Govt plans SPV for aircraft manufacturing in India

The government will set up a special purpose vehicle to push ahead with plans to start manufacturing commercial aircraft in India, Civil Aviation Minister K Rammohan Naidu said on Wednesday as he highlighted the potential of the country's fast-growing aviation sector.

The Bhartiya Vayuyan Vidheyak Bill 2024, which was passed by the Lok Sabha in August, includes provisions to regulate the design and manufacturing of aircraft, supporting the Aatmanirbhar Bharat initiative for self-reliance.

"The government is strongly pushing the idea of India manufacturing its own planes," Naidu said, adding that a special purpose vehicle will be set up with industry stakeholders and others.

According to him, efforts are being to ensure that aircraft manufacturing activities can start in the next five years, he said.

"We want to be a big player for manufacturing planes and also export them," Naidu said.

India is a key market for aircraft manufacturers - Boeing and Airbus.

State-owned Hindustan Aeronautics Ltd (HAL) is already into manufacturing small civilian planes but on a smaller scale.

India is one of the world's fastest growing civil aviation markets.

Speaking at a conference organised by industry body PHD Chamber of Commerce and Industry, Naidu also said there is a lot of potential in the country for MRO (maintenance, overhaul and repair) activities.

Noting that the Indian aviation sector is at the "transformative crossroads", the minister also said the aim is to make the country a hub for aviation, air cargo, and MRO activities.

Meanwhile, the Bill seeks to remove redundancies and replace the Aircraft Act, 1934 -- that has been amended 21 times -- at a time when India is one of the fastest growing civil aviation markets in the world.