SINGAPORE, July 20: The centre may dilute its holding in the state-run Air India to 49 per cent, civil aviation secretary MK Kaw has said. The move will be an attempt to make Air India more competitive and efficient.

``In addition, I would like 15-20 per cent of equity to be offered to employees,'' he said. Asked when the disinvestment could be expected to be set in motion, he said that he was waiting for the airline to turn around financially and begin making profits.

``I think it should manage that this fiscal. So, within two to three years -- by when there should be the requisite Rs 325 crore additional capital infusion -- we can start the disinvestment initiative,'' he said.

Kaw said he was in favour of granting more independence to the airline, in terms of both management and purchase decisions, since that was the only way to ensure accountabilty and optimum performance.He said he had consulted some 100 experts, his own officials in the aviation ministry and others, and come to the conclusion that this was the best way out for the airline.

``The Kelkar committee has already made the suggestion for Indian Airlines. But I would like it to be extended to Air India,'' he said.

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