Will helicopter service provider Pawan Hans be repositioned or sold?
What's the story
A parliamentary committee has urged the Ministry of Civil Aviation to consider either selling or repositioning state-owned helicopter service provider Pawan Hans. The 31-member panel, in a report submitted to Parliament on March 25, suggested that the ministry should define a clear strategic direction for Pawan Hans. This could include restructuring, re-attempting disinvestment, or even positioning it as a strategic helicopter operator for Northeast India and island connectivity.
Ownership
Attempts to privatize Pawan Hans have failed
The Ministry of Civil Aviation owns a 51% stake in Pawan Hans, while Oil and Natural Gas Corporation (ONGC) owns the remaining 49%. However, attempts to privatize the helicopter operator in 2016, 2017, 2019, and 2020 were unsuccessful. The process was called off in 2023 after a winning consortium was disqualified due to pending legal cases.
Financial overview
Financial performance of Pawan Hans
In FY25, Pawan Hans reported a revenue of ₹369.63 crore but also posted a loss of ₹16.15 crore. The company operates a fleet of 46 helicopters, which are crucial for its operations in the Northeast region and island connectivity services.
Staffing issues
Fill staffing shortages at DGCA, BCAS: Parliamentary panel
The committee, chaired by JD(U) MP Sanjay Kumar Jha, also flagged staffing shortages at the Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS). The DGCA is responsible for safety oversight while the BCAS handles security oversight and protocols for airports and airlines. The panel recommended that these vacancies be filled on an "urgent basis" via fast-tracking UPSC-recommended candidates and exploring lateral hiring.
Expert opinions
Technical vacancies at DGCA remain unresolved
Industry experts have pointed out that the staffing shortage issue, particularly in technical roles at DGCA, remains unresolved. Rajendra Prasad, Director (Airworthiness) at DGCA and aviation safety expert, said, "Technical vacancies in key departments such as air safety and airworthiness continue to remain." He also noted that the head of this regulatory body is almost always a bureaucrat rather than a technical person.