Assam unveils ambitious MRO Policy 2025 to become Northeast’s aviation & defence power hub

Assam has taken a major step toward reshaping its industrial future with the approval of the Maintenance, Repair and Overhaul (MRO) Policy 2025. The policy sets a clear and ambitious target: to make Assam the leading aviation servicing hub of the Northeast by 2030, while also positioning the state as an emerging centre for India’s defence and aerospace ecosystem.

According to the state government, the new MRO policy lays down a comprehensive plan to attract large investments, build world-class aviation facilities, and create a skilled workforce suited for modern aerospace needs. The government expects an estimated investment flow of around ₹1,500 crore in the coming years, alongside the creation of more than 1,000 specialised jobs. Officials say this will help the state build deeper capabilities in maintenance, repair and overhaul services for both civil and defence aircraft.

The policy outlines the establishment of three modern MRO facilities across strategic locations in Assam. These centres will be designed to service aircraft, engines, avionics, UAVs and other critical components, following global standards. The government believes that having these facilities within the state will help reduce turnaround time for aircraft operating in the Northeast and cut down on the high costs associated with sending aircraft outside the region for servicing.

To attract top aviation companies and global operators, Assam has announced a wide range of financial incentives. The package includes a 25% capital subsidy of up to ₹100 crore per unit, 75% lease rental reimbursement for the first three years, and a one-time employment incentive—₹50,000 for women and transgender employees and ₹30,000 for male employees. The state will also offer a power subsidy of ₹2 per unit and a 2% interest subsidy on working capital loans for up to five years.

For companies looking to export services, the policy provides a 2% export revenue incentive for five years. A strong push has also been made toward skill development, with support of up to ₹1.5 lakh per trainee. Aviation engineering institutions promoted by MRO investors will receive additional benefits to help close the skill gap in the sector.

The policy carries an overall financial outlay of ₹1,458 crore over the next five years. The government believes this investment will lay the foundation for a long-term industrial shift in Assam, creating an aviation-focused ecosystem capable of supporting civil, commercial and defence requirements. Officials say the policy will draw major manufacturers, global service providers and defence-linked industries to the region, helping Assam emerge as a key military-industrial corridor in eastern India.

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