The decision came as a consequence of the disqualification of the winning bidder, Star9 Mobility, due to pending legal cases against them, introducing an element of perplexity to the situation. The government had initially agreed to sell Pawan Hans to Star9 Mobility, a consortium comprising Big Charter Pvt Ltd, Maharaja Aviation Pvt Ltd, and Almas Global Opportunity Fund SPC, for a sum of Rs 211.14 crore. Pawan Hans, a joint venture between the government and ONGC, boasts a 51% and 49% stake, respectively, in the company.
Image-: Swarajya
In a surprising turn of events, the government abruptly terminated the strategic disinvestment plans for Pawan Hans, a prominent helicopter service provider.
The decision came as a consequence of the disqualification of the winning bidder, Star9 Mobility, due to pending legal cases against them, introducing an element of perplexity to the situation.
The government had initially agreed to sell Pawan Hans to Star9 Mobility, a consortium comprising Big Charter Pvt Ltd, Maharaja Aviation Pvt Ltd, and Almas Global Opportunity Fund SPC, for a sum of Rs 211.14 crore. Pawan Hans, a joint venture between the government and ONGC, boasts a 51% and 49% stake, respectively, in the company.
Unfortunately, the sale was put on hold in May 2022 when it came to light that the Kolkata bench of the National Company Law Tribunal had issued an unfavorable order against Almas Global Opportunity Fund SPC, a member of the successful consortium, in another case relating to a resolution plan under the Insolvency and Bankruptcy Code. Consequently, the government refrained from issuing the letter of intent for the sale to the winning bidder, adding further complexity to the situation.
While the cancellation of the strategic sale of Pawan Hans is not anticipated to significantly impact the government’s disinvestment target of Rs 51,000 crore for FY24, it does shed light on the numerous challenges confronting the ongoing selloff initiatives.
It is worth noting that Pawan Hans Limited operates as a central public sector undertaking in the transportation sector, with its headquarters situated in Noida, Delhi NCR, India. It falls under the ownership of the Ministry of Civil Aviation, Government of India.
Over the years, it has accumulated an impressive record of flying more than 1 million hours and completing 2.5 million landings. The company’s operations are primarily based at the Juhu Aerodrome in Vile Parle (West), Mumbai, with a regional office in Delhi.
Apart from offering helicopter services to the Oil and Natural Gas Corporation (ONGC) for off-shore locations, this government-owned helicopter service provider is extensively involved in providing services to various state governments in India, particularly in North-east India.
Furthermore, it caters to Inter-island ferry services in the Andaman and Nicobar Islands, as well as serving the Lakshadweep Administration for the past 26 years by transporting people from islands to the Cochin International Airport and providing inter-island services.The company also extends its support to the BSF and Maharashtra Police in terms of medical and logistics assistance during Maoist attacks on troops, further highlighting its diverse operational scope.
The annulment of the Pawan Hans disinvestment plans serves as a vivid reminder of the intricate challenges that the government faces in its ongoing efforts to sell off state-owned enterprises.
