Tuesday, May 23 2006 14:41 Hrs (IST) - World Time -

New Delhi: The Government is planning to give employees of Air-India and Indian airlines stock options when the national carriers, either separately or jointly, go in for the initial public offer.

"We are going for the initial public offer and we are going to give employees stock option," Civil Aviation Minister Praful Patel said in an interview to the BBC's 'Hard Talk' programme.

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 power sector or running airlines or railways. We are conscious to the fact."

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

Patel conceded that infrastructure was one of the biggest challenges that the Indian civil aviation sector was up against.

"Close to 50 billion dollars 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. The minister said the government has taken several steps to address the infrastructures crunch as India had alreadyfallen way behind its Asian rival China.

"We want to leap frog in a very short time. For the first time we have a committee on infrastructure headed by the Prime Minister himself," Patel said.

He said his Ministry had emphasised on distributing air traffic to ease pressure on infrastructure of major airports like Delhi and Mumbai.

"Delhi and Mumbai accounted for 75 per cent of all aviation activities till about two years ago. It has come down to about 55 per cent now and that's the emphasis we are making. As we redistribute the traffic across 80 more airports, there will be lesser pressure on Delhi and Mumbai," the Civil Aviation Minister said.

He said the redistribution of the air traffic will also result on more expansion in other areas.

Patel said in the last two years of the UPA Government, liberal air traffic arrangements have been made many countries, which has resulted in more flights operating in and out of the country.