The Union Cabinet today gave its approval to the proposal for continuation of helicopter services by Pawan Hans Limited (PHL) for inter-island connectivity in the Lakshadweep Islands for a further period of five years with effect from 01.04.2012 to 31.03.2017.

The Union Cabinet also gave its approval to the proposal for meeting the cost of hiring/chartering helicopters from PHL by provision of Central Government subsidy of the order of Rs. 1,900.64 lakh approximately per annum. Charges towards Service Tax and foreign exchange fluctuation will be met by the administration of the Union Territory (UT) of Lakshadweep/Ministry of Home Affairs for this purpose. 

The PHL has been providing helicopter services in the UT of Lakshadweep since February 1987. This arrangement had been extended for five years beyond 31.03.2007. Helicopter services have become a part of the transport and communication system in the Lakshadweep Islands during the last 25 years for inter-Island movement, particularly during the monsoon when movement of ships and ferries is severely restricted. Helicopter services also act as a feeder service for connecting airline passengers to and from Agatti.