The Civil Aviation Ministry is in the last stages of finalising the modalities for the divestment of the state-owned helicopter company, Pawan Hans Helicopters Ltd (PHHL),and will be sending its report to the Department of Investment and Public Asset Management in the Finance Ministry in a week, a senior Government official said on Wednesday.

The Cabinet Committee on Economic Affairs had given its in-principle approval for divestment of PHHL in October last year.

The Centre holds 51 per cent stake in PHHL, while the Oil and Natural Gas Corporation owns the remaining 49 per cent.

Meanwhile, Ashok Gajapathi Raju, Minister for Civil Aviation, and Jayant Sinha, Minister of State for Civil Aviation, today attended a meeting in the Ministry on issues connected with PHHL’s divestment.

Global interest The divestment of PHHL is likely to see a lot of global interest for a variety of reasons including the low per capita penetration of helicopters in India — about 276 helicopters or one helicopter for every 47 lakh people — which provides a huge opportunity waiting to be tapped. Besides, the Directorate General of Civil Aviation (DGCA) is also looking at liberalising rules for operating helicopters.

PHHL has contracts, all won through competitive bidding, which will run for the next three to five years.

The contracts vary from providing machines to various State governments to ferrying people and essentials. Whoever invests in the company, therefore, need not start from the scratch to build it. An enterprising buyer can look at many ways of using the 43 helicopters that PHHL has.

Measures taken The company has also undertaken several measures to professionalise its functioning, including restructuring its board, and is also expected to appoint independent directors within the next two months, all of which are being looked at as signs that it is keen to divest.

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