New Delhi, June 4 (APAC Media): The Union Cabinet has approved multiple initiatives spanning aviation, clean mobility, and highway infrastructure, with a combined investment exceeding Rs. 39,290.6 crore.
Through these investments, the government seeks to safeguard airlines from fuel price volatility, tackle air pollution in Delhi-NCR, and improve road connectivity across key economic corridors.Â
Key Approvals
Aviation Sector Gets Rs. 10,000-Crore Lifeline
In a major boost to India’s aviation sector, the Cabinet has approved a Rs. 10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund aimed at shielding airlines from volatile global fuel prices. The move comes amid rising energy costs linked to the ongoing West Asia crisis.
Under the scheme, oil marketing companies (OMCs) will receive interest-free advances from the government to maintain stable ATF prices for scheduled Indian airlines. The mechanism is expected to reduce airlines’ exposure to sudden fuel price spikes, bringing greater predictability to operating costs. The government will compensate OMCs when international fuel prices exceed a benchmark level, with recoveries planned when prices decline.
Delhi-NCR Pollution Battle Gets Fresh Push
The Cabinet also approved a two-year vehicle replacement programme worth Rs. 9,585 crore to curb air pollution in the Delhi-NCR region. The initiative will encourage owners of BS-IV and older trucks and buses to switch to BS-VI-compliant or electric vehicles.
The scheme includes Rs. 5,041 crore in central funding and an estimated Rs. 1,601 crore in tax concessions from participating states. It will be implemented through the National Capital Region Planning Board in coordination with Delhi, Haryana, Rajasthan, and Uttar Pradesh.
Multiple Highway Projects Cleared
In a significant infrastructure push, the government has also approved four major national highway projects worth more than Rs. 24,200 crore. The projects include an Rs. 8,300.79-crore coastal highway between Rameshwar and Paradeep in Odisha, a Rs. 7,597.16-crore widening project on NH-63 and NH-563 in Telangana, a Rs. 4,415.60-crore upgrade of NH-347B in Madhya Pradesh, and a Rs. 3,936.05-crore four-laning project on NH-31 and NH-231 in Bihar.
The projects are expected to improve freight movement, strengthen regional connectivity, and support economic growth across multiple states.
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