The government is expected to firm up, next week, its position on equity participation in two proposed companies for privatisation and modernisation of Delhi and Mumbai airports, official sources said on Friday.

The companies would be set up with initial equal equity participation from Airports Authority of India to develop the two metro airports as principal hubs of international travel.

Sources said the government would clarify the extent to which the stake of these two companies would be given to private parties in the joint ventures. "It could be 24 per cent or more and the management could be leased out on completion of the projects," they said.

In order to amend the AAI Act to pave the way for modernisation of the airports, a Bill is likely to be tabled in Parliament in the on-going session itself.

The legislation includes a proposal for restructuring of airports through the joint venture route, in addition to the leasing route, which is also being considered.

A proposal to create an Airport Development Fund under AAI had been included in the Bill, which was revised and given final shape recently.

The government has already cleared the renovation and modernisation of the Delhi and Mumbai airports, along with two seaports, at an estimated cost of Rs 11,000 crore (Rs 110 billion).

It has also granted in-principle approval for construction of greenfield airports through joint ventures under private sector participation at Hyderabad, Bangalore and Goa.

On the decision to carry out ground handling at all Indian airports by Air-India, Indian Airlines and AAI, the sources said while the two carriers were already providing these services to foreign airlines, domestic private carriers - Jet Airways and Air Sahara - have sought government's permission to handle their own flights.

However, the government is yet to take a decision on the private airlines' request, they added.

Ground handling is generally carried out at most international airports by domestic state-owned agencies like Dnata in Dubai, British Airways at Heathrow and Charles de Gaulle Airport Company at Paris.