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New Delhi: After the privatisation of Air India, the government of India is all set to announce the winner of the sale of helicopter service provider, Pawan Hans, on Saturday. According to a report by Bloomberg, a group of officials headed by Cabinet Secretary Rajiv Gauba will meet on Saturday to pick the winner. Some of the companies that have placed their bid for sale are JSW Steel Ltd and Jindal Steel & Power Ltd.
The government has set a disinvestment target of Rs 65,000 crore for the current financial year. To meet the target, the date of launch of LIC IPO is also expected to be announced soon.
Pawan Hans provides air transportation services for oil exploration activities for ONGC Ltd. ONGC also holds a 49 per cent stake in the company, with the rest 51 per cent being with the government of India. According to Bloomberg, ONGC will also sell its stake at the same price and terms as the government.
The government is expected to raise Rs 300-350 crore from the privatisation of Pawan Hans. Interestingly, this is the government’s fifth attempt to privatise the company. In 2019-20, the company reported a net loss of Rs 28 crore lower than Rs 69 crore in 2018-19. As of March 31, 2020, its authorised capital stood at Rs 560 crore and the paid-up share capital at Rs 557 crore.
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