Modi unveils Safran’s Hyderabad engine MRO, says India now a global co-creator for investors

Prime Minister Narendra Modi on Wednesday said India is emerging as a trusted global investment partner as he launched French aerospace major Safran’s Aircraft Engine Services India (SAESI) facility in Hyderabad.

Modi virtually inaugurated the Maintenance, Repair and Overhaul (MRO) centre for LEAP engines used in commercial aircraft and said the project would expand opportunities for young skilled workers in the country.

Highlighting the reforms undertaken in recent years, Modi said India has decriminalised hundreds of business-related provisions and brought numerous approvals onto a single platform through the National Single Window System. He said GST reforms, faceless tax assessment, new labour codes and the insolvency and bankruptcy code have made governance “simpler and more transparent than ever before”.

“Because of these efforts, India is now seen as a trusted partner, a major market, and a rising manufacturing hub. India today has rapid growth, a stable government, a reform-oriented mindset, a vast young talent pool, and a large domestic market. And most importantly, for those investing in India, the country considers them not merely as investors but as co-creators, stakeholders in the journey of Viksit Bharat,” he said.

Modi said India’s aviation sector has taken a “huge leap” and today represents one of the fastest-growing domestic aviation markets globally, with the domestic market now the third largest in the world. The growing aspirations of Indians, he said, have driven sustained demand for air travel, prompting domestic carriers to expand their active fleet. India’s airline companies have ordered more than 1,500 new aircraft, he added.

With rapid expansion, the Prime Minister said the need for strong MRO capacity has also grown. Nearly 85 percent of India’s MRO work has been taking place overseas, leading to higher costs, longer turnaround times and prolonged aircraft grounding. “Such a situation was not suitable for a vast aviation market like India. Therefore, the Government of India is developing the nation as one of the world’s major MRO hubs,” he said.

Referring to the Safran facility, Modi said that for the first time, a global original equipment manufacturer is establishing a deep-level servicing centre in India. He added that Safran’s global training, knowledge transfer and partnerships with Indian institutions would create a skilled workforce that will shape the MRO ecosystem in the coming years. He said the Hyderabad facility would create many opportunities for the youth of South India.

“And we do not just want to be limited to aviation MRO. We are also working on a very large scale on the MRO ecosystem related to shipping. In addition, we are also promoting design in India on a large scale,” he said.

Modi said he would like Safran to leverage India’s talent and opportunities in propulsion design and manufacturing, adding that India is not just “dreaming big” but also taking major decisions and achieving “even bigger achievements”. He said India opened its economy, strengthened its fundamentals and made business easier. “In addition, today 100 per cent FDI is possible in most sectors. In sectors such as defense, where there was no place for the private sector earlier, 74 per cent FDI has been opened automatically. There is also a lot of progress in the space sector,” he said.

According to a release from the Prime Minister’s Office, the SAESI facility will become operational in 2026 and will be a major boost for indigenous capabilities in the fast-growing aviation sector. The centre is being set up with an initial investment of Rs 1,300 crore for the LEAP (Leading Edge Aviation Propulsion) engines that power narrow-body Airbus A320neo and Boeing 737 MAX aircraft. LEAP engines are manufactured by CFM International, a joint venture between Safran Aircraft Engines and GE Aerospace.

Designed to service up to 300 LEAP engines annually, the facility will employ over 1,000 highly skilled Indian technicians and engineers by 2035, according to the release issued on Tuesday. It added that building indigenous MRO capabilities would reduce foreign exchange outflows, create high-value jobs, strengthen supply-chain resilience and help position India as a global aviation hub.

(With inputs from agencies)