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ONGC to raise stake to 49% in Pawan Hans

ONGC to raise stake to 49% in Pawan Hans
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First Published: Mon, Dec 27 2010. 02 19 PM IST
Updated: Mon, Dec 27 2010. 02 19 PM IST
Mumbai: State-run explorer Oil and Natural Gas Corp plans to raise its stake in unlisted Pawan Hans Helicopters to 49% from around 21% by infusing about Rs 960 million, senior officials said on Monday.
“We hope this (the ONGC infusion) will happen by the end of the current financial year,” Subir Das, general manager of western region, Pawan Hans, told reporters.
After the equity infusion, the government’s holding in the company will be diluted to 51%, said R.K. Tyagi, chairman, Pawan Hans.
The government at present holds around 79% in Pawan Hans, the country’s largest helicopter services company that provides support services to oil sector and tourism.
Tyagi also said ONGC has agreed to give Pawan Hans a five-year loan of Rs 275 crore.
“Our total (fleet) acquisition plan is of Rs 500 crore. Fifteen helicopters will be added, out of that seven are already delivered,” Tyagi said. He said NTPC has also agreed to give loans of Rs 550 mn and Pawan Hans will also tap its internal resources to generate Rs 150 crore to facilitate fleet expansion plans.
The company currently has 41 helicopters, he said.
The government will also separately infuse Rs 140 million into Pawan Hans, which has launched the first seaplane operations in India in the Andaman and Nicobar Islands, Das said.
Pawan Hans can also look at inviting foreign investors as 100% foreign direct investment is permitted in seaplane operations, India’s aviation minister Praful Patel said. At 2.13 p.m., shares in ONGC were up 0.38% at Rs 1,299.50 in a choppy Mumbai market.
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First Published: Mon, Dec 27 2010. 02 19 PM IST