Failing twice to get through its disinvestment plan to privatise state-owned Pawan Hans, the helicopter company, the government has now decided to ease terms of sale by changing pre-determined conditions relating to employees retrenchment, asset sale and tax liability.
Sources in the Civil Aviation Ministry, who are in the know of the development, said according to the revised terms of sale, the winning bidder would now be required to retain all permanent employees only for a period of one year, instead of earlier stipulated two-year norm.
Against the three years of lock-in stipulated earlier, they said, the government has now proposed to reduce the time period to dispose of the assets of Pawan Hans to two years and also if the company loses the case over the disputed tax liability worth Rs 577 crore, the prospective buyer would be compensated.
Sources said these changes have been brought into the terms of sale to make it easy for the prospective buyer to run the company. Read More