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MIHAN and NAGPUR property - NAGPUR Boooooming
siddhant vijay
Author:siddhant vijay
professional real estate advisor at Nagpur, Maharashtra.
MRO at NAGPUR
Wednesday 04th, June 2008
The maintenance repair and overhaul (MRO) unit will be a partnership with Air India to form a greenfield venture. We will be coming up with the best of resources and are also original equipment manufacturers of the aircraft. The facility is expected to attract clients from the world over. The facility will have a large scope of employing locallytrained Indians rather than expatriates. We will have to keep the costs low in order to be globally competitive. As a result, a majority of locals will have to be employed in order to maintain overheads on account of payments. Although it would open new vistas for candidates trained in Nagpur or the region, the jobs would be open for any other qualified person. I have been also talking with my alma mater, the VNIT, for providing inputs on manpower requirement. However, one must keep in mind that in this set-up, Boeing would be needing highly qualified personnel. It is not like a multinational company opening a fast food joint. At the same time, it will not be engineers alone that would be required in the MRO. There will be vacancies for other employees to cater to needs like general management, information technology and so on. As far the airlines in the country are concerned, it is a win-win situation indeed. The airliners will no longer have to send its pilots to long distance destinations abroad, thereby saving fuel and time. As far as Nagpur is concerned, one of the major advantages is the second runway projected in the master plan. As work increases, the MRO may need a second runway. We would initially start with catering to the Boeing 737 and would later follow with advanced aircraft like 777 and so on. The work on the cargo hub project also seems to be going on the right direction. I was here less than five weeks ago and could see a lot of facilities such has trains and road and other progress being under way. (The author, who studied in Nagpur, is the senior vicepresident (sales) of Boeing and in-charge of the MRO project) The Aircraft Giant’s Proposed MRO Unit Holds Much Promise For Mihan Promoters As Well As Other Investors Ramu Bhagwat and Shishir Arya | TNN This is among the biggest greenfield investments proposed in the city that may help the region’s economy. Two years ago, civil aviation minister Praful Patel announced aircraft maker Boeing Inc.’s plans for investing $ 100 million in Nagpur by setting up an aircraft maintenance repair and overhaul depot here. That Nagpur-grown Dinesh Keskar, the senior vicepresident (sales) of this mammoth company is in-charge of the project, brought further cheers. The project would be a joint venture between the national carrier Air India and Boeing. The move led businessmen, realtors and investors to redraw their plans in the light of Boeing investment in the Mihan project. To be honest, Mihan which was also shrouded in uncertainty, got a big boost with the announcement. But two years after the initial euphoria, the Boeing MRO is yet to take off from the planning stage. There were hiccups and apprehensions that Boeing may decide to set the MRO somewhere else, but it was announced at last that “Nagpur is the destination of choice.” Thanks to a rider with $11.63 billion aircraft deal between Air India and Boeing, the city also got a good bargain. It was one of the stipulations for Boeing that it had to set up such a facility anywhere in India, if it wanted the order. “There is nothing to worry. The project is on. We are fulfilling various requirements before starting the actual work,” Keskar told ToI The MRO would activate a whole gamut of economic activity, provide jobs to local engineers and also cut the maintenance cost for airliners. It would reduce the flying distance for Boeing planes operating in India. As the repairs will be done at home, it will save on airlines’ time, fuel and man days for the mandatory overhaul of aircraft. The final agreement between Boeing and Maharahstra Airport Development Company (MADC) is yet to be signed. A deal has to be signed with MADC since this company is setting up the special economic zone (SEZ) where Boeing has been allotted land. Interestingly, the land has been offered at concessional rate given the huge investment it would bring in. There has been a series of parleys between the MADC and Boeing so far. When contacted, MADC’s chairman-cum-managing director R C Sinha said, “Boeing are now conducting a due diligence over the land. The company has several departments and each is examining various issues.” Keskar, on the other hand, avoided to comment directly on the time-frame for the signing of the deal. He said work on testing the soil conditions is under way at the site. “The land has been already earmarked in the area, and teams are testing the soil conditions and other requirements for setting up the MRO,” he said. Soil condition is one of the major criterion for such a set-up. A Boeing 747 weighs several tonnes and there is always a risk of the ground sinking due to its weight. There are also apprehensions that an ongoing political ego tussle may be one of the reasons for the delay. However, Keskar stressed that Nagpur has been chosen on its merit which includes factors like dry weather conditions, the SEZ status and the attached Mihan project. A BOON FOR THE REGION The deal may not be sealed yet, but the proposed Boeing MRO unit is generating a lot of excitement 100 Million dollars expected to be invested in the city by aircraft major Boeing Inc for setting up the MRO unit 75 Acres have been allotted to Boeing by Maharashtra Airport Development Company HOW MRO WILL HELP The MRO provide jobs to local engineers The set-up will also cut the maintenance cost for airliners It would reduce flying distance for Boeing planes operating in India Maintenance, repair, overhaul?! Aircraft maintenance sector is poised for a big leap in the coming years as Indian aviation companies realise the need for scheduled maintenance instead of only short-term emergency repairs, which was the norm in the past. The airline companies have realised that unless aircraft are overhauled periodically, their age reduces and they are more prone to technical snags. An aircraft goes through the ‘A’ check about once a month and a ‘C’ check after every one-and-half year. ‘C’ check involves a thorough inspection of the aircraft structure with system tests. The general overhaul of aircraft, known as ‘D’ check, is done once in five to ten years depending upon the age and flying hours. This exercise takes months for completion for a large aircraft like Boeing 747. The ‘C’ and ‘D’ checks are done in a maintenance repair and overhaul (MRO) depot. A ‘C’ check costs around Rs 2 crore for Boeing 737. The figure for Boeing 747 can go up to Rs 6 crore. The state-run airlines Indian has workshops in Mumbai and Delhi for carrying out ‘C’ checks. However, due to capacity constraints, aircraft have to be often sent to Korea and Germany for major engine repairs. Indian has placed orders for large number of aircraft with Boeing. As a part of the deal, the aircraft manufacturer has decided to set up a MRO depot in the country. The facility entails an investment of over Rs 400 crore. Many private airlines have also placed orders with Boeing for new aircraft. These aircraft will also be repaired and overhauled in the Nagpur MRO.
 
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