NOIDA (Australia): Noida International Airport Ltd (NIAL) is expected to issue an Expression of Interest (EOI) next month for setting up a Maintenance, Repair and Overhaul (MRO) centre adjacent to the upcoming Noida International Airport In Jewar.
This hub will be part of the second phase of the airport project and will involve the acquisition of 1,365 hectares of land specifically earmarked for this sector, as well as a Air traffic hub.The Land acquisition The process is currently underway.
NIAL representatives said they were in talks with some of the world’s leading Aircraft manufacturer to participate in this initiative.
To encourage investment, the government has introduced a new MRO policy that will increase capital Investment grants between 5% and 12% for companies that submit their applications by 31 December 2024.
NIAL CEO Arun Vir Singh said, “We are currently in talks with four major companies and are urging them to invest in Jewar. The government is committed to developing the state as a MRO Hub and has introduced an exclusive policy to support this. The demand for MRO services in India is expected to grow faster than the global average, driven by the increasing Fleet size and passenger transport.”
There are currently 713 civil aircraft in service in the country, and over 1,500 more will be added to the fleet over the next seven years, Singh added.
“Currently, major airports in India have limited or no space to set up MRO hangars within or near the airport. Noida International Airport will not only have an MRO facility within the airport premises but also a larger facility adjacent to it. This sector has significant potential as maintenance costs account for about 12-15 per cent of total revenue, making it the second most expensive item after fuel,” he explained.
Meanwhile, the concessionaire of Noida International Airport has floated a global tender for developing an MRO facility on a 40-acre site within the 1,334-hectare airport premises. Singh said the concessionaire will have to start commercial operations of the MRO facility by 2030.
