Options likely for A-I, Indian staff: Patel

The government is planning to give the employees of Air-India (A-I) and Indian stock options when the national carriers, either separately or jointly, go in for an initial public offering (IPO).

"We are going for an IPO, and we are going to give employees stock options," Civil Aviation Minister Praful Patel said in an interview for the BBC show 'Hard Talk'.

Asked whether the government had decided to reduce its role in the functioning of the two carriers, he said: "I think that India's best foot forward is going to be reduced government role - whether it is in the power sector or running airlines or railways. We are conscious of the fact."

He said the UPA government's liberalisation policy in the civil aviation sector has resulted in competition even to the extent that the market share of state-owned carriers has fallen to 30%.

Patel conceded that infrastructure was one of the biggest challenges that the Indian civil aviation sector was up against. "Close to $50 billion investment is coming in the sector in the next 5-7 years, but most of it is in the form of (acquiring) planes. How are we going to fly these planes and how are we going to park these planes. It is absolutely an area of concern," he said.