ONGC may raise stake in Pawan Hans to 49%

NTPC wants to invest Rs 55 cr in the company in return for services.

Oil and Natural Gas Corporation (ONGC) has proposed to increase its equity in government-owned Pawan Hans Helicopters (PHHL) to 49 per cent from the present level of 21.5 per cent, by infusing Rs 96 crore. In addition, another government-owned entity, NTPC, is proposing a Rs 55 crore investment in the company, in return for services, not equity.

R K Tyagi, chairman of PHHL, told journalists of these developments today, in the presence of Union civil aviation minister, Praful Patel, at the launch of a seaplane service in the Andaman and Nicobar Islands, to promote tourism. It is the first such service in the country.

Pawan Hans, in which the Union government owns 78.5 per cent, was incorporated in 1985 to provide helicopter support to the oil industry, services to remote areas and also to promote tourism. Today’s seaplane launch was the result of an agreement with the islands’ administration under a cental scheme to promote tourism. The two parties are to share losses and profits equally. Tyagi said ONGC had also agreed to give Pawan Hans a five-year loan of Rs 275 crore. “We hope this (the ONGC infusion) will happen by the end of the current financial year,” said Subir Das, general manager of the western region, PHHL.

Pawan Hans has 41 helicopters.“Our total fleet acquisition plan is of Rs 500 crore. Fifteen helicopters were to be added; out of that, seven are already delivered,” said Tyagi. He said the NTPC loan would be used for fleet expansion, for which PHHL would also tap its internal resources to generate Rs 150 crore. The government will also separately infuse Rs 14 crore into Pawan Hans.

Civil aviation minister Praful Patel said PHHL could also look at inviting foreign investors, as 100 per cent foreign direct investment is permitted in a seaplane operation venture. He suggested PHHL look at joint venture opportunities with the private sector to tap the business opportunities in such operations. He hoped PHHL would become a company of 500 helicopters in due course of time. Patel named the seaplane launched today as Jal Hans.

His ministry had plans to introduce seaplane operations in other parts of the country, such as Lakshadweep, Goa and Orissa.