Bhubaneswar, Feb. 26: The Biju Patnaik International airport will have a cargo terminal within a year to enhance business opportunities for entrepreneurs and exporters.

The state government which earns around Rs 150 crore as sales tax every year, will be able to pocket twice the amount from cargo handling activities.

The state government has assured the Airports Authority of India (AAI) to deploy one sales tax officer at the airport with immediate effect to make cargo handling easier.

Airport director Sharad Kumar told The Telegraph: "The state government has evinced interest in increasing air cargo from the city airport as commodities such as betel leaves, handicrafts, seafood, handloom and saris can be sent at a lower cost through air cargo.''

Kumar said: "Betel leaves from Odisha have a huge demand outside the state, but people are dependent on the supply by train. The same goods can be sent through air at affordable prices and with the least chance of those getting damaged in transit.''

Senior officials of the AAI, including Calcutta-based joint-general manager, cargo, Girish Sharma, chairman Industrial Promotion and Investment Corporation of Odisha Limited (Ipicol) Sanjiv Chopra and the airport director met on Wednesday to decide on the modalities to make the proposed terminal a reality within a year.

Ipicol chief Chopra said: "It will open a huge potential for entrepreneurs dealing in food processing and perishable items such as flowers and betel leaves.''

Sources said the new cargo terminal would be constructed near the AAI director's office at the airport.

The facility will help the three airlines - Indigo, Air India and GoAir - handle cargo operations in a much better manner.

Eminent sculptor Sudarsan Sahoo, who also exports statues and stone carvings to foreign countries, said: "Once the international operation starts from the city airport, the export business will definitely see a quantum leap. Though the declaration about the international status to the city airport was made on October 30, 2013, international flights are yet to take-off from here.''

Tour operator Srikant Mishra said: "Apart from the development of the cargo terminal, both the state government and the Centre should try to link the Biju Patnaik International Airport to international flight operations so that simultaneously the tourism sector will help in the growth of the local air cargo potential.''