The funds are expected to support a range of strategic initiatives, including the acquisition of new helicopters

State-owned helicopter operator Pawan Hans Ltd (PHL) is likely to receive an approximately ₹500-crore Centre-backed loan with a tenure of 10 years, sources told businessline.

The Centre is examining the chopper operator’s proposal along with its plans to acquire new aircraft as well as expand operations. 

The proposal is currently under consideration, with discussions focused on the financing structure and terms of support.

“At the present moment, only the determination of the interest rate is being deliberated upon,” the source added.

The interest rate on the proposed loan could be at a nominal rate of 2 per cent. The proposed funding support is being evaluated in the context of Pawan Hans’ ongoing fleet expansion and diversification plans.

to support initiatives

The funds are expected to support a range of strategic initiatives, including the acquisition of new helicopters, expansion of offshore operations, re-entry into the seaplane segment and the development of other specialised aviation services.

Over the past few years, the chopper operator has been pursuing opportunities across offshore operations, regional connectivity, helicopter emergency medical services (HEMS), seaplane operations and other specialised aviation segments.

businessline was the first to report that Pawan Hans is set to procure 10 Made-in-India Dhruv New Generation (NG) helicopters from Hindustan Aeronautics Ltd (HAL), with the possibility of a follow-on order for five additional helicopters as part of its long-term fleet expansion programme.

The procurement of the initial batch was formalised during Wings India 2026. The procurement assumes significance as Pawan Hans has won ONGC’s crew change contract worth ₹2,141 crore for a period of 10 years following a global bidding process.

Accordingly, the first four Dhruv NG helicopters are slated to be deployed for offshore operations for ONGC, while the remaining helicopters are expected to support the company’s broader operational requirements.

In 2024, the helicopter operator had offered to provide Made-in-India helicopters for ONGC’s offshore requirements.

Consequently, the helicopter acquisition programme, estimated at around Rs 1,000 crore, is partly expected to be funded through Central government grants and sovereign-backed loans.

Seaplane segment

Beyond fleet modernisation, Pawan Hans is preparing to re-enter the seaplane segment after a gap of more than a decade.

As reported earlier by businessline, the company plans to induct aircraft on a wet lease basis and initially deploy them on select routes.

The move, sources said, is aimed at supporting emerging opportunities in regional connectivity, particularly in areas where conventional airport infrastructure remains limited.

In addition, the chopper operator has also been exploring opportunities in HEMS and other specialised aviation services in partnership with State governments.

Moreover, Pawan Hans continues to play a key role in providing last-mile connectivity to remote and inaccessible regions, apart from undertaking offshore transportation, charter services, search-and-rescue missions, pilgrimage flights and other aviation operations.

At present, Pawan Hans is a 51:49 joint venture between the Central government and ONGC.

Published on June 10, 2026