IAF to outsource some MRO facilities to industry for the first time

For the first time, the Indian Air Force (IAF) is moving ahead with a plan to outsource some of its maintenance and overhaul facilities to the indigenous industry. This would include incubating private players to impart the know-how on managing back shops and offering aircraft body paint shop infrastructure at one of its Base Repair Depots (BRD) to reduce dependence on foreign equipment manufacturers (OEMs).

The steps IAF has initiated to handhold the industry are designed to make the country self-reliant and tap into the global Maintenance, Repair and Overhaul (MRO) business which was worth $49.1 billion in 2023 and is projected to reach $66.2 billion by 2030.

The Indian MRO industry was $1.7 billion in 2021 and the market is expected to grow to $4 billion by 2031, as per a NITI Aayog report of October 2022.

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Speaking exclusively to businessline, Air Marshal CR Mohan, Air Officer-in-Charge Maintenance of the IAF, said: “We are looking at partnering with the Indian industry in an interesting way. Wherever it’s combat sensitive and, we need it, we will do it on our own. Wherever, it’s not combat sensitive, we can partner with the industry.”

The IAF has identified different levels of engagements for outsourcing the MRO facility. Air Marshal Mohan said it signals coming together of the armed forces and the Indian industry.

The industry is not very enthusiastic in doing the military maintenance and overhaul services independently because volumes are less, the variety is high and then there are certification overheads, he pointed out.

To fill that void, the IAF has chipped in with its core competence to the stakeholders in the market. “We have the technology. We have the facilities. We can initially start by augmenting capacity, by incubating the industry in our system where we already have the technology,” the Air Officer-in-Charge Maintenance stated.

While the industry can use the outsourcing opportunities to do the civilian MRO business, they will have to do the IAF job on a suitable commercial arrangement when required.

Approximately 80 cases of outsourcing certain MRO facilities of the IAF are at various stages of approvals since the process began in 2022, the Air Marshal stated.

Last year, the IAF floated Request for Information (RFI) to dual purpose its heavy aircraft maintenance facilities at Hindon Air Base in Ghaziabad which can help private airlines to get their aircrafts repainted here rather than flying abroad for availing that MRO facility.

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“Eleven industries have already come forward, shown interest and we have managed to get some responses from them to move our case. We are now in the process of issuing Request For Proposals (RFPs). In next four to six months, we should be in a position to hand over the contract,” Mohan elaborated.

The successful bidder can earn money out of it and provide those services to the IAF with suitable commercial arrangements to paint aircraft and helicopters, he said.

He, however, stressed that it is not a revenue generating model but the IAF is hoping to benefit monetarily due to the cost advantage for indigenous partners.

RFPs were also floated for industry engagement for maintenance and overhaul of six cases of Mi 17 series helicopters, two cases of MiG29 fighter jets and one case of AN32 transport aircraft. These cases are at various stages from tendering to TEC approvals.

All RFPs are for incubating Indian industries for repair and overhaul, refurbishment and replacement of sub components, he said.

According to the IAF officer, the incubation programme has already gone ahead. For instance, “9 BRD” at Pune has signed contracts, he specified.

The low hanging fruit the IAF is immediately ready to offer are maintenance of ground equipment such as different varieties of trolleys, and managing supply chain.