New Delhi: To attract more investments, the Civil Aviation Ministry on Thursday announced a new policy for Maintenance, Repair and Overhaul (MRO) services that includes leasing of land through open tenders and abolishing royalty charged by the AAI.
Besides, land allotment for entities setting up MRO facilities will be done for 30 years instead of the current short term period of 3 to 5 years. Announcing the new policy, Civil Aviation Minister Jyotiraditya Scindia said discussions are on for having military and civil convergence with respect to MRO activities.
Under the new policy, the rate of lease rental would be decided through bidding instead of the current practice of having pre-determined Airports Authority of India rates. Also, the rate of escalation for lease rental would be 15 per cent after every 3 years. At present, the escalation rate is 7.5 per cent to 10 per cent per annum.
The land will be allotted through open tenders instead of the current practice of allotment based on an entity's request.
According to the minister, there will also be changes in the renewal of the contract of existing leaseholders. On the expiry of existing contracts, the land given to these MROs would be allotted on the basis of bidding.
"The existing MRO would have the right of first refusal if his bid is within 15 per cent of the bid given by the highest bidder, and he agrees to match the rates quoted by the highest bidder. Also, the existing MRO shall settle all disputes and clear all the outstanding dues," the ministry said in a note.
To push MRO activities for aircraft and helicopters in the country, the ministry has identified eight airports for attracting investments to set up MRO facilities. The eight airports are those at Begumpet, Bhopal, Chennai, Chandigarh, Delhi, Juhu, Kolkata and Tirupati.
Besides, the ministry plans to go live with AirSewa 3.0 portal by September 30. "Under AirSewa 3.0 a feature is being developed wherein a user can escalate the ticket to escalation officer in stakeholder organisation, if he is not satisfied with the resolution by a nodal officer," as per the note.