The government has withdrawn the preliminary information memorandum for proposed disinvestment of helicopter services provider Pawan Hans, after failing to attract enough bidders. Pawan Hans is a joint venture under the civil aviation ministry and state-owned ONGC holds 49 per cent stake in it.
However, the whole process is being revisited as the PIM (preliminary information memorandum) failed to attract enough bidders, sources said. "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 (DIPAM).
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 the privatisation move. It suggested that instead of an outright sale, the government should consider coming out with an IPO.