Norms eased to sell Pawan Hans stakes

Tribune News Service

New Delhi, July 22

Failing twice to get through its disinvestment plan to privatise state-owned Pawan Hans, the helicopter company, the government has now decided to ease terms of sale by changing pre-determined conditions relating to employees retrenchment, asset sale and tax liability.

Sources in the Civil Aviation Ministry, who are in the know of the development, said according to the revised terms of sale, the winning bidder would now be required to retain all permanent employees only for a period of one year, instead of earlier stipulated two-year norm. Against the three years of lock-in stipulated earlier, they said, the government has now proposed to reduce the time period to dispose of the assets of Pawan Hans to two years and also if the company loses the case over the disputed tax liability worth Rs 577 crore, the prospective buyer would be compensated.

Sources said these changes have been brought into the terms of sale to make it easy for the prospective buyer to run the company.

During last financial year, the government had made a failed bid to offload its 51 per cent holding in the company, which has a fleet of 43 helicopters. The rest 49 per cent is currently held by state-run oil explorer ONGC. Even earlier in October 2017, too, an attempt was made to sell the company, but in view of subdued response the plan was withdrawn in April 2018.

In its latest bid on July 11, 2019, the government floated a fresh Preliminary Information Memorandum (PIM) with a minimum net worth of Rs 350 crore. This has invited the interested parties to submit Expression of Interest (EoI) by August 22 and the short-listed bidder will be intimated on September 12.

Winning bidder… 

• To retain permanent staff for one year against previous 2-year norm
• To dispose of assets of Pawan Hans in two years against the three years of lock-in stipulated earlier
• Will be compensated if the company loses the case over the disputed tax liability worth Rs 577 crore