The chief minister emphasised that the helicopter service was crucial due to problems in road communication and absence of other means of transport like inland water and railway.
Speaking at a function at the Thuampui helipad near here, he said that the safety of the passengers should be given top priority by Pawan Hans, which provided the service.
Out of the Rs 1,308 lakh for annual wet leasing, 75 per cent would be borne by the Union Home Ministry and the matching contribution of 25 per cent would be paid by the state government.
Lal Thanhawla, his wife Lal Riliani, home minister R. Lalzirliana, Managing Director of Pawan Hans M P Singh and Joseph Lalhlimpuia MLA were on board the inaugural flight between Thuampui helipad and Lunglei.
An official statement said that the helicopter service, linking nine towns, would be available for people from August 16 and the fare would be Rs 50 per minute.