SALE OF STAKE IN PAWAN HANS

Attempt by the government to sell 51 percent stake in Pawan Hans received a setback when the proposal failed to attract adequate number of bidders. The attempt to sell stake was abortive when one of the two shortlisted bidders pulled out of the race citing lack of interest. The two finalised bidders were Indian helicopter major Global Vectra Helicorp and US-based Continental Helicopters. The tender therefore, is to be floated again. The government had invited bids from private companies both from within the country as well as from abroad, to buy its stake, along with management control in the helicopter service operator. While the last date for submitting expres- sions of interest was December 8, 2017, it was later extended till December 15. Industry insiders said prospective bidders were reluctant to buy stake in a company in which a government-owned entity, ONGC, held a substantial stake. ONGC owns a 49 per cent stake in the company.

Pawan Hans has a fleet of 43 helicopters and operates largely in remote areas. It has run a profitable operation, registering a profit of 2.48 billion in 2016-17. The Centre has planned the privatisation, or strategic sale, of a number of state-owned companies and properties to meet its budgeted target of 800 billion for 2018-19.