Thiruvananthapuram : In a major relief to the state exchequer amid severe financial constraints, the Kerala government has officially terminated its leased helicopter contract. The three-year contract with Chipsan Aviation came to a close on September 19, 2026, with the state deciding not to renew it further. Following this single decision, the government has saved ₹80 lakh in the very first month, calculated between September 20 and October 20.
A Look at the Expenses
Over the past three years, the state government has spent a staggering ₹46.36 crore on renting the helicopter. Under the terms of the agreement with Chipsan Aviation, the base rental alone was fixed at ₹80 lakh per month, amounting to ₹9.60 crore annually.
Additionally, the contract included heavy extra charges: for every hour flown beyond the monthly allotted 25 hours, the government had to shell out an extra ₹90,000 per hour. Because this hefty amount was mandatory regardless of whether the helicopter was actually utilized or not, the government chose to pull the plug on the contract to curb unnecessary expenditures during a financial crunch.
