Star9 Mobility to buy 51% govt stake in Pawan Hans for Rs 211.14 cr

Star9 Mobility Private Ltd will pay Rs 211.14 crore to buy the government’s 51 per cent stake in state-owned helicopter service provider Pawan Hans, said the Finance Ministry on Friday

Loss-making Pawan Hans provides air transport services for exploration activities of Oil and Natural Gas Corporation Ltd. The central government has 51 per cent stake in Pawan Hans, while ONGC holds 49%. The oil explorer has decided to offer its entire shareholding to the successful bidder at the same price and terms as agreed by the government.

The government’s stake sale was approved by the Cabinet Committee on Economic Affairs, comprising union ministers Nitin Gadkari, Nirmala Sitharaman, and Jyotiraditya M Scindia, said a press release.

Pawan Hans has made losses in the last three years and owns a fleet of 41 helicopters with an average age of over 20 years. “With this privatization, it is expected that the strategic buyer will revitalize the company by replacing the aging fleet through infusion of fresh capital and improve the performance of the company,” said the release.

Bloomberg reported last week the asset sale plan will help bridge the budget gap and meet spending targets as the economy faces fresh headwinds from the geopolitical tensions. The government is targeting to garner Rs 650 billion ($8.5 billion) from disinvestment, including sale of minority stake in some companies, in the year to March 2023.

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