The Odisha government has been paying a monthly rent of Rs 30 lakh to the Airports Authority of India (AAI) for nearly a year for a large hangar at Biju Patnaik International Airport (BPIA) in Bhubaneswar, intended to develop a Maintenance, Repair and Overhaul (MRO) unit. However, the MRO facility is yet to become operational, raising questions about the use of public funds.
Rent Payments and Waiver Request
The AAI charges Rs 1 lakh per day for the hangar, which spans 4,670 square metres. In June last year, the state government signed a pact with AAI to lease the hangar for the MRO project. A private company was roped in to operate the MRO in October, and an agreement was signed in November. According to an AAI officer, if rent is calculated from the month of the agreement with AAI, the total cost from June 2024 to April 2025 amounts to Rs 3 crore. However, since the government sought a rent waiver from June to October 2025, it has paid approximately Rs 2 crore from November 2024 to April 2025. Whether the waiver will be granted is a decision for the AAI board.
Current Situation and Impact
Currently, airlines operating from Bhubaneswar rely on other airports for aircraft maintenance, leading to operational delays and additional costs. The new MRO facility, capable of accommodating large aircraft like the Airbus A321, will be operated by a private entity. Officials believe the operationalisation of the MRO will significantly improve aviation infrastructure in eastern India and generate employment opportunities in the aviation sector.
Airport sources revealed that the apron in front of the MRO and a taxiway will be used to facilitate aircraft movement into the unit. Besides large aircraft, small planes, choppers, and helicopters can also undergo repairs at the MRO, which will run solely under the supervision of the state government. The rent issue is currently being handled between the government's transport department and the AAI.
