India MRO Aerospace & Defence expo, being held in Bangalore

In addressing the Union Government’s revised draft of the National Civil Aviation Policy (NACP), MM Activ Sci-Tech Communications and CANEUS International, in association with MRO Association of India will be hosting India’s only Maintenance, Repair & Overhaul expo, India MRO Aerospace & Defence, in Bengaluru on December 1 and 2, 2015.

The two-day exhibition will feature various industry leaders like Air India Engineering Services Ltd. (AIESL), Hindustan Aeronautics Ltd, Max MRO, Indocopter as well as original equipment manufacturers like Honeywell, Airbus, Snecma of the Safran Group. It will host the State Government of Karnataka and the participating Government of Gujarat, exhibiting their product and services.

Supported by the MRO Association of India, the focal point of the India MRO Aerospace & Defence will be based on reviewing the significant issue of having a strong maintenance, repair and overhaul space for both the domestic and international airlines. Growth of the MRO is no longer optional given present size of the Indian fleet and that the country spends about 13 -15% of its revenue towards its maintenance.

Led by the Honourable Prime Minister Shri Narendra Modi’s vision of Make-in-India, MRO is set to be of paramount importance, with all efforts focused on enabling India to become an Emerging Destination for MRO.

Founder Secretary General of MRO Association of India, Mr. Pulak Sen said that: “The two-day conference will focus on various areas of the MRO Industry with special emphasis on ramification of New Civil Aviation Policy for the Indian MRO Industry, Airlines Expectations from MRO, Coping with new technologies in MRO, Expectations of the Indian Defence Forces from the Indian MRO Industry. A very interesting subject that is being covered for the first time at any MRO forum across the globe is creating a Centre of Excellence in MRO — InCoE-MRO: Industry Led Centre of Excellence. A scale model of the same will also be exhibited.”

He further added, “The highlight of the two-day conference will perhaps be the CEO Conclave where policy makers and industry stake holder will debate and chalk-out a path to Make India a global MRO Hub.”

The conference will feature various interesting sessions including Power Talks by industry leaders, a CEO Conclave focusing on “How to make India a Global MRO Hub” as well as technical sessions focused on policy and technologies, leasing on MRO maintenance cost, expectation of Defence forces in MRO and lessors perspective and skill development.

The expo will also showcase a bevy of eminent speakers including Usha Pahdee, Joint Secretary, Ministry of Civil Aviation, T. Subarea Raju, Chairman and Managing Director, Dr. Milind Pimprikar, Chairman, Canues International, Shri Uday Naidu, CEO, GMR Aero Technic, Shri. Daniel Saldanha, Vice President – Engineering Quality, Jet Airways and other stalwarts from the industry.

Highlights from the NCAP
The NCAP has given the much needed boost to the Indian MRO industry with a number of reforms which include the following:
1. The provision under AIC 3 of 2010 of DGCA shall be reviewed to declare MRO ( aircraft servicing) as a separate category instead of clubbing with Ground Handling (GHA) for security procedures and remove restrictions on foreign registered aircraft for MRO work;
2. Service Tax on output services of MRO will be zero-rated;
3. To enable economies of scale and the period for which the spare parts imported by MROs can be stored tax-free, shall be extended upto 3 years;
4. Airport royalty and additional levies on MRO service providers will be rationalised in consultation with Airport Operators;
5. MoCA will persuade State Governments to make VAT zero-rated on MRO services

And the other important reform is Fiscal support:
1. It will be clarified that MRO, ground handling, cargo and ATF infrastructure co-located at an airport will also get the benefit of ‘infrastructure’ sector, with benefits under Section 80-IA of Income Tax Act.

2. The icing on the cake is the ‘Infrastructure’ status for MRO and other sub-sectors (Clause 11, NCAP 2015).

This entitles the MRO industry for priority lending, cheaper loans and exemption from corporate tax for ten years.

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