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Aviation Ministry May Submit Plan For Pawan Hans Stake Sale In A Week

Government plans to divest entire 51 percent stake in Pawan Hans this financial year.

Models of Airbus SE helicopters stand on display at the company’s booth during the Aero India air show at Air Force Station Yelahanka in Bengaluru.
Models of Airbus SE helicopters stand on display at the company’s booth during the Aero India air show at Air Force Station Yelahanka in Bengaluru.

The aviation ministry plans to submit final details of its proposed stake sale in Pawan Hans to the Department of Investment and Public Asset Management in a week, said two senior ministry officials.

The government is looking to divest its entire 51 percent holding in the state-run helicopter carrier by the end of the current financial year, while Oil and Natural Gas Ltd. is likely to retain the remaining 49 percent stake.

Civil Aviation Minister Ashok Gajapathi Raju and officials from the ministry met counterparts at DIPAM to discuss the divestment process on Wednesday. The government is considering all possible options for the stake sale, the officials quoted above told reporters in New Delhi after the meet on Wednesday.

ONGC has not expressed any interest to sell its stake in Pawan Hans, possibly because it uses the company’s helicopters for operations to and from its oil rigs, one of the officials said.

With ONGC choosing to retain its stake, the government intends to make it clear to interested private parties that they can purchase only 51 percent in Pawan Hans.

Slow UDAN

The government may allow Air Odisha and Air Deccan to start flight operations on routes awarded to it under the regional connectivity scheme with a lag if issues hampering the launch were beyond their control, the officials said.

Airlines that won flight routes under the first round of UDAN had time till September 30 to start operations, failing which they will forfeit the routes, according to the policy. Three airlines out of the five, Alliance Air, TruJet, and SpiceJet Ltd., have started operations on UDAN routes thus far.

The second phase of the scheme is expected to be rolled out within the next 10-15 days, at which point the government will begin inviting bids, the officials said.