The Airports Authority of India (AAI) on Friday said it is constructing a new terminal building at Leh airport that will be able to handle 20 lakh passengers annually.

The existing terminal capacity lets the airport handle more than nine lakh passengers per annum, the AAI said in a press release.

"To meet out the traffic growth and growing demand, construction of a state-of-the-art new terminal building with modern facilities is underway at a cost of Rs 480 crore," it stated.

The new terminal's construction work will be finished by December 2022 and it will be able to handle 20 lakh passengers annually, the AAI noted.

The Kushok Bakula Rinpoche Airport in Leh is situated at a height of 3,256 metre above average sea level.

"The design of the building will reflect the philosophy of ancient Buddhist wisdom intertwined with a modern ethos and closely incorporate Buddhist design elements in the overall look and feel of the building," the AAI stated.

Leh attracts a large inflow of tourists both from home and abroad.