The decision was taken at a meeting of the cabinet, chaired by Chief Minister Devendra Fadnavis, here.
The government will save Rs 100 crore it would have otherwise spent on acquiring a new helicopter, an official said after the meeting.
The Dauphin, at present grounded, was acquired in 2001 for Rs 23 crore. In 2010 the state government was looking for two new twin-engine helicopters to fly VIPs by replacing the Dauphin.
The Directorate of Aviation of the Maharashtra Government had in 2010 invited sealed quotation from manufacturers too.
The state government now uses a Sikoesky S76C chopper, acquired in December 2011, to ferry VIPs.