INDIA's Civil Aviation Ministry is considering a proposal to develop airports exclusively for air cargo operations, in a bid to inject new life into airfreight, which is failing to keep up with the double-digit growth in the passenger sector.

Government officials hope their plan to build cargo airports at major locations or business centres will attract substantial private investment, including foreign investment, according to India's Economic Times.

Such a move would call for special facilities to handle, for example, perishable goods and store cold chain products. Separate facilities would be devoted to durables and non-perishable commodities. An automated data clearance system would also be developed to increase air cargo processing efficiency.

The proposal is already said to be drawing interest from a number of companies who are keen to provide dedicated air cargo services.

This comes after Civil Aviation Ministry recently increased the foreign direct investment limit in the air cargo segment to 74 per cent, up from 49 per cent. In the construction of greenfield airports, 100 per cent FDI is permitted. The government is also looking to allow foreign airlines to take minority stakes in domestic dedicated cargo carriers.