New Delhi, June 05, 2023 : The government has called off the strategic disinvestment of Pawan Hans, the helicopter company that provides air services to oil and gas companies. The government had received no bids for the company, which was being sold at a reserve price of Rs 2,500 crore. The decision to call off the disinvestment was announced by the Department of Investment and Public Asset Management (DIPAM) on Monday. The DIPAM said that the government had examined the adverse orders of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) against the winning bidder, Star9 Mobility Pvt Ltd.
In 2022, the government had selected Star9 Mobility as the winning bidder for Pawan Hans. However, the NCLT and the NCLAT later ruled against Star9 Mobility, citing pending legal cases against the company. The government said that it had decided to call off the disinvestment in the interest of the company and its employees. The government said that it would continue to explore other options for the disinvestment of Pawan Hans.
The decision to call off the disinvestment has been welcomed by some quarters, who have argued that the company should not be sold to a company with pending legal cases. However, others have criticized the decision, saying that it will delay the much-needed privatization of Pawan Hans.Pawan Hans is a 51:49 joint venture between the government and Oil and Natural Gas Corporation (ONGC). The company provides helicopter services to oil and gas companies, as well as to other government agencies. Pawan Hans has a fleet of over 50 helicopters and operates in 23 states in India.
The government had been planning to sell its stake in Pawan Hans for several years. The government had hoped to raise around Rs 2,500 crore from the sale of the company.The decision to call off the disinvestment is a setback for the government's privatization plans. The government has been facing challenges in selling its stake in several public sector companies.
It remains to be seen whether the government will be able to find a buyer for Pawan Hans in the future. However, the decision to call off the disinvestment is a clear indication that the government is facing difficulties in privatizing public sector companies.