Sudan upgrading air bases in volatile border region -monitor
* Sudan foreign ministry dismisses the report
* Satellite group says images show new helipads in Blue Nile
* Violence has erupted on both sides of the border this year
JUBA/KHARTOUM, Nov 11 (Reuters) - Sudan's military is repairing and improving air bases in its Blue Nile state, potentially helping it step up air strikes in the conflict-stricken region along the border with South Sudan, a satellite monitoring group said on Friday.
Sudan's foreign ministry dismissed the report, saying it was aimed at bolstering international sympathy for armed rebel groups and that the country's use of military airpower was appropriate and discriminate.
Violence around the poorly-defined border has heightened tensions between Sudan and South Sudan since the south declared independence in July. Analysts say the conflict threatens to drag the two old civil war foes into a proxy war.
The Yida refugee camp in Unity state was bombed on Thursday, less than 25 kilometres (15 miles) from the border with Sudan. South Sudan accused Sudan of carrying out the attack and the United States condemned it. Sudan denied the charge.
The Satellite Sentinel Project said it captured images that appeared to show "active enhancement" of two air bases seized from rebels in Kurmuk on Nov. 2, including what appeared to be four new helicopter landing pads built in the past week.
"These helipads will allow SAF (Sudanese Armed Forces) to base helicopter gunships and transport helicopters needed for the transport of air assault infantry near the border with South Sudan," the report said. Continued...
