New Delhi: The government has announced that the process of privatization of Pawan Hans would now move to the second stage, as it has received multiple expressions of interest for state-owned chopper service.
“Multiple expressions of interest (EoIs) have been received for privatization of Pawan Hans Limited. The transaction will now move to the second stage,” DIPAM Secretary Tuhin Kanta Pandey said in a tweet.
The Department of Public Asset Management (DIPAM) under the Ministry of Finance deals with all the issues related to asset monetisation and disinvestment of the Central PSUs and other public assets held by the Central government.
Pandey, however, did not disclose the number and names of the parties that have evinced interest in acquiring the Mini-Ratna PSU.
In her budget speech, finance minister Nirmala Sitharaman had announced that the privatization of Air India, Pawan Hans Limited will be completed in the next fiscal.
“In spite of COVID-19, we have kept working towards strategic disinvestment. A number of transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others would be completed in 2021-22,” Sitharaman had said in her budget speech early this month.
Pawan Hans Privatization
In December last year, the government had initiated a fresh attempt for strategic disinvestment of Pawan Hans Limited. The Union government holds 51% equity in the company while oil exploration major, the ONGC, owns remaining 49% stake in the company.
As per the information memorandum (IM), a successful bidder will also have the option of acquiring the 49% stake owned by the ONGC.
A Mini-Ratna PSU, Pawan Hans Limited is the largest helicopter service provider in South Asia with a fleet of 43 helicopters.
Pawan Hans is involved in providing helicopter services, heli-tourism, seaplane services, small fixed-wing aircraft services, training and skill development, among other things.
The Mini-Ratna PSU, which was formed in 1985, also provides maintenance, repair and overhaul services (MRO), manages heliports and provides defence services in a joint venture with the state-owned aviation manufacturer HAL.
Who can acquire Pawan Hans
According to the preliminary information memorandum (PIM) issued by the DIPAM, any private or public limited company, limited liability partnership, body corporate, whether registered or incorporated in India or outside, or Alternative Investment Funds (AIF) registered with SEBI can bid to acquire the government stake in the company.
The companies bidding for Pawan Hans Limited must have a minimum net worth of Rs 300 crores.
However, unlike the disinvestment of HPCL which was acquired by another oil PSU – ONGC, this time other Central PSUs are not allowed to bid for Pawan Hans Limited unless it was desirable in public interest.
Pawan Hans Limited posted revenue of Rs 376 crore in the FY 2019-20 and a total loss of Rs 28 crore.
Read: Pawan Hans's first UDAN-RCS service launched in Uttarakhand
