Union Cabinet approves ₹10,000 crore Aviation Turbine Fuel (ATF) price cap scheme

Key facts

• The Union Cabinet, chaired by Prime Minister (PM) Narendra Modi, approved a ₹10,000 crore support scheme to cap Aviation Turbine Fuel (ATF) prices for domestic airlines.
• The initiative will reimburse state-run oil companies for selling jet fuel at a fixed rate of ₹115 per litre for both domestic and international flights.
• The government will provide interest-free advances to cover the under-recoveries of refiners, representing the gap between market prices and the reduced rates charged to airlines.
• The price stabilisation mechanism will operate for a period of 36 months with a provision for annual review or until the advance amount is fully settled.
• All proceeds recovered from the scheme once global fuel prices moderate will be returned to the Consolidated Fund of India.
• The Union Cabinet approved four National Highway (NH) projects with a total expenditure of ₹24,249 crore to improve connectivity and support economic activity.
• The approved NH projects include a coastal highway in Odisha at an estimated cost of ₹8,300 crore, two projects in Madhya Pradesh, and widening projects in Telangana and Bihar.
• A vehicle replacement scheme for the Delhi-NCR region was cleared to incentivise replacing Bharat Stage-IV (BS-IV) or older trucks and buses with BS-VI or electric vehicles (EVs).