National air-carrier Air India on Tuesday ruled out raising money through an initial public offer this year and said it will approach the Government for infusing more money to strengthen its equity base.

"We will not be going for our IPO this year," Air India's newly-appointed Chairman and Managing Director Raghu Menon told reporters in Mumbai.

The air-carrier would instead seek capital infusion from the Government, he said. "We will like the Government to provide equity to us. It (the government) has done it in the past for certain companies... it depends on what case we build up," Menon said.

Air India would build up a well-considered case before approaching the Government on the matter, he said, adding, "I would like to approach the government for further infusion of equity in our company, because of the huge borrowings that we have taken to purchase new aircraft."

On the IPO, Menon said he has "really not gone into this IPO issue." However, Air India was looking at employee stock options (ESOPs) and this scheme should be ready in over next six months, he said.

"This is something we will like to work out very quickly -- maybe over the next six months. We already have some people in place who are working on it," he said.