Odisha Clears Additional Incentives for First Major MRO Facility in Eastern India
Bhubaneswar airport to host Air Works India-led project aimed at making the state a regional aviation hub
Bhubaneswar – The Odisha Cabinet has approved a proposal to offer additional incentives, over and above those provided under the Industrial Policy Resolution (IPR) 2022, to attract an anchor investor for establishing a Maintenance, Repair, and Overhaul (MRO) facility at Biju Patnaik International Airport. The decision is designed to transform Odisha into a regional hub for aviation services and strengthen the state’s civil aviation infrastructure.
The project falls under the state’s Building and Management of Aviation Assets and Network (B-MAAN) scheme, which aims to expand and modernise aviation facilities. This will be the first major MRO facility in Eastern India, providing services to both domestic and international airlines while capitalising on Odisha’s strategic geographical position.
Strategic Industry Potential
A NITI Aayog report highlights the strong growth outlook for the MRO industry. The global market is projected to reach USD 117 billion by 2031, while India’s share is expected to touch USD 4.0 billion over the same period. With India’s aviation sector expanding rapidly, the demand for high-quality MRO services is set to grow exponentially.
Officials believe that hosting a large-scale MRO facility in Bhubaneswar will not only reduce dependence on foreign repair hubs but also open up new opportunities for skilled employment, ancillary industries, and technology transfer.
Air Works India as Anchor Investor
The Cabinet has selected M/s Air Works India (Engineering) Pvt. Ltd., the country’s oldest and largest third-party MRO provider, as the anchor investor to set up and operate the facility. Air Works India has decades of experience servicing a range of aircraft for commercial airlines, private operators, and defence establishments.
The company is expected to bring both technical expertise and operational efficiency to the project, ensuring the facility meets global standards. The Commerce & Transport Department will coordinate the implementation process, while the High Power Committee on Aviation will facilitate project rollout and closely monitor progress.
Boost to Odisha’s Aviation Ecosystem
The MRO project is expected to deliver multiple benefits to Odisha’s economy and aviation sector:
* Creating a skilled workforce in aircraft maintenance and repair.
* Reducing turnaround times for airlines operating in Eastern India.
* Encouraging related industries such as parts manufacturing, logistics, and training institutes.
* Enhancing Odisha’s profile as a destination for high-value investments.
By positioning itself as a maintenance hub, Odisha can attract more airlines to use Bhubaneswar as a base for operations, leading to increased passenger and cargo traffic through the state.
Part of a Larger Vision
The establishment of the MRO facility aligns with the state government’s broader strategy to modernise infrastructure, attract strategic investments, and diversify the industrial base. The Cabinet’s decision to extend additional incentives reflects a targeted approach to securing anchor investors in high-potential sectors.
Government officials emphasise that the incentives will complement existing IPR benefits, making Odisha a competitive choice for aviation-related investments compared to other states. The success of this project could pave the way for more large-scale aviation infrastructure developments in the future.
With the groundwork now in place, the state will move to fast-track approvals, land allocation, and related infrastructure development to ensure timely completion of the MRO facility. Once operational, it is expected to serve as a catalyst for transforming Odisha into a key player in India’s growing aviation maintenance industry.
