ONGC to raise stake in Pawan Hans to 49%

Mumbai: Oil and Natural Gas Corp (ONGC) will increase its stake in Pawan Hans Helicopters Ltd from the current 21% to 49% for around Rs95 crore.
Pawan Hans is expected to use the proceeds, along with other debt-based and government funding, for fleet expansion. The state-owned helicopter service company has huge expansion plans, which would be funded through ONGC’s equity investment and loan of around Rs275 crore, along with debt funding by NTPC of Rs55 crore and government funding of around Rs14 crore.
The loan-based funding committed by NTPC and ONGC would be disbursed in tranches as and when Pawan Hans takes deliveries of helicopters. The loan term is around five years.
Pawan Hans is also negotiating an additional Rs100 crore from Border Roads Organisation. Company officials are hopeful that ONGC’s equity infusion would be complete by the end of this financial year.
By the end of 2011, the company plans to add around 15 more helicopters to its current fleet of 52 helicopters (41 helicopters + 11 on maintenance and operations). While seven of these 15 choppers have already been delivered, the remaining eight are expected to join the fleet by December 2011.
28/12/10 Amritha Pillay/Daily News & Analysis

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Categories: Indian Aviation- In General Dec 2010