PM Inaugurates First Global Aircraft Engine MRO Facility in Hyderabad

On 26 November 2025, Prime Minister Narendra Modi inaugurated India’s first global-level aircraft engine Maintenance, Repair, and Overhaul (MRO) facility in Hyderabad. Developed by Safran, a French aerospace giant, the facility — known as Safran Aircraft Engine Services India (SAESI) — marks a significant milestone in India’s aviation sector. The Prime Minister described it as a “new flight” for India’s aerospace ambitions, positioning the country to emerge as a global MRO hub and a preferred destination for aviation investments.

A Major Step Toward Self-Reliant Aviation

SAESI has been established with an initial investment of ₹1,300 crore, located in the GMR Aerospace and Industrial Park – SEZ near Rajiv Gandhi International Airport.

The facility will cater to LEAP engines — the world’s most widely used aircraft engines powering Airbus A320neo and Boeing 737 MAX. This is the first time a global engine OEM has set up deep-level servicing in India.

By 2035, it is expected to,

• Handle up to 300 engine overhauls annually
• Employ over 1,000 highly skilled Indian engineers and technicians

This development will significantly reduce India’s dependence on foreign MRO services, cutting down on costs, turnaround time, and foreign exchange outflows.

India’s Aviation Sector Growing Rapidly

India is now the third-largest domestic aviation market in the world, following the US and China. The sector has seen exponential growth, with over 1,500 new aircraft ordered by Indian airlines in recent years to meet rising demand.

PM Modi highlighted that air travel demand is increasing sharply across the country, driven by economic growth and aspirational mobility.

This rapid expansion calls for robust support infrastructure — particularly in areas like engine maintenance, where India has historically relied on foreign facilities.

Boost to Make in India and Aerospace Ecosystem

The SAESI facility aligns with India’s long-term goal of becoming a global aerospace hub. It directly contributes to the government’s Make in India and Aatmanirbhar Bharat vision.

The Prime Minister emphasized that India is not just attracting investment — it is promoting design, innovation, and co-creation. He urged Safran to consider aircraft engine and component design within India, leveraging the country’s strong MSME network and young talent pool.

He also mentioned that the government is working to expand MRO capabilities in shipping, not just aviation — signaling a broader strategy to build world-class maintenance ecosystems.

Business-Friendly Reforms Encouraging Investment

The facility’s establishment is also a result of India’s ongoing economic and regulatory reforms, which have made it easier to invest and operate in the country.

Key reforms highlighted by the PM include,

• 100% FDI in most sectors via automatic routes
• 74% FDI allowed in the defence sector through automatic approval
• GST rationalization, simplified tax norms, and MRO Guidelines 2021
• Production Linked Incentive (PLI) schemes to promote domestic manufacturing
• Creation of the National Single Window System for business approvals
• Reduction of over 40,000 company compliance burdens in 11 years
• Introduction of faceless tax assessments, new labour codes, and the Insolvency and Bankruptcy Code

These measures have enhanced India’s image as a trusted partner, major market, and a reliable manufacturing destination in the global economy.

Youth Employment and Skill Development

A key benefit of the SAESI project is the potential for large-scale employment generation. Over 1,000 skilled jobs are expected to be created, especially benefiting youth in South India.

Moreover, Safran is expected to offer global training programs and collaborate with Indian institutions to transfer technology and build a world-class aerospace maintenance workforce.

This will empower India’s next generation of aerospace engineers and technicians to compete on a global scale.

India’s MRO Ambitions: Why It Matters

Currently, around 85% of India’s MRO work is done overseas. This costs the country significantly in terms of money, time, and operational efficiency.

By building local capacity, India can,

• Save billions in foreign exchange
• Cut aircraft downtime
• Strengthen supply chain resilience
• Offer competitive MRO services to other nations

SAESI will serve as the foundation for an MRO ecosystem, creating linkages between OEMs, parts suppliers, repair shops, and training institutes.

Static Facts

• Inauguration Date: 26 November 2025
• Location: GMR Aerospace & Industrial Park, Hyderabad
• Investment: ₹1,300 crore
• Engine Type: LEAP engines (Airbus A320neo, Boeing 737 MAX)
• Capacity: 300 engines annually by 2035
• Jobs Expected: 1,000+
• India’s Aviation Rank: 3rd largest domestic market globally