Global Vectra Helicorp Ltd Management Discussions

Overview

Global Vectra Helicorp Limited (GVHL) is the largest private sector helicopter operator in India, providing professional, safe and accident-free helicopter services for over two decades. The spectrum of operations of the Company encompasses support to Indias Offshore Oil and Gas industry, Onshore operations for State Governments (VIP flying), election flying, Heli pilgrimage and other niche rotary services. GVHL is also pioneers for helicopter operations in the conduct of specialized aerial geophysical survey and for providing power industry support services.

GVHL is listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited and is an ISO 9001-2015, ISO 14001-2015 and OHSAS 45001-2018 certified Company. These certifications overarch all GVHL activities, including flight operations, engineering, safety, quality control and commercial systems. GVHL is also proud to be a long-term Corporate Member of the Rotary Wing Society of India (RWSI).

The vision of GVHL is to continue to deliver world class standards of safety and service to Indias helicopter industry and to be the leader in Offshore Oil & Gas operations. We are positively disposed to the evolution of the helicopter industry in India and abroad. To capitalize on this, GVHL continues to tailor its fleet and adapt its services to meet the dynamic needs of offshore and onshore markets.

Operations and Safety

GVHL maintains a fully compliant DGCA and ICAO Standard Safety Management System and the company ensures the highest level of safety standards, including having more than a dozen IATA certified aviation auditors on staff to underpin our safety and compliance programs. Being the largest private sector helicopter operator in India, GVHL has always ensured that safety is paramount in its operations and has recorded over 3,40,000 accident-free hours to date. GVHL has also been commended for our safety initiatives, including being awarded "Operator of the Year" in 2016 and 2017 by the India Business Aircraft Operators Association. The unblemished safety track record of GVHL also makes it preferred supplier for the top rung of the country for corporate, religious and leisure travel. It has world class maintenance facilities having highly skilled engineers and experienced pilots to ensure safe, secure and uninterrupted services to the nation.

Maintenance & Personnel

The major maintenance base for offshore fleet is Mumbai where all maintenance work is carried out including 5000 hours / 05 years check on its Bell 412 and 1200 hours / 04 years check on AW 139 fleet of aircraft in a 6600 sqm state-of-the-art hangar. This facility meets international quality standards and maintains all relevant certifications from the Directorate General Civil Aviation (DGCA) as a CAR 145 & CAR-M sub part G approved organization.

GVHL has a total staff of over 436 personnel, including pilots, engineers and support staff.

Audits

GVHL is actively involved in regular and stringent audit activities from some of the most prominent oil companies in the world, including British Petroleum, Total, British Gas, ONGC, Reliance, Dolphin Geo, CGG and Cairn, through their renowned auditing agencies like Hart Aviation, GSR, Airclaim Services, Schlumberger Asia Services Limited and Aviation Management Services. It is also fully compliant with all Directorate General Civil Aviation (DGCA) auditing schedules (Operations, Maintenance, Safety and Quality) and follows a rigorous Internal Audit program. Further, GVHL undergoes thorough independent financial auditing on a quarterly and annual basis.

Services

With a modern and technologically advanced fleet of helicopters, GVHL has a wide range of capability to provide essential offshore and onshore services to strategic sectors:

• Oil and Gas

• Geophysical Survey

• Corporate and VVIP flights

• Aerial Photography

• Religious Tourism

• Emergency services

• Underslung operations

• Power Industry Powerline Inspection, Construction and Maintenance Construction and Maintenance

• State Governments Support Services

• Election Flying

• Remote Location Freight Services

• Maintenance, Repair and Overhaul (MRO) services

Clients

Our offshore team is dedicated to providing Air logistics services to the Oil & Gas industry majors like Oil and Natural Gas Corporation (ONGC), Cairn India, Reliance Industries Limited (RIL), Transocean (TSF), Shelf Drilling, British Petroleum, Schlumberger Asia Services Limited, Baker Hughes, Jindal Drilling, Aban, ADES and many more. Companies involved in offshore Exploration & Production activities have to use helicopter services extensively for Crew Change, Production, Cargo and Medevac tasks.

Dolphin Geo, Shearwater, Polarcus, Fugro, CGG Veritas, Results Marine & Western Geco have been our major partners for seismic activities for whom we have flown on the East and West Coast of India.

GVHL also provides Onshore Helicopter Services to Vaishno Devi, Amarnath, Kedarnath and Char Dham also previously provided services to Machail Mata Yatra, Mani Mahesh Yatra and Shri Hemkund Sahib Yatra

GVHL generally provides services to its clients under long- term contracts. These contracts range from one to seven years including the extension options with an aim to be a major player in the helicopter market in India.

Bases

GVHL has its main operations and maintenance base at Juhu Airport, Mumbai with subnbases in various parts of India including: Juhu (Mumbai), S. Yanam, Rajahmundry, Suvali, Gadimoga, Imphal, Porbandar, Hyderabad, Itanagar, Katra, Raipur, Neelgrath and Vishakhapatnam.

Internal Control Systems and Adequacy

The Company has an appropriate system of internal controls to ensure that all activities are monitored and controlled against any unauthorized use or disposition of the assets and those transactions are authorized, recorded and reported correctly. The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines. The Audit Committee of the Board of Directors appraises the adequacy of internal controls.

Management Systems

GVHL is totally committed to maintaining the highest possible standards in its operations, maintenance and safety. GVHL introduced in India a full and formal Safety Management System (SMS) as per international recommendations and requirements of the Global Oil/Gas Industry and International Civil Aviation Organisation.

As part of our efforts to enhance our management systems, we have implemented an ERP (Enterprise Resource Planning) System from IFS AB, a Swedish company and one of the worlds leading providers of business software. Through this system, we have integrated the management data of Flight Operations, Maintenance, Repair and Overhaul (MRO) processes, Quality Control, Logistics, Inventory Management and Finance.

Human Resources

The Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business. Various HR initiatives are taken to align the HR Policies to the requirement of the business.

As on March 31, 2024 the Company has a total workforce of over 436 employees.

Mission Statement

GVHL shall provide safe, efficient and reliable helicopter services and we shall remain recognised as the operator of choice in the country. We shall also grow our brand internationally, by further enhancing our safety, quality and compliance functions, in line with internationally recognised standards and best practice principles for the industry.

• We are the first choice for helicopter services in India.

• Our commitment to maintaining our safety focus underpins all that we do.

• We deliver safe operations.

• We are cost effective and reliable, commensurate with high

quality of service provided.

• We shall exceed our customer expectations.

• We shall achieve our objectives - because we know where we are today and where we are going tomorrow.

• Our Mission is driven by our Management Team - but delivery comes from every member of our Company.

Oil and Gas Industry in India Introduction

The Oil and Gas Sector is among the eight core industries in India and plays a major role in influencing the decision-making for all the other important sections of the economy. India is the worlds fastest-growing energy market and retained its spot as the 3^rd largest energy and oil consumer in the World. India consumed 233.3 MMT petroleum products in Apr-Mar 2024, making a growth of 4.6% over the Apr-Mar 2023.

As on Apr 2022, estimated reserves of crude oil in India stood at 653.02 Mn tonnes. There are 26 sedimentary basins, covering a total area of 3.4 Mn sq. km. The area is spread across the land, shallow water up to 400-meter water depth and Deepwater further up to Exclusive Economic Zone (EEZ). It is intended to increase the nations exploration acreage by 0.5 Mn sq km till 2025 and by 1.0 Mn sq km till 2030. Cumulative crude oil production during Apr-Mar 2024 was 29.4 MMT.

India imported 232.5 MMT of crude oil for $132.4 Bn during Apr 2023-Mar 2024 as compared to an import of 232.7 MMT for $157.5 Bn during Apr 2022-Mar 2023. Import dependency in case of crude oil during Apr 2023-Mar 2024 was 87.7% as compared to 87.4% during the corresponding period of last year.

Oil demand in India is projected to register a 2x growth to reach 11 million barrels per day by 2045. Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and gasoline covering 58% of Indias oil demand by 2045.

Indias crude oil production in FY24 (until January 2024) stood at 22.71 MMT. Indias demand for energy is growing faster than any other major economy and the same trend is expected to continue. Growth will come in all sectors due to favourable demographics supported by urbanization and industrialization. Indias consumption of petroleum products stood at almost 4.44 million barrels per day (BPD) in FY23, up from 4.05 million BPD in FY22. Indias crude oil production stood at 2.69 MBPD during April-October 2023.

Indias oil and gas production is expected to achieve a mid- decade peak between 2023-2032, around 2027, driven by the KG-Basin projects operated by Reliance Industries Limited and Oil and Natural Gas Corporation (ONGC).

Indias oil demand in the year 2024 is expected to see a growth of 220,000 barrels per day to reach 5.57 million barrels per day, up 4.19% from 2023, as per an estimate by OPEC. Around three-quarters of the 2022-28 increase will come from Asia, with India expected to surpass China as the main source of growth by 2027.

Indian Oil and Gas sector

Upstream segment (exploration and production) - State-owned ONGC dominates the upstream segment. It is the largest upstream company in the Exploration and Production (E&P) segment, accounting for approximately 58.3% of the countrys total oil output.

Midstream segment (storage and transportation) - IOCL operates a network of more than 19,300 km long crude oil, petroleum product and gas pipelines with a throughput capacity of 124.4 million metric tonnes per annum of oil and 48.73 million metric standard cubic meters per day of gas.

Downstream segment (refining, processing and marketing) - IOCL is the largest company, controls 10 out of 22 Indian refineries. Top three companies IOCL, HPCL and BPCL contribute more than 80% of the total length of product pipeline network in the country.

Market Size

India has 26 sedimentary basins covering an area of 3.36 million square kilometres. The sedimentary basins of India, onshore and offshore up to the 400m isobath, have an aerial extent of about 2.04 million sq. km. In the deepwater beyond the 400m isobath, the sedimentary area has been estimated to be about 1.32 million square kilometres.

Primary energy demand is expected to nearly double to 1,123 million tonnes of oil equivalent, as Indias gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040.

India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. The consumption of petroleum products during April-January 2024, with a volume of 192.7 MMT, reported a growth of 5.2% compared to the volume of 183.1 MMT during the same period of the previous year.

Indias crude oil production stood at 2.69 MBPD during April- October 2023. Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation. Crude oil consumption is expected to grow at a CAGR of 4.59% to 500 million tonnes by FY40 from 223.0 MT in FY23.

Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and petrol covering 58% of Indias oil demand by 2045. Demand is not likely to simmer down anytime soon, given strong economic growth and rising urbanisation. Energy demand of India is anticipated to grow faster than energy demand of all major economies globally on the back of continuous robust economic growth. Moreover, the countrys share in global primary energy consumption is projected to increase to two-fold by 2035.

Government Initiatives and Investments

In July 2021, the Department for Promotion of Industry and Internal Trade (DPIIT) approved an order allowing 100% foreign direct investments (FDIs) under automatic route for oil and gas PSUs. The Government has allowed 100% Foreign Direct Investment (FDI) in upstream and private sector refining projects.

Ranked as Asias second-largest refiner, Indias oil and gas sector wields substantial influence across key economic corridors. The nation boasts an intricate network, comprising a 22,306 km natural gas pipeline and an 8,228 km petroleum pipeline.

Following are some of the major investments and developments in the oil and gas sector:

• In February 2024, Prime Minister, unveiled a strategic investment plan of US$ 67 billion for the Indian gas sector over next 5-6 years.

• In May 2022, ONGC announced plans to invest US$ 4 billion from FY22-25 to increase its exploration efforts in India.

• Indias oil and gas production is expected to achieve a mid- decade peak between 2023-2032, around 2027.

• As of March 1, 2024, India had 10,941 kms of crude pipeline network, with a capacity of 153.1 MMTPA.

• The total number of OMC retail outlets increased to 89,396, as of March 1, 2024, from 59,595 in FY17.

• Exports of petroleum products from India reached 51.4 MMT in FY24 until January 2024. The value of exports of crude oil and petroleum products stood at US$ 44.41 billion.

Ministry of Petroleum & Natural Gas mentioned that vast offshore acreage of more than 1 Million Sq. Km. has been made available in recent past for E&P operations. Currently only 10% of Indian Sedimentary Basin Area is under active exploration, however, with the initiatives of Government, more areas will come under exploration and it is estimated that after award of blocks under forthcoming OALP-IX and X Bid Rounds, about 5,60,000 Sq. Km. area will come under exploration by end of year 2024.

Under OALP VIII Bid Round, total 10 blocks were offered for bidding comprising an area of 34,364 Sq. Km., spread across 9 Sedimentary Basins and included 2 Onland blocks (both in Category-I Basin), 4 Shallow Water blocks (1 in Category-I and 3 in Category II/III Basins), 2 Deep Water blocks (both in Category II/III Basins) and 2 Ultra Deep-Water blocks (1 in Category-I and 1 in Category-II Basin). Total 13 bids were received for all 10 blocks. These 10 blocks were awarded to 4 Companies. The estimated investments in awarded blocks for committed exploration work programme is about USD 233 Million.

The first seven OALP Bid Rounds led to an award of 134 blocks, covering an area of about 2,07,691 Sq. Km. to leading E&P companies. Now, with the award of 10 more blocks under Round-VIII, a total of 144 exploratory blocks have been awarded under HELP regime covering an area of 2,42,055 Sq. Km.

In continuation to its aggressive acceleration of E&P activities and adhering to the prescribed timelines, the Government has now launched OALP Bid Round-IX for International Competitive

Bidding on 3rd January 2024. In this bid round, 28 blocks, with an area of approximately 1,36,596 Sq. Km., are on offer for bidding.

Various initiatives are taken by Government to bring down imports and increase the production of domestic crude oil. Discovered Small Field Policy, Reforms in Hydrocarbon Exploration and Licensing Policy for enhancing domestic exploration and production of Oil & Gas 2019, Natural Gas Marketing Reforms 2020, Policy to promote and incentivize enhanced recovery methods for Oil and Gas, Redevelopment of existing matured fields and development of new/marginal fields, Revival of Sick Wells, improving recovery factors through the implementation of Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) techniques, etc.

Government has also promoted wider private sector participation by streamlining approval processes including/ through electronic single window mechanism.

Road Ahead

Locating new fields for exploration 78% of the countrys sedimentary area is yet to be explored. Increasing the share of natural gas the government is working towards increasing the share of gas from 6.3% (July 2022) to 15% of the energy mix by 2030. Also, development of unconventional resources CBM fields in the deep sea.

India plans to increase its crude oil refining capacity by 77% to 438.65 million tons. The increase would happen gradually over the next 12 years as India seeks to meet its growing demand for fuel.

Deregulation of crude oil, enabling Exploration & Production Companies to offer domestically produced crude oil to private Oil and Gas Companies, without the requirement to extend the offer to Government-owned Oil and Gas Companies first. Under the new regime, Exploration & Production Companies would have the freedom to market and sell crude oil domestically on such commercial terms as may have been agreed contractually.

India also has an easy Revenue Sharing Model allowing potential investors to carve out areas they would want to explore, submitting Expression of Interests throughout the year on which bi-annual formal bidding processes would take place.

India was already the worlds second-largest crude oil net importer in 2023, having boosted imports by 36% over the past decade to 4.6 mb/d to meet rising refinery intake. Increased refining processing will lift crude oil imports further, to 5.8 mb/d by 2030, with major implications for Indias security of supply. Growing Demand

India is set to maintain its position as a key exporter of transportation fuels to markets in Asia and the Atlantic Basin. Continued investment in refining capacity and complexity will boost light and middle distillate production, even as the industry pivots further towards heavier and more sour crudes. Indias role as a global swing supplier has risen since 2022 as the loss of Russian product exports to European markets has increased the pull of Asian diesel and jet fuel westward. In 2023, India was the fourth-largest exporter of middle distillates globally and the sixth largest refinery product exporter at 1.2 mb/d. New refining capacity is forecast to boost product supplies to global markets to 1.4 mb/d through mid-decade before edging lower to 1.2 mb/d by 2030 given the steady rise in domestic demand.

Oil demand in India is projected to register a 2x growth to reach 11 million barrels by 2045. Consumption of natural gas in India is expected to grow by 25 billion cubic metres (BCM), registering an average annual growth of 9% until 2024.Energy demand of India is anticipated to grow faster than energy demand of all major economies on the back of continuous robust economic growth. Moreover, the countrys share in global primary energy consumption is projected to increase to two-fold by 2035.

Rapid Expansion

Indian oil companies are investing heavily in the refining sector to meet the rise in domestic oil demand. Over the next seven years, 1 mb/d of new refinery distillation capacity will be added - more than any other country in the world outside of China. Several other large projects are currently under consideration that may lift capacity beyond the 6.8 mb/d capacity that we expect so far.

India aims to commercialise 50% of its SPR (strategic petroleum reserves) to raise funds and build additional storage tanks to offset high oil prices. Indian government approved oil and gas projects worth Rs. 1 lakh crore (US$ 13.46 billion) in Northeast India. These projects are expected to be completed by 2025.

The industry is expected to attract US$ 25 billion investment in exploration and production.

Supportive FDI Guidelines

As India looks to reduce import dependency in the petroleum and hydrocarbon sector, policies with easier licensing requirements, revenue sharing models, FDI policy permitting 100% investment under the automatic route as well as the National Data Repository providing seamless access to data for interpretation and analysis have been implemented. This provides for a great scope for major players to invest in this sector with business-friendly policies and a substantial scope for growth.

Russia - Ukraine War - Impact on the INDIAN Oil & Gas industry

Russia-Ukraine war is accounting for 70.72% and 73.62% of the fluctuation in WTI and Brent crude oil prices, respectively. Furthermore, the war amplified oil price volatility and fundamentally altered the trend of crude oil prices.

Indias imports of Russian oil rose from a very low base at the start of 2022, increasing significantly throughout that year. Russian oil now accounts for nearly 20% of Indias annual crude imports, up from just 2% in 2021, according to Indian state-controlled lender. Indias purchases of seaborne crude from Russia have surpassed those by China.

The Onshore Helicopter Industry in India

The onshore helicopter industry in India is a dynamic and multifaceted sector that serves a wide array of purposes across various domains. From facilitating spiritual journeys to supporting critical operations, helicopters play a pivotal role in enhancing connectivity, safety, and efficiency. Key applications and developments in this sector are elaborated below.

Heli-Pilarimaae

Heli-pilgrimage, a niche segment within the broader aviation and tourism markets, caters to the needs of pilgrims who prefer the convenience and efficiency of air travel to reach remote and high-altitude religious sites. This market segment is particularly significant in India, where religious tourism is a major driver of economic activity, and many pilgrimage sites are in challenging terrains.

The heli-pilgrimage sector has seen significant growth, driven by the increasing demand for convenient access to remote and high-altitude pilgrimage sites. Helicopters offer a comfortable and time-efficient alternative to traditional travel methods, making it easier for devotees to reach sacred destinations such as Vaishno Devi, Amarnath, Kedarnath, and the Char Dhams. This sector is supported by various operators, including GVHL, which provides specialized services for these major pilgrimage routes, enhancing the overall pilgrimage experience.

By offering helicopter services, operators like GVHL address the logistical challenges of accessing these remote locations, ensuring a smoother and more comfortable journey for devotees. The services are designed to complement traditional pilgrimage experiences, providing a modern solution to age-old spiritual practices.

GVHL a Leader in Heli-Pilgrimage Services

GVHL has established itself as a prominent provider in the heli-pilgrimage market, offering services to several key pilgrimage destinations. The companys extensive experience and operational expertise are reflected in its current and past service offerings:

Current Services

• Vaishno Devi: Located in the Trikuta Mountains of Jammu and Kashmir, the Vaishno Devi Shrine attracts millions of devotees annually.

• Amarnath: The Amarnath Cave Shrine, also in Jammu and Kashmir, is another high-altitude pilgrimage destination.

• Kedarnath: Situated in the Garhwal Himalayas, Kedarnath is one of the Char Dhams and is known for its challenging terrain.

• Char Dham: This refers to the four sacred shrines of Yamunotri, Gangotri, Kedarnath, and Badrinath in Uttarakhand.

Impact and Benefits of heli-pilgrimage services

Helicopter services significantly enhance accessibility to remote and high-altitude pilgrimage sites, making it possible for pilgrims of all ages and physical conditions to undertake their spiritual journeys.

By reducing travel time and physical strain, these services offer a more comfortable and convenient alternative to traditional methods of reaching pilgrimage sites.

Air travel mitigates the risks associated with challenging terrain and adverse weather conditions, ensuring safer pilgrimages. The heli-pilgrimage sector contributes to the local economy by increasing tourist and pilgrimage-related activity in remote areas.

Airborne Geophysical Surveys

Airborne geophysical surveys involve the use of aircraft, typically helicopters or fixed-wing planes, equipped with specialized instruments to collect data about the Earths subsurface. These surveys are crucial for a variety of applications, including mineral exploration, environmental monitoring, and geological mapping. By flying over a survey area, the airborne instruments can measure various geophysical properties such as magnetic, electromagnetic, and radiometric signals, providing valuable insights into subsurface structures and resources.

Airborne geophysical surveys are essential for resource exploration and environmental monitoring. By utilizing helicopters equipped with advanced geophysical instruments, operators can conduct surveys over large and inaccessible areas with high precision. This technology is crucial for mineral exploration, geological mapping, and assessing environmental impacts. GVHL has been a pioneer in this field, offering services that include magnetic, electromagnetic, and radiometric surveys, contributing to more effective and efficient data collection.

GVHL Pioneering the Field and has established itself as a leader in airborne geophysical surveys in India. The companys extensive experience and expertise in helicopter operations uniquely position it to handle the complex logistics and technical demands of these surveys. Heres how GVHL is setting the standard:

• Advanced Technology: The company employs state- of-the-art helicopter platforms equipped with the latest geophysical sensors and data acquisition systems. This technology enables precise and high-resolution data collection, which is essential for accurate geological analysis.

• Operational Expertise: With a deep understanding of both aviation and geophysical science, GVHL ensures that the surveys are conducted with the highest levels of safety and efficiency. Their pilots and technical teams are skilled in managing the challenges of airborne operations, including navigating diverse terrains and environmental conditions.

• Comprehensive Surveys: The company conducts a wide range of geophysical surveys, including magnetic, electromagnetic, and radiometric surveys. These surveys are instrumental in identifying mineral deposits, assessing environmental impacts, and mapping geological features.

• Nationwide Coverage: GVHL has successfully carried out airborne geophysical surveys across various regions of India, from the mineral-rich areas in the north to the complex geological formations in the south. Their ability to operate in diverse and often challenging environments demonstrates their capability and adaptability.

• Data Quality and Integration: The high-quality data collected through these surveys provides valuable information for resource exploration and management. The data is meticulously processed and analysed to generate detailed geological maps and models, supporting informed decision-making for both public and private sector projects.

Impact and Benefits of airborne geophysical surveys

The surveys facilitate the efficient discovery of mineral resources, supporting the growth of Indias mining and resource sectors.

They help in assessing and mitigating environmental impacts, ensuring that resource extraction and other activities are conducted sustainably.

Detailed geological data aids in planning and constructing infrastructure projects by providing insights into subsurface conditions.

MHA Subsidy Scheme for North East States and Northern States (J&K, Himachal Pradesh, and Ladakh)

The Ministry of Home Affairs (MHA) has implemented a subsidy scheme to enhance connectivity in the North East and Northern states, including Jammu & Kashmir, Himachal Pradesh, and Ladakh. This initiative provides financial support for helicopter services, making air travel more affordable and accessible in these remote and challenging regions. The subsidy covers a significant portion of the costs, with the MHA funding 75% and state governments contributing the remaining 25%. This scheme is aimed at improving emergency response, accessibility, and overall connectivity in these strategically important areas. Funding Structure and Implementation for this initiative is strategically divided to ensure both effective implementation and sustainability. The Ministry of Home Affairs (MHA) contributes 75% of the total funding, reflecting its commitment to improving infrastructure in the region. The remaining 25% is provided by the state governments, which are responsible for coordinating the services within their respective jurisdictions. This collaborative funding model helps to maximize the impact of the initiative while sharing the financial burden between central and state authorities.

GVHL, a prominent player in the helicopter service industry, is at the forefront of this initiative. The company has been instrumental in delivering these subsidized services, ensuring high standards of operation and safety.

Currently, GVHL operates subsidized helicopter services in the states of Arunachal Pradesh and Manipur. These regions benefit from enhanced connectivity, which is crucial for residents who face logistical challenges due to the rugged terrain and limited road infrastructure.

Previously, the company provided similar services in Nagaland, where it played a key role in improving accessibility and emergency response capabilities.

Impact and Benefits of subsidized helicopter services

By providing a reliable and efficient mode of transportation, the services help overcome geographical barriers, ensuring better access to healthcare, education, and government services.

The substantial subsidy provided by the MHA significantly lowers the cost of air travel for residents, making it more affordable and accessible.

Improved air connectivity is crucial for timely medical evacuations and disaster response, potentially saving lives and providing critical support during emergencies.

Better connectivity can stimulate local economies by facilitating trade, access to markets, and employment opportunities, thus contributing to regional development.

Overall, the initiative enhances the quality of life for residents by reducing travel time and improving access to essential services.

LIDAR Survey Using Helicopters in India

LIDAR (Light Detection and Ranging) technology, involves emitting laser pulses from an airborne platform, such as a helicopter, to the ground. These pulses bounce back after hitting the surface, and the time it takes for the return signal to reach the sensor is used to calculate distances. This data is then used to create highly accurate and detailed 3D representations of the terrain and structures.

LIDAR, which has become a transformative tool in various fields including mapping, environmental monitoring, and infrastructure development. In India, LIDAR surveys conducted using helicopters offer a cutting-edge approach to collecting high-resolution geospatial data, overcoming the limitations of traditional survey methods.

Applications of Helicopter-Based LIDAR Surveys in India

LIDAR surveys provide detailed topographic data that supports urban planning, infrastructure development, and construction projects. This includes mapping road networks, assessing land use, and planning for new developments. The accuracy and detail provided by LIDAR data help in designing and implementing projects with greater precision.

LIDAR technology is used for environmental monitoring, including assessing forest canopy heights, vegetation health, and watershed management. In India, where diverse ecosystems require careful management, LIDAR surveys help in tracking changes and managing natural resources effectively. In disaster-prone areas, LIDAR surveys contribute to risk assessment and management. Detailed topographic maps and models generated from LIDAR data assist in planning for natural disaster response, flood management, and landslide risk assessment.

LIDAR technology is employed in the conservation of cultural heritage sites by creating accurate 3D models of historical structures and archaeological sites. This helps in monitoring site conditions, planning restoration activities, and preserving cultural heritage.

In agricultural regions, LIDAR data helps in mapping land use patterns, assessing soil properties, and managing irrigation systems. The detailed topographic information supports precision agriculture practices and improves land management strategies.

Underslung Cargo Helicopter Operations

Underslung cargo operations utilize helicopters equipped with specialized equipment to carry and deliver large or heavy loads that cannot be transported using conventional methods. The cargo is attached to the helicopter via a harness or rigging system, allowing for precise placement, and handling. This method is particularly useful in areas with limited infrastructure or difficult terrain.

Underslung cargo provides a versatile and efficient solution for logistics and infrastructure development in challenging environments. In India, this capability has proven invaluable across various sectors, including construction, disaster relief, and resource management.

Applications in India

In the construction and infrastructure sectors, underslung cargo operations facilitate the delivery of building materials and heavy equipment to sites that lack proper access roads. This includes remote construction projects, such as hydroelectric power plants, roads, and bridges, where traditional transport methods are challenging.

During natural disasters, such as floods, earthquakes, and landslides, underslung cargo helicopters play a crucial role in delivering emergency supplies, medical aid, and rescue equipment to affected areas. The ability to quickly deploy aid helps in managing disaster response more effectively.

The defence sector utilizes underslung cargo operations for transporting military equipment, supplies, and personnel in rugged and inaccessible regions. This capability is crucial for maintaining operational readiness and logistical support in diverse terrains.

Erecting transmission towers and poles in remote or inaccessible areas can be daunting. Helicopters equipped for underslung cargo transport can deliver these heavy and cumbersome components directly to the installation sites, bypassing the need for extensive ground transport infrastructure. During the construction of power plants and other energy infrastructure in remote locations, helicopters can efficiently deliver essential materials such as cement, steel, and other construction supplies. Underslung cargo helicopter operations play a critical role in the energy and power sector in India, offering solutions to logistical challenges posed by the countrys diverse and often inaccessible terrains.

State Governments for VIP/VVIP Flying

State governments across India utilize helicopters for VIP and VVIP transportation, ensuring secure and efficient travel for high-profile individuals. This service is crucial for managing the busy schedules of political leaders, dignitaries, and senior officials, allowing them to travel quickly between locations and attend multiple engagements in a single day. The provision of such services enhances operational efficiency and supports the smooth functioning of government and administrative activities.

Election Flying

Helicopters play a vital role in election campaigns, facilitating the swift and effective movement of political leaders, campaign staff, and essential materials. During election periods, helicopters are used to conduct rallies, oversee remote constituencies, and ensure that candidates and campaign teams can reach voters across diverse and often inaccessible regions. This capability is critical for effective campaign management and voter outreach.

Corporate Services

The corporate sector increasingly relies on helicopter services for executive travel, offering a premium and time-saving solution for business leaders. Helicopters provide a flexible and efficient mode of transport, enabling executives to attend meetings, site visits, and events across various locations without the constraints of conventional travel. This service supports business operations by reducing travel time and enhancing productivity.

RBI Operations

The Reserve Bank of India (RBI) utilizes helicopter services for the secure and efficient transportation of currency and other sensitive materials. This is particularly important for ensuring the safe delivery of cash to remote areas and for handling high- value transactions that require enhanced security measures. Helicopters offer a reliable solution for managing logistical challenges associated with currency operations.

Anti-Naxal Operations

Helicopters play a crucial role in anti-Naxal operations, supporting security forces in their efforts to combat insurgency and maintain law and order in affected areas. Helicopters provide rapid response capabilities, aerial surveillance, and logistical support, which are essential for navigating the challenging terrains and conducting operations in remote regions. This use of helicopters enhances the effectiveness of security operations and contributes to maintaining stability in conflict-prone areas.

Russia Ukraine War and its Impact on the Indian Helicopter Industry

Although, India had taken a neutral stance, yet it could not shield India from the ravages of a war of such scale.

Despite Indias limited direct exposure to the war, the combination of escalated supply disruptions and uncertainties due to the war deteriorated the situation and aggravated the challenges of the offshore helicopter industry in the country with escalated costs all around.

It had a direct adverse impact on all the related services especially the movement of aircrafts and ships which resulted in increased costs of transportation and insurance in addition to facing unprecedented delays in the mobilisation of helicopters to the clients, importing spare parts and undertaking overseas maintenance activities of the contractual helicopters.

GVHL - Outlook for Future Long Range Helicopters

Oil and Gas companies have started exploring options for deep- sea drilling and exploration of oil and gas on the countrys east (including Andaman) and west coasts for helicopters serving long range missions like H175 (650 NM), AW 189 (490 NM), H 225 Super Puma (450 NM), S 92 (540 NM), Bell 525 (580 NM) etc may be required in the near future.

Drones

The newly introduced UAV (Drone) technology is likely to play an important role in the future of offshore oil & gas drones can get safe access to difficult locations and can provide live streaming.

Drones can be utilized by oil and gas industry for remote monitoring, security and surveillance, maritime search and rescue, rust and corrosion detection, transport of mail, documents and material, gathering data for inspection purposes. Other applications include predictive maintenance of critical infrastructure assets, offshore wind farm & power stations, drilling rigs, pipelines & transmission network, oil spill detection & oil spill damage assessment, oil/gas pipeline surveillance incident mapping, gas leak detection, facility security etc.

Drones have myriad applications for specific onshore markets as well. These applications will continue to proliferate with evolution of technology and availability of better products.

Electric Vertical Take-Off and Landing (eVTOL)/ Electric Short Take-Off and Landing (eSTOL)

Advanced Air Mobility (AAM) has the potential to be a game-changer for Indias transportation landscape. Given the countrys unique challenges with traffic congestion in densely populated cities and regions that are poorly served by conventional transportation infrastructure, lowering urban pollution levels and enhance economic activities. For successful implementation, it will be crucial to address regulatory, safety, and infrastructure challenges. Developing comprehensive policies, ensuring robust safety standards, and creating the necessary infrastructure (like vertiports and charging stations) will be essential to integrating AAM into Indias transport ecosystem.

India declared its ambition to be a pioneer in the eVTOL revolution, with a vision of realizing this global dream by 2025. Initiatives like helicopter services linking Bengalurus airport and city in just 15 minutes showcase Indias readiness to embrace such transformative mobility solutions in urban environments. Long story short, we are witnessing the dawn of a transformative era poised to redefine how we move.

AAM is mainly focused on electrification, alternative propulsion and vertical lift technologies reducing reliance on airports and runways, and an entrepreneurial breed of companies pioneering aircraft concepts like eVTOLs (electric vertical take- off and landing vehicles).

Indias has immense opportunity with many potential domestic routes identified between existing airports by industry experts,

Indias untapped potential for AAM is staggering. eVTOL market opportunities underscore the vast scope for new mobility solutions to penetrate underserved regions.

With the first operations expected to begin in 2025, the global Urban Air Mobility market is projected to grow at 30% annually till 2040. In Indian this demand is fueled by urban congestion, coupled with the pressing need for enhanced regional connectivity and efficient logistics to support the nations booming e-commerce sector.

AAM requires a strategic approach focused on certification and production of new aircraft designs, development of necessary infrastructure for the Take-Off and Landing (eVTOL) aircraft to utilise beyond existing airports and helipads called vertiports, also requiring charging stations for the battery-powered eVTOLs.

Establishing a robust regulatory framework specific to eVTOL certification and operational rules must be put in place to ensure the safety and security of AAM operations.

A new air space management rules and systems will need to be developed to safely manage flight activity over urban areas amongst tall buildings. Movements of many small aircraft and autonomous drone operations in the same airspace, will be a critical challenge.

Public acceptance is crucial for the successful integration of AAM into society, including noise intrusion is avoided, something which the new breed of eVTOLs are being specifically designed to address.

Cautionary Statement

Statements in this Report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, figures and expectation may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied.

The company assumes no responsibility in respect of forward- looking statements herein, which may undergo changes in future on the basis of subsequent developments, information or events.