Hyderabad, Feb 13 (IANS): The Andhra Pradesh government will promote development of non-hub airports across the state under its civil aviation policy announced Tuesday.

The objective of the policy is to encourage the development of civil aviation industry to achieve balanced growth in economy across all the regions of the state, said a statement from the office of the office of Chief Minister N. Kiran Kumar Reddy, who reviewed the new policy with ministers and senior officials.

The proposed non-hub airports will act as centres of economic activity in interior regions. The policy will facilitate the development of allied civil aviation activities such as aviation training; aviation clubs; adventure sports; and maintenance, repair and overhaul (MRO).

It will also attract private sector participation in the development by ensuring economic viability of airports, attract airlines to provide connectivity to airports in the state, create a framework for offering state support and incentives to achieve these objectives, promote helicopter service and heli-tourism through provision of heliports.

"Financing gaps, if any, could be bridged through the viability gap funding scheme from central government, which provides for a capital grant of up to 20 percent of the project cost. In addition, state will provide additional financing for up to 20 percent of project cost," the statement said.

Other incentives from state include municipal tax reimbursements, attractive value added tax/service tax rates, road connectivity to potential location of civil aviation infrastructure, utility connections to the site and single window clearance.

A dedicated cell will be created in the infrastructure and investments department for monitoring the implementation of the policy.

It is also proposed to establish an overseeing board headed by the chief minister for implementation of the policy. The board will have representation from the state cabinet along with the chief secretary and the secretary, infrastructure and investments department, a nominee of ministry of civil aviation.