Such a decision would also enable AAI to form joint ventures with private companies to modernise airports and aviation infrastructure across the country, sources in the civil aviation ministry said.

At present, the profit-making public sector company needs government nod to undertake projects more than Rs 150 crore (Rs 1.5 billion). After getting the mini-ratna status, AAI would be able to take up projects worth up to Rs 500 crore, they said.

AAI, before being granted the status, would have to approach the department of public enterprises to seek waiver of loans from the government so that it became "self-reliant", they said. At present, AAI is given budgetary allocation for maintaining airports in the Northeast.

The sources said government is also planning to do away with the rule of not having another airport within a radius of 150 kilometres in a metro, saying that more airports were required for creating enough aviation infrastructure.

This would mean more than one airport in metropolitan city. The Uttar Pradesh Government has already proposed setting up of an airport in Greater Noida but it has been opposed by GMR, which is modernising the Indira Gandhi International Airport in the national capital.