Coal News We love to talk!

AUG 10 2017

Merge company with ONGC, suggests Pawan Hans employee union

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 10th AUG 2017

 

Pawan Hans could be merged with state-owned ONGC or made its subsidiary, a section of employees at the helicopter service provider has suggested even as they opposed the government's disinvestment plan.

The All India Civil Aviation Employees' Union (AICAEU) has again written to the Prime Minister's Office seeking intervention for reconsideration of the decision to sell 100 per cent stake in Pawan Hans.

Pawan Hans -- where the Centre and ONGC hold 51 per cent and 49 per cent stake, respectively -- has more than 900 employees, including 450 on permanent roll. The union claims to represent around 300 employees of Pawan Hans.

In a letter dated August 7, the union has suggested that Pawan Hans be merged with ONGC or made a subsidiary company by way of increasing ONGC's stake to 51 per cent.

After ONGC hikes the stake to 51 per cent, Pawan Hans can go for public issue "to get the government a much higher price from the sale of shares... in the next five years with expansion and improved performance", the letter stated.

"Once Pawan Hans Ltd becomes a subsidiary of ONGC, its market value shall be two to three times higher based on its linkage to ONGC share prices," it added. In October last year, the Cabinet Committee on Economic Affairs (CCEA) had given its in-principle approval to strategic disinvestment of profit-making Pawan Hans. Set up in 1985, Pawan Hans has a fleet of over 40 helicopters.

Tags

ONGC Cabinet Committee on Economic Affairs India ongc

Related News

  • Government may cut power price to boost rural supply, says Piyush Goyal  Read more
  • ONGC to cut gas production by 40%  Read more
  • Power utility company CESC lines up Rs 3,000 crore for renewables, acquisitions on radar  Read more
  • Russia, India negotiating on more acquisitions projects in hydrocarbons sector  Read more
  • CAG pulls up MoEF for favouring R-Power, JP  Read more
  • ONGC net profit dips 21 per cent in April-June quarter  Read more
  • Essar Power's generation up 49% in 2016-17  Read more
  • BHEL,GAIL get Maharatna status  Read more
  • Govt. exploring opportunities to set up nuclear power plants in U'khand, Punjab and Haryana, says Dr Jitendra Singh  Read more
  • Cut power losses to below 10 per cent in 6 months, Centre tells states  Read more