintenance, Repairs and Overhaul Association of India (MAOI) has presented a memorandum to the Ministry of Finance, expressing concerns regarding the dwindling condition of Maintenance, Repairs and Overhaul (MRO) industry in India — that has recorded negative growth in the current year 2018-19.
The MRO industry has lost 90,000 jobs to countries like Sri Lanka, Singapore, Thailand, France, and Germany, owing to 90 per cent of the country’s MRO requirements being imported.
Under the pre-budget memorandum, MAOI has recommended reducing GST for Indian MRO services to 5 per cent. Furthermore, a request has been made to grant ‘Infrastructure’ status to the MRO industry, that fears a shut down despite the aviation boom in India.
Following this, MAOI has appealed to the government to fix the lop-sided tax policies, thereby creating a level playing field between the Indian MRO industry and foreign MROs.
Ravi Menon, Vice-President, MAOI said, “Indian MRO players have more than adequate capability for Airframe MRO. The total MRO spend over the last five years has been close to INR 31,500 Crores and Airframe MRO constitutes approximately 27 per cent of total MRO value which is INR 9,450 Crores. This is the direct revenue loss in foreign exchange to the Government of India.
“Besides, the development of a sustainable ecosystem in terms of component overhauls too is being neglected, jeopardising its future prospects.”