Kerala ends helicopter lease with Chipsan Aviation, scraps ₹80 lakh/month deal
Synopsis
Kerala has pulled the plug on its ₹80 lakh-a-month helicopter deal with Chipsan Aviation — a contract that dogged the previous LDF government and embarrassed the UDF when Chief Minister Satheesan, a former critic of the arrangement, ended up using one himself. The government confirmed the decision before the Lokayukta on 6 October, drawing a politically charged chapter to a close.
Key Takeaways
The Kerala government has decided not to renew its helicopter lease with Chipsan Aviation , confirmed before the Lokayukta on 6 October 2026 .
The existing contract costs ₹80 lakh per month for 25 flying hours , with ₹90,000 charged per additional hour — payable even when the helicopter is unused.
Chipsan Aviation had offered an as-needed rate of ₹4 lakh per flying hour after contract expiry, but the government declined.
The arrangement had been a major political flashpoint during the previous LDF government; the UDF had criticised it in opposition.
The DGP also clarified that Chief Minister V.D.
Satheesan's visit to Malappuram was not for personal purposes.
The Lokayukta hearing on the petition by K.M.
Shajahan is next scheduled for 3 November .
The Kerala government has decided against renewing its helicopter lease contract with Chipsan Aviation, effectively ending an arrangement that cost the state exchequer ₹80 lakh per month for 25 flying hours. The decision was communicated on Tuesday, 6 October 2026, before the Lokayukta in Thiruvananthapuram, where the Director General of Prosecution (DGP) made the government's position clear during a hearing.
What Happened at the Lokayukta
The hearing was triggered by a petition filed by K.M. Shajahan. During the proceedings, the DGP confirmed that the government would not be renewing the Chipsan contract. The DGP also clarified 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 3 November.
The Controversy Behind the Contract
The leased helicopter arrangement emerged as a major political controversy during the tenure of the previous Left Democratic Front (LDF) government. Initially, the state had entered into an agreement with Pawan Hans before switching to Chipsan Aviation. Under the contract, the monthly rental of ₹80 lakh was payable regardless of whether the helicopter was actually used, with an additional ₹90,000 charged for every flying hour beyond the contracted 25 hours.
The United Democratic Front (UDF), while in opposition, had repeatedly criticised the deal as an unnecessary burden on public finances. The controversy resurfaced after the change of government, when Chief Minister Satheesan — who had himself previously questioned the helicopter arrangement — was seen using a leased helicopter in his official capacity.
Why the Contract Was Not Renewed
As the existing contract neared its expiry, a proposal to renew the agreement was placed before the government. A recommendation reportedly favoured continuation, arguing that floating a fresh tender could lead to a higher financial commitment. Chipsan Aviation had subsequently offered an as-needed arrangement at ₹4 lakh per flying hour after the contract's expiry. The government, however, chose to discontinue the arrangement entirely.
What This Means Going Forward
The decision marks a significant policy shift, potentially closing one of the most politically contentious aviation-related expenditure debates in recent Kerala governance. It remains to be seen whether the state will procure helicopter services through a fresh tender process or adopt a different operational model for official aerial travel. The Lokayukta will take up the matter again on 3 November.
Point of View
Making his own use of the arrangement after taking office a visible contradiction. Ending the contract now allows the UDF government to close that credibility gap, even if belatedly. What remains unanswered is what replaces it — a fresh tender risks a higher cost, as officials themselves noted, while no aerial arrangement at all may be impractical for a state with difficult terrain. The Lokayukta scrutiny adds a layer of accountability that neither the previous nor current government can easily dismiss.
NationPress
6 Oct 2026
Frequently Asked Questions
Why has Kerala decided to end the Chipsan Aviation helicopter lease?
The Kerala government has decided not to renew the helicopter lease contract with Chipsan Aviation as it nears expiry, moving away from an arrangement that cost ₹80 lakh per month regardless of usage. The decision was announced before the Lokayukta on 6 October 2026 and ends one of the most politically contested aviation contracts in recent state governance.
How much did the Kerala helicopter lease with Chipsan Aviation cost?
The contract required the state to pay ₹80 lakh per month for 25 flying hours, with an additional ₹90,000 charged for every hour flown beyond that limit. Crucially, the monthly rental was payable even if the helicopter was not used at all.
What was the political controversy around the helicopter deal?
The helicopter arrangement became a major flashpoint during the previous LDF government, with the UDF — then in opposition — calling it an unnecessary burden on the exchequer. The controversy deepened when Chief Minister V.D. Satheesan, who had criticised the deal as an opposition leader, used a leased helicopter after assuming office.
What alternative did Chipsan Aviation offer after the contract expired?
Chipsan Aviation offered to provide the helicopter on an as-needed basis at ₹4 lakh per flying hour after the expiry of the existing contract. The Kerala government has declined this offer as well, opting not to continue any arrangement with the company.
When is the next Lokayukta hearing on the Kerala helicopter case?
The Lokayukta has posted the case — filed by petitioner K.M. Shajahan — for further hearing on 3 November 2026.
