“It is a small step in the right direction. The one-year window for consumption of spares is very realistic,” Air Works Managing Director Vivek Gour says.
The number of aircraft in India is increasing, and there is an urgent need to improve MRO facilities, Gour adds.
He says the government’s announcement will allow local MRO firms to compete with existing facilities in the region and foreign firms.
Last June, Air Works invested 1.2 billion rupees ($22 million) in Dubai’s Empire Aviation Group (EAG) to strengthen its presence in the Middle East and provide aircraft management services to customers in India.
“The move essentially means that we do not have to pay import duty for one year. This will not only improve efficiency, but will give us a lot of flexibility to not only provide labor and consultancy jobs, but also to get spares and save some money that will in turn benefit our customers,” Gour adds.
Last year, then-Finance Minister Pranab Mukherje offered a waiver in custom duty for the import of spares and testing equipment by MROs under the condition that the spares were utilized in three months.
Photo: Air Works