New Delhi, Nov 10 (IANS): Civil Aviation Minister Ashok Gajapathi Raju Monday said the government in its draft civil aviation policy has planned to list on stock markets its profit making subsidiaries Airports Authority of India (AAI) and Pawan Hans.
"Under the new draft policy which will be under stake-holders' consideration for their view for the next 3-6 weeks, we have decided to list the AAI and Pawan Hans," Raju told IANS here on the sidelines of presenting the draft civil aviation policy here.
"This is no compulsion to list any of the two entities to mop up funds or something. Both the companies have been doing extremely well with AAI giving dividends back to the government for the last couple of years."
According to Raju, the ministry will look into the issue of the companies' listing procedure and then send a draft proposal to the finance ministry, which will then take up this issue for further verification.
The ministry will review its standing on the listing issue with the other stake holders of the company. Pawan Hans is partly owned by the civil aviation ministry (51 percent) and Oil and Natural Gas Corporation (49 percent).
In January, Pawan Hans after a gap of four years paid a dividend of Rs.1.19 crore for the financial year 2012-13. It earned operating revenue of Rs.465.25 crore (Rs.428.86 crore in the previous year).
The net operating profit for 2012-13 was Rs.39.64 crore and the company managed to turn around with profits of Rs.11.70 crore against the net loss of Rs.10.35 crore during previous year.
In the case of AAI, the government will consult all the stake-holders, including the unions, before going ahead with any privatisation or listing plans, the minister said.
AAI had paid an interim dividend of Rs.145 crore to the government for the previous fiscal.
The AAI's total revenue for the fiscal ending March 2014 stood at Rs.8,184 crore, while profit before tax was Rs.2,685 crore (as per provisional accounts).
The AAI made a net profit of Rs.735 crore in 2012-13 and paid a dividend of Rs.171.90 crore to the government.
AAI has spent Rs.2,095 crore on modernising airport terminals, passenger facilities, air traffic and navigational aids in the financial year 2011-12 against Rs.2,503 crore in 2010-11.
"There are recommendations that communications, navigation and surveillance (CNS) part of the air traffic management be hived-off from AAI before listing it. This will also be taken up by the committee and discussions on the new draft civil aviation policy," Raju said.
On the cash-starved Air India's future, the minister said there have been many proposals like infusion of fresh capital to allow a limited entry of private players by handing the management of the company to outside professionals.
"These proposals and possibilities will be studied in the draft policy and all the stake holders will be consulted before a final decision is made," Raju said.
On the government's plans to dilute the 20 years and five aircraft rules for Indian passengers carriers to fly abroad, the minister said that deliberations have been taken on the issue and industry's views have also been taken in.
"It was a cabinet decision. At some point of time, it has to go back to the cabinet for dilution or change. The amended version or the best possible solution to the scheme is being looked at by the ministry before going to the cabinet."
On the new anti-hijacking bill, the minister said that a new draft copy, incorporating recent international obligations and procedures signed and adopted by the government, will be sent to the Rajya Sabha in the winter session of parliament.
The new civil aviation policy is the first for the country. It has taken many years to compile the policy, as the industry and stake-holders have been crying out for a definitive policy in the sector for years.
The policy is now being expected to be deliberated upon during the next 3-6 weeks before being finally adopted between January or March this fiscal year.