New Delhi, Dec 24 (IANS): The government Wednesday approved transfer of 278 hectares of land bank in possession with the Indian Air Force to the Airports Authority of India (AAI) for the development of Nagpur airport.

The land transfer was made possible after the state government decided to give 400 hectares to the IAF on a barter basis.

"This (exchange) has been found appropriate by IAF as additional land for extension of runway is required for its Gajraj project," an official statement said after a meeting of the union cabinet here which took the decision in this respect.

The statement said the 278 hectares of land in possession with IAF restricted development of the Gajraj project, as it was located in five different pockets.

"IAF needed a single plot of land for expansion of the runway and development of Gajraj project. At the same time, the IAF land falling in the Mihan (Nagpur) airport boundary is required for the development of the Mihan project," the statement further said.

An additional land bank of 122 hectares has been offered by the state government to IAF to meet the cost of existing assets which cannot be relocated.