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Rupee turbulence makes copter for CM Devendra Fadnavis a costlier affair

The state government decided to buy Sikorsky S76-D helicopter after crash landing of its chopper Sikorsky S-76C++ in Latur in May last year.

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Chief Minister Devendra Fadnavis
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Weakening rupee vis a vis US dollar will mean Maharashtra government will be forced to pay more for the purchase of helicopter that the Maharashtra government had ordered for the use of Chief Minister Devendra Fadnavis and other Very Very Important Persons (VVIPs).

In a corrigendum issued on Tuesday, the state's general administration department has stated that with rupee depreciating from the date when the government signed the deal with Sikorsky, a Lockheed Martin subsidiary company, the state will have to provide for Rs 145.27 crore instead of Rs 127.11 crore.

The government has projected the new provision assuming that the rupee will touch 80 against one US dollar, almost Rs 18 crore more.

The government has already made 20 per cent advance payment of Rs 25.42 crore to Sikorsky in US dollar based on the then-prevalent rate. With the proposed revision in dollar rate, the advance payment has risen to Rs 29.05 crore. The government will have to pay additional Rs 3.63 crore.

The state government decided to buy Sikorsky S76-D helicopter after crash landing of its chopper Sikorsky S-76C++ in Latur in May last year. The Sikorsky S-76C++ was carrying chief minister Devendra Fadnavis and five others who escaped miraculously despite substantial damage to the chopper.

Currently, the state government owns two helicopters and two aircraft. Of the two, the S76C++ was in service, while another, Dauphin AS 365 N-3 flew till 2011 and was grounded for want of repairs. The latter was bought at Rs 23 crore in 2001.

Of the two aircraft, the Cessna Citation 560XLS was bought in 2013 and is in service, while the Superking AB 300 has been grounded after 11 years.

Valsa Nair-Singh, Principal Secretary Civil Aviation said that the government has to pay as per the price of the dollar on the day of payment and hence the additional provision was being made. She claimed that the first installment of the payment which is 20 per cent of the price was being paid this week and entire payment is spread over 18 months' time and hence the sanction was sought in advance instead of seeking on a recurring basis..

The opposition pounced on the GR saying it was an indication how the rupee was going to behave. "Government orders such as these create panic in the mind of foreign investors. They will try to exit from Indian markets which will devalue the currency further. It is one thing to make provision for more funds and another to admit that the rupee will fall further," said NCP Spokesperson Nawab Malik.

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