Government issues tender to sell helicopter services company for third time, EOI invited by 19 January 2021
The government again issued a tender on Tuesday to sell the helicopter service to the state-owned company Pawan Hans and transfer its management control. Twice before this, the government has failed to make a strategic sale of Pawan Hans. The Department of Investment and Public Asset Management (DIPAM) has issued a Preliminary Information Memorandum (PIM) and invited Expression of Interest (EoI) from 19 January 2021 from potential buyers.
The government has a 51 percent stake in Pawan Hans. The remaining 49 percent stake is held by Oil and Natural Gas Corporation (ONGC). Earlier ONGC also decided to sell its entire stake in the company with the government.
Rohini’s heliport is not part of the proposed transaction
The government had earlier decided to sell its entire equity shareholding in Pawan Hans through strategic disinvestment and management control. The PIM states that Rohini’s heliport will not be part of the proposed transaction and will be separated from Pawan Hans Limited. This heliport is built on the plot allotted to the Ministry of Civil Aviation. The Delhi Development Authority had allotted this plot to the ministry under a perpetual lease.
The buyer cannot remove the employee for 1 year
The government, however, is considering a proposal to give Pawan Hans buyer a heliport to use for 10 years. The PIM also states that the buyer must ensure that he does not remove a single permanent employee for one year after purchasing the company. If the buyer wants to hire an employee within one year after purchasing the company, then he has to make a voluntary retirement offer.
Pawan Hans was founded in October 1985
Pawan Hans was founded in October 1985 as a government company. Its main objective was to provide ONGC exploration activities and helicopter service to the North-Eastern states. As of 31 March 2020, the company had an authorized capital of Rs 560 crore and a paid-up share capital of Rs 557 crore. Bidders can submit their questions on PIM till 22 December.
Pawan Hans reported a loss of Rs 28 crore in 2019-20.
In 2018, the government floated a tender to sell its 51 percent stake. But the ONGC also decided to sell its 49 percent stake with the government if the tender was withdrawn. After this, in 2019, the government tried to sell Pawan Hans, but the process of SAIL failed due to a lack of response from the investors.
