NEW DELHI: The Civil Aviation Ministry is evolving a draft Civil Aviation policy that would increase foreign direct investment ceiling, liberalise bilaterals and move towards an `Open Sky,' encourage the promotion of `Regional Airlines,' lower fares to make aviation affordable and remove price monopolies in respect of Aviation Turbine Fuel (ATF).

The draft policy would be sent to the Union Cabinet for approval, Civil Aviation Secretary Ajay Prasad said here on Wednesday. Another salient feature of the new policy would be the constitution of an Airport Economic Regulatory Authority (AERA) to lay down tariff structures and performance standards and provision of world-class infrastructure by restructuring airports under the Airports Authority of India (AAI).

He was addressing a seminar on challenges in civil aviation, organised by the Foundation for Aviation and Sustainable Tourism (FAST). On the question of treating Persons of Indian Origin (PIO) on a par with Non-Resident Indians (NRI) for investment purposes, he said it would be submitted to the Union Cabinet for consideration.

As both the Delhi and Mumbai airports are congested, the Ministry has taken a number of short-term measures to augment the capacity of both the international airports so that they would be able to handle the increased passenger volume for the next five years. Mr. Prasad said the area of Terminal-1B at the Delhi Airport would be increased from 11,700 sq.m. to 21,000 sq.m., peak hour passenger capacity would be increased from 600 to 1,200 and annual passenger handling capacity would be increased from 1.35 million to 3.5 million.

After taking these short-term measures, he said, the already saturated Terminal 1-B, from where private airlines operate, would meet the average growth of 12 per cent annually up to 2010. Similarly, Terminal-1B at the Mumbai Airport would get an additional building area of 7,000 sq.m., car park capacity would be increased from 600 to 800 spaces and the number of check-in counters would be increased from 45 to 70. Mr. Prasad said the upgraded Terminal-1B at Delhi and Mumbai would be ready by the first week of August.

In two years, the Delhi Airport would get a new runway and high-speed exit taxiways. An international cargo terminal, a new car park, a new terminal access road and a new domestic terminal would be added, Mr. Prasad said.

Replying to a query, he said there was no proposal to construct a new international airport at Noida in U.P. on the outskirts of Delhi. There were plans to upgrade about 25 non-metro airports.

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