The Center is likely to issue the award letter to the winning association early next week
The Center is likely to issue the award letter to the winning association early next week
hints about Due process is not being followed Senior finance ministry officials on Friday said the government’s proposed sale of 51% stake in loss-making air transport operator Pawan Hans Ltd. has been termed as “false and wrong”. He said the Center would probably issue the award letter to the winning association early next week.
Last Friday, a ministerial panel empowered by the Cabinet Committee on Economic Affairs to decide on the disinvestment transaction details Stake sale and transfer of management control was approved A special purpose vehicle set up by Star9 Mobility Pvt Ltd, a consortium of bidders, at Pawan Hans.
“One of the perverse arguments we have heard is that the successful entity has a net worth of ₹1 lakh instead of a net worth of ₹300 crore, and was only set up in October 2021, so there was no way out. One year’s audited financial statements are submitted as required. A senior official of the Department of Investment and Public Asset Management (DIPAM) said, “This is a misrepresentation of facts.”
Even to be eligible to bid for the proposed disinvestment, those in the race had to demonstrate a net worth of ₹300 crore, which was done by the winning consortium’s partners. Star9 Mobility was incorporated last October as three partners – Big Charter Pvt Ltd, Maharaja Aviation Pvt Ltd and Almas Global Opportunity Fund SPC – could not bid without an entity representing them.
combined net worth
“After the issuance of the Preliminary Information Memorandum, the three partners of the winning association had submitted proof of combined net worth of ₹699.49 crore. At the time when we called for ₹710.08 crore for bidding, it was updated again,” the official explained. “In both the phases, all three submitted their updated financial statements for the last 12 months,” he said.
The sale process, which will fetch the Center ₹211.14 crore for its stake, will proceed next week with the Center issuing the award letter, after which the buyer will have to obtain regulatory approval and deposit the money.
ONGC, which holds a 49% stake in the company, will also offer its stake to Star9 Mobility after the award letter is issued, and the buyer will have a week to express its interest in buying those shares as well.