The Union Cabinet decided on Friday to refer the Aviation Policy to a group of ministers for wider consultations on several issues including the norms for allowing private carriers to fly abroad.
At the Cabinet meeting chaired by Prime Minister Dr Manmohan Singh, it was felt that several proposals contained in the policy called Vision-2020 needed to be further discussed, official sources said.
The issues also included proposal to hive-off air traffic control from the Airport Authority of India to form a separate company, they said.
There have been differing views among the political circles and the industry on some of the proposals made in Vision-2020.
A section among these circles felt that separation of ATC from the AAI would lead the latter to lose a substantial chunk of its revenues.
They argued that infrastructure currently in place was not conducive for more international operations from the clogged Indian airports.
The GoM would be constituted by the prime minister soon, the sources added.