New Delhi: The Union Cabinet on Wednesday approved a series of major policy and infrastructure decisions aimed at strengthening transport connectivity, supporting the aviation sector amid global fuel price volatility, and accelerating the transition to cleaner mobility in the National Capital Region.
Among the key decisions was the approval of a one-time budgetary support of up to Rs. 10,000 crore for Oil Marketing Companies (OMCs) to help stabilise Aviation Turbine Fuel (ATF) prices for scheduled Indian airlines. The move comes against the backdrop of sharp increases in global fuel prices linked to the ongoing West Asia crisis, which has significantly raised operating costs for airlines, according to an official statement.
Under the approved mechanism, the government will provide interest-free advances to OMCs to compensate for losses arising from elevated international ATF prices. The arrangement is expected to offer greater predictability in fuel costs for airlines operating both domestic and international services while helping maintain air connectivity and moderate fare volatility for passengers.
The Cabinet noted that ATF prices have risen sharply in recent months and now account for a substantial share of airline operating expenditure. The situation has been further complicated by longer flight routes and higher fuel consumption following restrictions affecting access to Pakistan’s airspace for Indian carriers on several international sectors.
In another major decision, the government approved a two-year clean mobility programme for the Delhi-NCR region with a financial outlay of Rs. 9,585 crore. The initiative seeks to encourage owners of older trucks and buses to replace their vehicles with cleaner BS-VI-compliant models or electric vehicles.
The scheme is expected to benefit more than two lakh vehicle owners across Delhi, Haryana, Rajasthan, and Uttar Pradesh. Authorities believe the transition to newer vehicles will significantly reduce transport-sector emissions, a major contributor to air pollution in the region. The programme includes interest subvention on loans, fuel vouchers, tax concessions, and manufacturer discounts to encourage vehicle replacement.
The Cabinet also cleared two major national highway projects in Bihar and Telangana aimed at easing congestion and improving logistics efficiency.
In Bihar, the government approved the upgradation of the 143.529-km Khagaria-Purnea section of NH-31 and NH-231 to four-lane standards at Rs. 3,936.05 crore. The project is expected to address bottlenecks across Khagaria, Bhagalpur, Katihar, and Purnia districts while reducing travel time and improving connectivity to key economic and logistics centres. A greenfield bypass around Purnea city will also be developed as part of the project.
The Cabinet Committee on Economic Affairs further approved the widening of the Armoor-Jagtial-Mancherial section of NH-63 and the Jagtial-Karimnagar section of NH-563 in Telangana. The project, with a combined investment of Rs. 7,597.16 crore, will cover nearly 191 km and provide four-lane connectivity through several congestion-prone stretches. The upgraded corridor is expected to improve passenger and freight movement while reducing travel time across key districts of the state.
According to the government, all the approved projects align with the PM GatiShakti framework and are intended to improve logistics efficiency, enhance regional connectivity, and support economic activity.
