Thiruvananthapuram, October 7, 2026 (Yes Punjab News)
The Kerala government has decided not to renew its helicopter lease agreement with Chipsan Aviation, ending the existing arrangement under which the state pays a fixed monthly rental for the aircraft.
The decision was conveyed before the Lokayukta on Tuesday by the Director General of Prosecution (DGP) during the hearing of a petition filed by K.M. Shajahan.
The DGP also told the Lokayukta that Chief Minister V.D. Satheesan’s recent visit to Malappuram was not undertaken for any personal purpose. The case has been posted for further hearing on November 3.
The helicopter lease had been a contentious political issue during the previous LDF government. The state had initially entered into an agreement with Pawan Hans before moving to Chipsan Aviation.
Under the existing arrangement, the government pays Rs 80 lakh a month for 25 flying hours, with an additional Rs 90,000 charged for every hour beyond the contracted flying time. The monthly rental is payable regardless of whether the helicopter is used.
The UDF, then in Opposition, had strongly criticised the arrangement, calling it an unnecessary financial burden on the state exchequer.
The issue returned to the political spotlight after the change of government when Satheesan, who had earlier criticised the use of a leased helicopter, also travelled in one after becoming Chief Minister.
With the existing contract nearing expiry, a proposal had been considered to continue the arrangement. A recommendation supported renewal on the grounds that floating a fresh tender could lead to a higher financial commitment.
Chipsan Aviation had subsequently offered to provide the helicopter on an as-needed basis after the current contract expired, at a rate of Rs 4 lakh per flying hour.
The government has now opted against renewing the lease, marking a departure from the existing fixed-rental model and potentially bringing an end to a helicopter arrangement that had remained a politically sensitive issue in Kerala.
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