The Union government is planning to appoint advisors for kick-starting the process for initial public offer of Air-India and Indian Airlines expected to hit the market later this fiscal.

The government was in the process of appointing advisors for IPO of Air-India and Indian Airlines. The advisors would inform the government on the proportion to be divested of the carriers, Civil Aviation Minister Praful Patel told reporters in Mumbai on Thursday.

Patel said the percentage of the stake to be divested would be determined after the report submitted by the advisors.

"We are also planning routes like employees stock option plan (ESOP) for divesting the stake of carriers to finance fleet acquisition projects," he said.

Patel, speaking on the sidelines of the Indian International Jewellery Show (IIJS) 2005 organised by Gem and Jewellery Export Promotion Council (GJEPC), said that the advisors are expected to submit the report to government and the IPO would take place in this fiscal.

Air-India has already sought expression of interest from prospective advisors and has received 15 applications.

Commenting on the finance ministry's suggestion to review IA's decision to purchase 43 aircraft from Airbus, Patel said, "That was a fair assessment from the ministry and even our ministry is trying to get best possible and sustainable price."

"The finance ministry has asked us to further negotiate with Airbus for a better price deal compared to international deals. We think that was a fair assessment and we are looking for a further decrease in prices," Patel said.

Asked about modernisation of Mumbai and Delhi airports, the civil aviation minister said the final bid document of the joint venture to modernise airports is awaiting the clearance from the law ministry and it is expected to complete within the end of the month.

"The law ministry is vetting the bid documents and we will be able to finalise the terms with the potential bidders for the project by the end of this month," he said.