The government is working to formulate a comprehensive civil aviation policy which includes all aspects of the industry, senior official said Wednesday.

According to Anil Srivastava, joint secretary in the civil aviation ministry, the government has worked upon the first draft of the policy which is under the consideration of stake-holders.

"We have a draft policy which is ready and is under stake-holders' consideration. We have worked upon all aspects like ground handling, regional connectivity, airports and other issues in the policy," Srivastava told IANS on the sidelines of an industry summit organised by the Associated Chambers of Commerce and Industry of India (Assocham) here.

"Discussions are going on with all the stakeholders and soon an effective policy will be in place.

" The summit focused on the ways to improve remote and regional connectivity and the sector which has been at the forefront of economic and regulatory transformation over the last decade.

Assocham said an expected investment of $12.1 billion is required to improve remote and regional connectivity with industrial hubs through establishment of no-frill airports. The Indian aviation sector is set for a quantum leap in the coming years and has the potential to become the world's third largest market by 2020.