PM backs investment reforms as Safran opens Rs 1,300-cr engine unit

Prime Minister Narendra Modi on Wednesday positioned India as a dependable and forward-looking investment destination as he virtually launched Safran’s new maintenance, repair and overhaul facility for LEAP aircraft engines in Hyderabad.

Using the inauguration to highlight the country’s reforms, he said investors today were treated not just as financiers but as partners in the country’s long-term growth.

Modi said India’s governance and economic framework had been reshaped through measures such as faceless tax systems, GST reforms, updated labour codes and a more transparent insolvency regime. He noted that these steps had strengthened confidence among foreign firms, which now viewed India as a place offering steady growth, young talent and a large domestic market.

Modi said the country now considered every major investor a collaborator in its goal of becoming a developed nation. He said the aviation sector had expanded at an unprecedented pace, making the domestic market the world’s third largest.

With rising incomes and higher demand for air travel, he pointed out that Indian airlines had placed orders for more than 1,500 new aircraft. The need for robust engine-servicing facilities, he said, had, therefore, become urgent.

The newly launched Safran Aircraft Engine Services India (SAESI) facility, built with an initial investment of Rs 1,300 crore, will service LEAP (Leading Edge Aviation Propulsion) engines that power Airbus A320neo and Boeing 737 MAX aircraft. These engines are manufactured by CFM International, a joint venture between Safran Aircraft Engines and GE Aerospace. The Prime Minister’s Office said the Hyderabad facility would become operational in 2026 and was expected to significantly strengthen the country’s strategic aviation capability.

The PMO said the plant had been designed to handle 300 overhauls every year and was expected to employ more than 1,000 highly skilled workers by 2035. Officials said the project would reduce the long-standing dependence on foreign MRO centres, lower costs for carriers and position India as a competitive global hub for engine servicing.

Modi said nearly 85 per cent of India’s MRO work was currently done abroad, leading to higher expenses and long grounding periods for aircraft. He stressed that this situation did not suit a rapidly growing market like India. Calling Safran’s arrival a major turning point, he said the facility marks the first instance of a global engine manufacturer setting up deep-level servicing operations in the country.

He said that advanced training collaborations between Safran and Indian institutions would help create a new generation of aviation engineers and open up job opportunities, particularly in south India.

The PM also said India intends to build MRO strength not only in aviation, but also in shipping and design-led sectors. He urged Safran to draw more deeply on India’s talent pool for advanced propulsion and manufacturing work, noting that the country had opened its economy further and now permitted 100 per cent FDI in most sectors.

Civil Aviation Minister K Ram Mohan Naidu said India was steadily positioning itself as a global hub for aircraft maintenance, repair and overhaul, backed by ongoing policy reforms, deeper collaboration with industry and a growing pool of skilled professionals.

Safran CEO Olivier Andries said the company planned to scale up its presence significantly in India. He said Safran was prepared to establish a final assembly line for Rafale engines and critical equipment if the Indian Air Force placed additional orders, noting that such a facility would be the first outside France. Safran provides M88 engines that are used in Rafale jets, along with landing gear and several essential onboard systems.

The company also began construction of a dedicated M88 engine overhaul facility in Hyderabad. Spread over 5,000 square metres and valued at more than 40 million euros, the unit will service over 600 engine modules annually and employ around 150 people. Safran said it aimed to increase sourcing from India to 500 million euros by 2030 and triple its revenue from the country to more than 3 billion euros.