The government has withdrawn its preliminary information memorandum for the proposed divestment of helicopter services provider Pawan Hans Ltd. due to muted demand.
“The PIM for inviting expression of interest issued on October 13, 2017, has been cancelled. Further details in this regard will be issued shortly,” said a notice on the website of Department of Investment and Public Asset Management. The whole process is being revisited as the memo failed to attract enough bidders, sources told PTI.
Pawan Hans is a joint venture under the civil aviation ministry and state-owned Oil and Natural Gas Corporation Ltd. that holds 49 percent stake. The government issues PIM before strategic stake sale to assist the prospective bidders with information about the company to be divested.
According to sources, Pawan Hans' helicopters union had written to the government last month urging the management to reconsider privatisation. It suggested that instead of an outright sale, the government should consider coming out with an initial public offering.
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