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Odisha Cabinet approves incentive for aircraft MRO facility at Bhubaneswar Airport

Thursday, 14 Aug 2025
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In a significant move to boost regional aviation infrastructure, the Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved the establishment of a world-class aircraft maintenance, repair, and overhaul (MRO) facility at Bhubaneswar’s Biju Patnaik International Airport.

The project, led by AirWorks India (Engineering), will receive an additional incentive package exceeding Rs 80 crore, supplementing benefits under the Industrial Policy Resolution (IPR) 2022. Chief Secretary Manoj Ahuja stated that the facility, the first major MRO in eastern India, is a landmark initiative under the government’s MAAN (Building and Management of Aviation Assets and Network) scheme aimed at transforming Odisha into a regional aviation hub.

The cabinet approved a 50 percent capital investment subsidy—20 percent higher than the 30 percent allowed under IPR 2022, along with coverage of facility rental costs for two years and reimbursement of ESI/EPF contributions for employees. Government sources emphasised the project’s role in attracting investment, creating employment, and enhancing Odisha’s position in the national aviation services market.

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