The requirements for this key transport segment are huge and investments worth Rs 20,000 crore (Rs 200 billion) are expected to flow in this year, Patel said.
The gamut of investments include financing expansion and upgradation of airports and related infrastructure as well as aircraft fleet expansion, he said. Referring to the modernisation of Delhi and Mumbai airports, he said private sector is being involved in the process but "it is not privatisation of key infrastructure."
The government is framing parameters for request for proposals, he said, adding once the criterion are firmed up, the parties would be expected to put in their bids.
Asked about the status of airports in New Mumbai and Chakan in Pune district, Patel said the area for airport location is yet to be freezed and projects would require clearance from the defence ministry.
On the competition among airlines, he said entry of low-cost airlines would provide consumers a choice and bring down fares.
The fleet expansion would happen at rapid pace and almost 100 new planes are expected to be added in next two years, Patel added.