The Indian government is considering a proposal by Air India to give out some of its equity capital as shares to the airline's employees to encourage their participation in running India's national carrier.

"As of now, there is no decision on the proposal by the NACIL, which runs Air India. It is aimed at encouraging the employees participation in running the national carrier. The percentage of the capital share and other details would be announced later," Civil Aviation Secretary Ashok Chawla told reporters at a seminar named "Fast Growing Civil Aviation: Managing Safety".

The government is likely to issue up to 5 percent of National Aviation Company India Ltd's (NACIL) equity capital as shares to employees.

When asked whether the national carrier would be privatized, Chawla said, "the government has not yet taken a decision on this."