New Delhi: The government on Thursday in-principle approved a $1.7 billion (Rs 8,000 crore) plans to upgrade 35 non-metro airports across the country to meet the growing rush of air travellers.While the airport infrastructure in these cities would be modernised entirely by Airports Authority of India ,the government has decided to involve the private sector in upgrading city-side facilities like hotels,restaurants and car parking.  

"Prime Minister's Infrastructure Committee on Thursday approved the modernisation of 35 non-metro airports on an urgent basis.Private equity in the city-side development at these airports has been capped at 74% with an FDI limit of 49%.The remaining 24% will be held by AAI,"civil avaition minister Praful Patel said.

       "But the air-side infrastructure,which includes passenger terminals,tarmac and apron area,will be upgraded by AAI using its internal accruals,"he added.While the states have also been urged to provide viability gap funding,Patel said,any shortfall in funds would be met through market borrowings."We expect the upgrade of these 35 airports to cost around Rs 8,000 crore."

       The minister said work was likely to begin next year and be completed by 2009 in three phases.Among the airports to be upgraded are those in Goa,Jaipur,Amritsar,Agra and Patna.

       The development of airport infrastructure in Northeastern states would also be taken up on priority,he said."The prime Minister is keen that airports in the region are taken up on a priority basis,"Patel said.            

       Patel also stated that the draft Civil Avaition Policy is ready and could be taken up by the Union Cabinet for approval this month itself."Comments on the policy from all ministers concerned and agencies have already been received.We expect it to be taken to the Cabinet this month,"he said

       A bill to establish an Airport Economic Regulatory Authority was also ready.It could be taken up by the Cabinet this month and was likely to be tabled in Parliament in the coming Monsoon session,he added.