From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Jul 15: Though the Government has not prepared any formal policy on aircraft Maintenance, Repair and Overhaul (MRO) facilities, necessary constraints have been identified in consultation with the stakeholders which affect the growth of MRO activities, Union Minister of State for Civil Aviation, G M Siddeswara informed the RajyaSabha today.
The Minister said Finance Ministry has been requested to remove Service Tax on MRO work or provide a Service-tax holiday for ten years
It has also been requested to reduce custom duty on import of consumables and tool-kits used by MROs as are applicable to airlines maintaining their own aircraft, along with providing faster custom clearance round-the-clock on all days.
The Finance Ministry has also been requested to simplify the procedures of custom clearance and procedures specifying time-limits to consume spare parts.
Siddeswara said the State Governments have also been requested to remove VAT on spare parts sold by MROs.
The Airports Authority of India (AAI) has been asked to relax the stringent requirement of royalty charged on MRO revenues and identify areas at airports where MRO activities can be started, the minister added.