The Ministry of Civil Aviation is all set to propose the central government to scrap the clause that is not allowing a new airport within 150 km of an existing airport.

The clause in the current Airport Policy says that if the government were to allow construction of a greenfield airport within the radius of 150 km then either approval of the existing airport operator be taken, or it be given the right of first refusal to its builder.

The move will have an impact on the Uttar Pradesh airport project. There has been an old proposal by the Uttar Pradesh government to build an international airport in Greater Noida, which could not take off because of this restraining clause. If it is scrapped, the state government will be free to go ahead and build the airport without either seeking the consent of GMR or giving it the right to build the airport.

However, the change in the policy will not have any immediate, major impact in cities like Hyderabad and Bangalore. The Hyderabad's Begumpet airport infrastructure is lying unused since the coming up of the new airport because of this restraining clause.