The government is looking to sell 10-20 per cent of its holding in national carriers Air-India and Indian Airlines in their initial public offer, Civil Aviation Minister Praful Patel said on Monday.
"However, the actual figure will depend upon the recommendation of financial consultants who will be appointed shortly," he said at a CII-organised seminar 'Open Skies 2005: Powering Aviation Growth'.
The minister had earlier said the IPOs would come in early 2006.
Despite its size, Air-India has an equity base of just Rs 150 crore (Rs 1.5 billion), while for Indian Airlines it is Rs 105 crore (Rs 1.05 billion), he said. "Not only these two airlines, but all other airlines need to have healthy balance sheets before going for expansion. Therefore, we need to enhance the equity base."
Speaking on the Indian aviation industry, he said it was still a long way from achieving maturity in terms of infrastructure, equity capital and flights.
"Though 60 airports are operational, only 30 are utilised while the remaining are either unutilised or under-utilised. The objective of my ministry is to spread aviation beyond Mumbai and Delhi," Patel said.
"Air traffic in India accounts for 0.5 per cent of our population. This figure can easily grow 10 times," he said.
Responding to queries that airport charges are very high, he said the government is shortly going to constitute an Airport Economic Regulatory Committee to look into the issue.
He said aviation was being accorded top priority by the infrastructure committee headed by the prime minister.
The minister said he would like to see Indian companies diversify and upgrade cargo facilities.