Pawan Hans directed to submit five-year turnaround plan by December

NEW DELHI: The Department of Public Enterprises (DPE) has directed state-owned helicopter operator Pawan Hans to submit a comprehensive five-year turnaround plan by December. The roadmap aims to address financial restructuring, enhance operational efficiencies, and identify new revenue streams for the aviation company.

The directive, issued in the first week of October, follows a September meeting between Pawan Hans management and senior DPE officials. The company management is expected to engage a senior consultant to assist in drafting the strategy. This initiative aligns with a broader government push to support central public sector enterprises with strategic potential, as recommended by a committee headed by Cabinet Secretary TV Somanathan.

According to the proposal, the turnaround exercise will evaluate opportunities in heli-tourism, religious tourism, helicopter emergency medical services, and regional connectivity. The development of heliports and services for remote destinations are also expected to feature prominently in the expansion strategy. Additionally, the civil aviation ministry has allocated ₹450 crore for fleet modernisation, which includes the proposed induction of indigenous Dhruv helicopters from Hindustan Aeronautics Ltd. The company is also exploring electric seaplane technology, having signed a non-binding memorandum of understanding with Norway-based Noemi Aerospace in August.

Corporate filings indicate that Pawan Hans, headquartered in Noida, generated between ₹100 crore and ₹500 crore in revenue for the financial year ending March 2025, with a compounded annual growth rate of -14% over the last year. The renewed focus on the operator comes after the collapse of its strategic divestment. In May 2022, a consortium led by Star9 Mobility was selected to acquire a 51% stake for ₹211.14 crore, but the process was called off in July 2023 due to pending legal cases.

"There is a lot of potential for the state-owned helicopter operator and, with proper hand-holding, it can grow multifold," a senior official noted regarding the shift from divestment to restructuring. The emphasis on indigenous fleet modernisation and new verticals indicates a strategic pivot towards leveraging the existing infrastructure for national connectivity goals under the Udaan scheme.

As Pawan Hans prepares to finalise its five-year roadmap, the integration of modern fleet assets and exploration of emerging aviation technologies will be critical. The success of this turnaround plan will depend on the effective execution of these new revenue streams and the resolution of past operational bottlenecks.