TEHRAN -- National Iranian Oil Company (NIOC) helicopter flying firm, the largest of its kind in the country, is to be privatized.

The news was disclosed here Saturday by the organization's Chairman of Board of Directors Jamshid Qanbari.

He told IRNA that the company is one of the companies on the government's list of firms to be privatized.

He said the operation is high risk adding that the purchase of the firm by the private sector needs significant capital.

Qanbari also stated that the primary reason for privatization of state-owned firms is because of their loss making operations. The NIOC-affiliated arm has gone through re-organization turning around its losses to profits. The organization does not use government subsidies, he said, adding "The company, when privatized is not under any obligation to provide service to the Oil Ministry-affiliated organs as well as the NIOC."

Minister of Economy and Finance Tahmasb Mazaheri said here earlier in December that privatization will be expedited in Iran once amendments are made to the Third Five-Year Economic Development Plan.

He said that privatization has been decided upon by the government and Majlis and as one of the important pillars of strategic economic reforms in Iran would undoubtedly been implemented.

He was pleased with that 'positive' trend of privatization in Iran, despite certain legal barriers.

The minister said partnership securities issuance method would change in favor of liquidity control and economic promotion so as not to serve against investment. He said the policies would be reflected in next year's budget law.

However, Head of Privatization Organization Mahdi Aliakbar has previously said that government has been able to meet only about one sixth of its privatization targets in the first eight months of the year (started March 21).

Aliakbar told the third privatization workshop that only 1.43 Billion rials worth of shares were ceded to applicants during the period, while the budget law for current year stipulated a figure of six billion rials.

He blamed the failure to materialize the objective on the non-cooperation by state-run organizations.