Not getting the logic of privatising profit-making Pawan Hans: Par panel

A Parliamentary panel has asked why profit-making Pawan Hans is being disinvested, saying it fails to understand the logic behind such a move. The comments came in a report of the Parliamentary Standing Committee on Transport, Tourism and Culture led by Trinamool Congress MP Mukul Roy.

After examining the Action Take Report submitted by the Ministry of Civil Aviation (MoCA), the panel said, it "fails to understand why strategic disinvestment has been started for Pawan Hans which is a profit making organisation".

In its report on Demand for Grants (2017-18), the panel had said it is making a profit but Pawan Hands need money for its fleet expansion and fleet replacement. It wanted the government to seriously consider providing a one-time grant of Rs 600 crore for its "ambitious expansion plan".

However, in its reply, the MoCA said, as the process of strategic disinvestment of Pawan Hans has started, the guidelines categorically states the fact that the company has been identified for strategic disinvestment must be kept in mind before any major investment decision is taken.

"In view of the above, Ministry of Finance has also returned the proposal for replacement of nine medium helicopters to be funded by Government equity," it informed the panel. However, the panel was not willing to buy this argument.

In the report, the panel also reiterated its recommendation that strict action is taken against those officials who allowed now-defunct Kingfisher Airlines to accumulate Rs 294.69 crore of dues. The panel in March had minced no words in criticising AAI for "allowing the accumulation of dues (by Kingfisher Airlines) to such a high level in violation of all the existing rules and procedures in practice".

The MoCA has informed the panel that an internal committee is looking into the matter to fix responsibility and to strengthen systems and procedures further to ensure prevention of recurrence of such accumulation of dues.