Safran to build Maintenance, Repair & Overhaul facility for Rafale fighter jet engines in Hyderabad

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The announcement comes shortly after Dassault Aviation partnered with Tata Advanced Systems Limited to manufacture Rafale fighter jet fuselages in Hyderabad read more
Rafale fighter jet is seen parked on the tarmac during its induction ceremony at an air force station in Ambala, India, September 10, 2020. File Image/Reuters
French aerospace company Safran Aircraft Systems announced Wednesday (June 25) it will build a maintenance, repair and overhaul (MRO) facility in Hyderabad for the M88 turbofan engines that power Rafale fighter jets.
The new MRO shop will be the first of its kind outside France dedicated to servicing M88 engine modules. It is expected to handle more than 600 modules annually and create up to 150 jobs by 2040, Safran said in a statement.
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The announcement comes shortly after Dassault Aviation partnered with Tata Advanced Systems Limited to manufacture Rafale fighter jet fuselages in Hyderabad. The move is part of India's recently signed Rs 63,887 crore (nearly 7 billion euros) inter-governmental agreement to procure 26 Rafale Marine jets, the naval variant of the aircraft.
The deal includes provisions for setting up domestic production and maintenance infrastructure for engines, sensors, and weapons.
India is set to receive the Rafale-M jets between 2028 and 2030 under the agreement, which aims to deepen defense industrial cooperation between New Delhi and Paris.
India had earlier inducted 36 Rafale jets into its air force in a separate Rs 59,000 crore deal. With the additional 26 aircraft for the navy, the Rafale has emerged as the leading contender in India's long-delayed plan to acquire 114 multirole fighter aircraft through foreign collaboration.
The program, initially estimated at Rs 1.25 lakh crore, is being expedited by the Indian government.
India's vast potential as regional MRO hub
India's potential as a regional MRO hub stems in large part from its strategic geographical location. Positioned between Europe and Southeast Asia, India is ideally situated to serve as a transit and servicing point for aircraft flying between West Asia, Africa, and the Asia-Pacific region. This centrality makes it an attractive option for airlines looking for logistical efficiency in aircraft maintenance without long diversions.
Another core advantage lies in cost competitiveness. Labour costs in India are lower than those in Western countries, and yet the country offers a large pool of highly trained engineers and technicians. This makes high-quality servicing both feasible and economical, especially for global carriers seeking to optimise their MRO budgets.
India's growing aviation sector further strengthens the case for a robust domestic MRO ecosystem. Now the third-largest domestic aviation market in the world, India has more than 750 commercial aircraft in service. This number is expected to double to over 1,500 by the end of the decade. With such rapid fleet expansion, Indian carriers are increasingly in need of local MRO support. Additionally, military aviation needs are also rising, with platforms like the Rafale, C-295, and HAL Tejas Mk1A entering service.
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The Indian government has also taken active steps to make the MRO sector more attractive. It has allowed 100 percent Foreign Direct Investment (FDI) in the segment and reduced the Goods and Services Tax (GST) on MRO services from 18 percent to 5 percent in 2020. Airport operators have been directed to offer land for MRO facilities at concessional rates, and defence offset obligations are now being tied more closely to building MRO capacity within the country.
With inputs from agencies