Prime Minister Shri Narendra Modi inaugurated the Safran Aircraft Engine Services India (SAESI) facility located at the GMR Aerospace and Industrial Park SEZ, Rajiv Gandhi International Airport, Hyderabad via video conferencing. Addressing the occasion, the Prime Minister highlighted, “from today India’s aviation sector is taking a new flight. Safran’s new facility will help establish India as a Global Maintenance, Repair, and Overhaul (MRO) Hub”. The Prime Minister underlined that this MRO facility will also create new opportunities for youth in the high-tech aerospace sector. He recalled that he had met the Safran Board and Management on 24th November, and noted that in every discussion with them earlier too, he witnessed their confidence and hope regarding India. He expressed his expectation that Safran’s investment in India will continue at the same pace. Extending his best wishes, the Prime Minister conveyed congratulations to Team Safran for this new facility.

Highlighting that in recent years India’s aviation sector has advanced at an unprecedented pace, Shri Modi remarked that today India is among the fastest growing domestic aviation markets in the world. He underlined that India’s domestic aviation market has now become the third largest globally. The Prime Minister observed that the aspirations of the people of India are reaching new heights, and consequently the demand for air travel in the country continues to rise. He noted that airlines are consistently expanding their active fleet to meet this demand. He further stated that Indian airline companies have placed orders for more than 1,500 new aircraft.

Underlining that with the rapid expansion of India’s aviation sector, the need for MRO facilities has also increased, Shri Modi remarked that nearly 85 percent of India’s MRO work has been taking place outside the country, which led to higher costs, longer turnaround times, and aircraft remaining grounded for extended periods. He underlined that such a situation was not suitable for a vast aviation market like India. Therefore, he stated that today the Government of India is developing the nation as one of the world’s major MRO hubs. Shri Modi further remarked that for the first time, a global OEM is establishing Deep Level Servicing facilities in the country.

Highlighting that Safran’s global training, knowledge transfer, and partnership with Indian institutions will help create a workforce that will, in the coming years, give new momentum and direction to the entire MRO ecosystem, the Prime Minister underlined that this facility will generate numerous employment opportunities for the youth of South India. He further stated that India does not want to remain limited to aviation MRO alone, and is also working on a large scale to develop an MRO ecosystem connected with shipping.

Underscoring India today has rapid growth, a stable government, a reform-oriented mindset, a vast young talent pool, and a large domestic market, Shri Modi remarked that most importantly, for those investing in India, the country considers them not merely as investors but as co-creators, stakeholders in the journey of a developed India. The Prime Minister concluded by stating, “India is proving by betting on India is the smartest business decision of this decade.” He once again extended his congratulations to all for the establishment of this modern MRO facility.

Background

Safran Aircraft Engine Services India (SAESI) is Safran’s dedicated Maintenance, Repair, and Overhaul (MRO) facility for LEAP (Leading Edge Aviation Propulsion) engines, which power the Airbus A320neo and Boeing 737 MAX aircraft. The establishment of this facility marks a significant milestone, as it is not only one of the largest global aircraft engine MRO facilities but also the first time, a global engine OEM (original equipment manufacturer) has set up an MRO operation in India.

Spread across 45,000 sqm within the GMR Aerospace and Industrial Park – SEZ, the state-of-the-art facility developed with an initial investment of around Rs 1,300 crore. Designed to service up to 300 LEAP engines annually, SAESI facility will employ over 1,000 highly skilled Indian technicians and engineers upon achieving full operational capacity by 2035. The facility will feature advanced process equipment to deliver world-class engine maintenance and repair services.

The MRO facility will be a huge step towards the goal of Aatmanirbharta in the aviation sector. Developing indigenous capabilities in MRO will reduce foreign exchange outflows, create high-value employment, strengthen supply-chain resilience and position India as a global aviation hub. The Government of India is actively working to build a robust MRO ecosystem to support the sector’s rapid growth. Key policy initiatives of the government including GST reforms in 2024, MRO Guidelines 2021, and the National Civil Aviation Policy 2016 have simplified operations for MRO providers by rationalizing tax structures and reducing royalty burdens.


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