DELHI: Crisis-hit helicopter service Pawan Hans Limited has issued a circular to its employees stating that the company is not in a position to disburse employees' salaries for the month of April due to "uncomfortable financial position in Pawan Hans."
Pawan Hans is a 51:49 joint venture between the central government and state-owned oil explorer ONGC.
The company's management in its circular dated 25 April said, "The industry's future is uncertain as many of our established businesses and our associated challenges are threatening future deployments. In terms of financial performance, the revenue has sharply declined in the financial year 2018-19 and the company has incurred a net loss to the tune going to Rs 89 crore during this financial year."
The circular also stated, "Search trends were financially downturn as there was a serious mismatch that had been built up between the revenue income depending on the present business volume and the expenses, particularly on the staff cost. The situation has further turned critical as the outstanding amount lying with various customers has risen to alarming levels of over Rs 230 crores. Therefore, there is a need for complete transformation by adopting corrective measures in various areas of management."
The company has decided to defer April salaries of all employees except those who are contributing to the production until a target of 60 per cent recovery of outstanding dues (by bringing the receivable below Rs 100 crore) was met.
Meanwhile, the Pawan Hans Employees Union denounced the decision, arguing that, "It is inhuman to stop the salaries of workers who all are due for wage revision. It is for your kind information that we are wearing a black ribbon as a mark of protest against the inhuman act of the management."
The union members have threatened to approach the CAG and the CBI over Pawan Hans' financial issues if the management did not pay heed to their grievances.
Last year, the central government had decided to call off a fresh bid for 100 per cent stake sale in Pawan Hans. As of now, the firm has a fleet of around 46 choppers.
(With inputs from ANI)