Government to sell its 51 per cent stake in Pawan Hans, transfer control

NEW DELHI: The government will sell its entire 51% stake and transfer the management control of the helicopter service operator Pawan Hans Ltd to a strategic buyer.

The company is a joint venture where state-owned ONGC Ltd. holds 49% stake. The government has budgeted for Rs 56,500 crore of revenue from disinvestment this fiscal, including Rs 20,500 crore from strategic sales.

In a notification for engagement of an advisor for strategic disinvestment, department of investment and public asset management (DIPAM) said that the government has ‘in-principle’ decided to disinvest 100% of its shareholding in Pawan Hans Ltd. through a strategic sale with transfer of management control.

“We are open if ONGC Ltd. is ready to buy out the firm,” said a finance ministry official requesting not to be named. “This may spill on to the next fiscal, as arriving at valuations and finding the right buyer may take time,” he added.

Set up in 1985, Pawan Hans currently has a fleet of 46 helicopters. The company reported a net profit of Rs 38.8 crore in FY15. It was incorporated with the primary objective of providing helicopter support services to the oil sector for offshore exploration operations, services in remote and hilly areas as well as for charter services.