Maharashtra GR says chopper purchase costlier by Rs 18 crores; INR at 80 per dollar

Last Updated: Wed, Sep 12, 2018 18:16 hrs
&#8203;Helicopters for VVIPs - a Highly Convoluted Deal<br><br>

The Rupee's constant weakening has turned costlier the ambitions of many students wanting to pursue education abroad. It has also lead to a constant ire among the middle-class as well as corporate depending upon costlier imports.

The latest to fall victim to the Rupee's weakness is the State government of Maharashtra.

The state government will have to shell out an additional Rs 17.28 crores for buying a chopper that it intended to ferry VIPs around the state.

According to the state's website that lists the Government's resolutions, the original price for purchasing a S76-D chopper from Connecticut based Sikorsky Aviation has been reported at $1,81,58,825.

In May, the amount was estimated at (Rs 1.27 billion), at the rupee rate at Rs 70 per dollar.

There is no difference in the price, but the USD-INR volatility has meant that the state government will have to bear the price for rupee weakening, according to the three page resolution.

The resolution updated on Tuesday informed that the Maharashtra Government had revised its estimate for procuring US-based Sikorsky company's helicopter for VIP travel "in view of the increasing rate of dollar as compared to rupee".

"Due to increased rate of dollar as compared to rupee, the price has now been revised to Rs 1.45 billion considering the rupee rate at Rs 80 per dollar," it added.

Surprisingly, the GR speaks of Forex rate of Rs 80, even as traders and forex dealers, as well as reports spoke of Rupee trading at levels of Rs 72.

Also Read: Rupee recovers from record low of 72.91/$

In July, Connecticut based Sikorsky Aviation announced the sale of an S-76D aircraft to Maharashtra Government, the first sale of an S-76D helicopter in India.

The delivery is scheduled in 2019, according to company officials.

Here is the Government Resolution (The content is in Marathi).

To read the resolution click here (opens in different tab).

Please Note: The lead image in this story is a file picture used for representational purposes only.

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