NEW DELHI, June 3: The Union Cabinet on Wednesday approved a ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund to support Indian airlines amid a sharp rise in global fuel prices triggered by the West Asia crisis.
Briefing the media, Union Information and Broadcasting Minister Ashwini Vaishnaw said the fund would function as a self-sustaining revolving mechanism to help stabilise ATF prices for scheduled Indian carriers operating domestic and international services.
He said the decision is expected to safeguard around 77 lakh jobs linked to the aviation sector. International ATF prices have reportedly surged from ₹60.5 per litre in March to ₹142 per litre in May, significantly increasing operating costs for airlines.
Under the scheme, the government will provide a one-time interest-free advance of up to ₹10,000 crore to Oil Marketing Companies to facilitate ATF price stabilisation.
The Cabinet also approved a scheme to support the replacement of old trucks and buses in the Delhi-NCR region through the National Capital Region Planning Board (NCRPB). The two-year programme will be implemented in collaboration with Delhi, Haryana, Rajasthan and Uttar Pradesh and aims to reduce air pollution while promoting cleaner mobility.
Vaishnaw said nearly two lakh trucks and 16,000 buses are expected to be replaced under the initiative.
In another decision, the Cabinet approved the construction of a new coastal highway connecting Rameshwar and Paradeep. The project, spanning over 163 kilometres, will be developed at an estimated cost of more than ₹8,300 crore, the minister said. (Agencies)
