N. Chandrababu Naidu Cabinet approved the Andhra Pradesh Civil Aviation Policy, which provides creation of a regional airport development fund and project-specific special purpose vehicles.

The airport policy seeks to improve air connectivity with the state, promote civil aviation infrastructure and transform AP as a preferred destination for investment in aviation and allied businesses by creating airports as hubs of economic activity.

It also provides for underwriting specific number of airline seats or certain percentage of the capacity as assessed by the government to encourage more flights.

AP has only one international airport, Visakhapatnam, and plans are to set up four modern international airports by 2022.

Under the policy, it is proposed to set up AP regional airport development fund to provide financial support for regional airports with an initial corpus of Rs 100 crore, and backed by budgetary support.