Cabinet clears ATF price stabilization fund to support Indian airlines

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved six major decisions related to infrastructure, environment and ATF price stabilization fund and Coastal highway project. Breifing media in New Delhi, Union Information and Broadcasting Minister Ashwini Vaishnaw said,  a one-time budgetary support package of up to Rs10,000 crore to help stabilize Aviation Turbine Fuel (ATF) prices for scheduled Indian airlines affected by soaring global fuel costs triggered by the ongoing West Asia crisis. The assistance will be provided to Oil Marketing Companies (OMCs) in the form of interest-free advances through the Ministry of Petroleum and Natural Gas. The fund aims to cushion airlines from unprecedented fuel price volatility while ensuring uninterrupted domestic and international air connectivity.A key feature of the initiative is the introduction of a fixed-price ATF arrangement, which is expected to provide greater predictability in fuel costs and reduce airlines’ exposure to sudden price spikes. Participating airlines will procure ATF exclusively from OMCs under a memorandum of understanding (MoU) involving the Ministries of Civil Aviation and Petroleum and Natural Gas, he said.

Delhi: Union Minister Ashwini Vaishnaw says, "Today, under the leadership of Prime Minister Narendra Modi, very important decisions have been taken in the Cabinet. I will share details about them. Six major decisions have been taken. The first decision is regarding the price of… pic.twitter.com/bSbOjG5qHj

— IANS (@ians_india) June 3, 2026

The Cabinet also  approved a two-year scheme aimed at replacing older trucks and buses operating in the Delhi-NCR region with cleaner BS-VI-compliant or electric vehicles. The initiative will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and will be implemented by the Ministry of Road Transport and Highways and the Ministry of Petroleum and Natural Gas in coordination with the governments of Delhi, Haryana, Rajasthan and Uttar Pradesh. Owners of BS-IV and older vehicles will be encouraged to replace them with BS-VI-compliant or electric vehicles. BS-III and older vehicles will have to be scrapped at registered vehicle scrapping facilities, while BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities and towns. In Delhi, light goods vehicles purchased under the scheme must be electric, while buses will have to be either BS-VI CNG or electric.
After the union Cabinet approval, in Odisha, a new coastal highway connecting Rameshwar and Paradeep will be constructed at a cost of Rs8,300.79 crore. The highway will be constructed in two packages. The first package comprises a 79.4-kilometre four-lane access-controlled highway between Rameshwar and Konark, while the second package involves the construction of an 80.78-kilometre two-lane highway with paved shoulders between Konark and Paradeep.