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The announcement is going to benefit GMR Infrastructure and Air India. While GMR runs an MRO facility at Hyderabad airport, Air India has similar facilities at the Delhi and Mumbai airports.
The concessions include providing exemption from basic customs duty on parts and testing equipments for maintenance, repair and overhaul of aircrafts and parts thereof.
The Budget proposal also gives extension of time period from three months to one year for consumption/installation of parts and testing equipments imported for maintenance, repair and overhaul (MRO) of aircrafts by units engaged in such activities.
"The MRO industry is at a nascent stage. Encouraging the MRO sector will generate employment besides other benefits. Hence, I propose to provide certain concessions to the MRO industry," Finance Minister P Chidambaram said in his Budget speech for 2013-14 today.
The move may help carriers in reducing their aircraft maintenance costs as most of them send their aircraft outside the country for maintenance.
