Pawan Hans disinvestment: Cong questions why merger with ONGC not explored

New Delhi [India], May 1 : The Congress on Sunday questioned the Central government over the sale of its 51 per cent stake in Pawan Hans Ltd (PHL), asking why the government did not explore merging the firm with ONGC.
The Government on April 30 said that it has approved the highest bid of Star9 Mobility Pvt Ltd for the sale of its 51 per cent stake in Pawan Hans Limited for Rs 211.14 crore. PHL is a joint venture of the Central government and ONGC providing helicopter and aero mobility services.
Congress spokesperson Gourav Vallabh, while addressing the media, slammed the BJP-led Central government and said, "In the series of miscalculated and injudicious disinvestment decisions to justify their financial policies, they are committing series of blunders. After our repeated exposures against the injudicious disinvestment of CEL, the government had to finally take it back. The Modi government has sold a 51 per cent stake in Pawan Hans to Star9 Mobility Private Limited at Rs 211.14 crores. The reserve price for the sale of this 51 per cent majority stake was fixed at Rs 199.92 crores. The other two bidders that participated made bids of Rs 181.05 Crores and Rs. 153.15 crores respectively."
Vallabh said that while this may seem like a normal disinvestment, there are several things that raise eyebrows such as the Star9 Mobility Private Ltd is a consortium of Big Charter Private Limited, Maharaja Aviation Private Limited and Almas Global Opportunity Fund SPC and was set-up just 6 months ago on 29 October 2021.
"Star9 Mobility Private Ltd doesn't have any helicopters of its own while Big Charter Private Limited has just 3 helicopters in its fleet. Also, Almas Global Opportunity Fund SPC is set up under the jurisdiction of Cayman Islands and has no correlation or experience in this sector," he said.
The Congress leader further calimed that there is a court case going on between Big Charter Private Limited and Ezen Aviation Private Limited in the Delhi High court.
Vallabh said that the Pawan Hans employee union expressed interest in participating in the disinvestment process and had also recommended that Pawan Hans be merged with ONGC or made a subsidiary company but the government brushed it off.
"Pawan Hans made a Net Profit of Rs 242.78 Crores in 2016-17 but has gone downhill since 2018-19 making losses of Rs 63.67 Crores in 2018-19 and Rs. 33.15 crores in 2019-20," he added.
The Congress leader further raised questions to the Modi Government over the decision and asked, "With details available about the bidders and their consortium there are red flags, when it was set-up just 6 months ago, small fleet size and registered in Cayman Islands), how did the Government agree to such a deal?"
"There were 3 bidders that participated in the disinvestment process but only one bidder bid over the reserve price. What was the government's reason to go ahead with just one proper bid? 3. Did the government explore merging Pawan Hans with ONGC, keeping in mind they already have 49 per cent stake and Pawan Hans playing a very strategic role with ONGC, HAL etc.?" Vallabh further asked.
Pointing that a company that has been consistently making net profits suddenly starts making losses since 2018-19 around the same time when the disinvestment was first processed, he asked "is this again an attempt to lower the valuation to ease sale to someone who would benefit?".
He said that Pawan Hans is South-East Asia's largest helicopter company with a fleet of 42 Helicopters.
"Off-shore operations, connecting inaccessible areas, charter services, search and rescue work, VIP transportation, corporate and special charter flights, hotline washing of insulators and Heli-pilgrims such to Kedarnath, Badrinath, Amartnath, Maa Vaishno Devi, are some of its major are some of the major services of Pawan Hans
The Congress leader said that Pawan Hans is a very strategic organization catering to ONGC, HAL and BSF with 51% stake with the Government of India and 49 per cent with ONGC before the disinvestment process
Pawan Hans has been a profitable company until 2017-18 but post that it has been continuously making losses till date, Vallabh added.
Vallabh further accused the BJP of inept handling of the economy and said after eight years of disastrous financial management, the economy is reeling.
"BJP government has forced sectors to the end of their tethers that needed support and have magically made good companies and sectors struggle. They are violating all prudence and common logic to find a way out of the financial mismanagement caused in the last 8 years," he added.
The government holds 51 per cent of the shares in the company and ONGC holds the balance 49 per cent. ONGC had earlier decided to offer its entire shareholding to the successful bidder identified in the strategic disinvestment.