Srinagar, Oct 8 (IANS): In a significant decision, the Administrative Council (AC) which met under the chairmanship of Jammu and Kashmir Lieutenant Governor Manoj Sinha, gave nod to transfer of state land at village Rakh Raipur, in Jammu, in the favour of Airport Authority of India (AAI) free of cost for establishment of new terminal at Jammu Airport, officials said on Friday.

The establishment of the new terminal will significantly enhance the capacity of the Jammu Airport in handling air traffic which will boost tourism, economy and generate employment opportunities.

"The decision comes in line with the policy of the Government to promote the growth of Indian aviation sector in a significant manner so as to ensure a multiplier effect on the economy," an official statement said.

"The government aims to provide an ecosystem for harmonised growth of various aviation sub-sectors, including Airlines, Airports, Cargo, Maintenance Repairs and Overhaul services (MRO), General Aviation, Aerospace Manufacturing and Skill Development."