Government-owned Airports Authority of India (AAI) plans to abolish royalty and offer steep discounts in lease rent to encourage maintenance, repair and overhaul (MRO) units to set up facilities at its airports.
Around 85 per cent of the $1.4 billion maintenance work of Indian airlines is carried out overseas and the government hopes that policy sweeteners will attract investment in the sector, generate employment and reduce import dependence.
Last year, the government cut goods and services tax (GST) rate on aircraft repair and maintenance work from 18 to 5 per cent. To further incentivise the industry, it will lease out land at airports at discounted rates to repair units.
