Indian Government Approves ₹10,000 Crore Fund to Stabilize Jet Fuel Prices and ₹24,249 Crore for Highway Projects
Cabinet approves Rs 10,000 crore fund to cap jet fuel prices; clears Rs 24,249 crore highway projects
Image: The Economic Times
The Indian government has approved a ₹10,000 crore fund to stabilize aviation turbine fuel prices amid rising global crude oil costs, benefiting domestic airlines. Additionally, ₹24,249 crore has been allocated for various highway projects to enhance connectivity and economic activity.
- 01The aviation turbine fuel price stabilization program will reimburse oil companies for losses incurred from selling jet fuel below market rates.
- 02Jet fuel prices for airlines are fixed at ₹115 per litre, benefiting from the fund if global crude prices rise further.
- 03The government will compensate oil marketing companies whenever international prices exceed the fixed benchmark.
- 04Four National Highway projects have been approved, totaling ₹24,249 crore, including a coastal highway project in Odisha costing ₹8,300 crore.
- 05A vehicle replacement scheme in Delhi-NCR aims to reduce air pollution by incentivizing the replacement of older trucks and buses with cleaner vehicles.
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In response to rising global crude oil prices, the Indian government has approved a ₹10,000 crore fund to stabilize aviation turbine fuel (ATF) prices. This initiative, cleared by the union cabinet led by Prime Minister Narendra Modi, aims to support domestic airlines by reimbursing oil companies for losses incurred when selling jet fuel below market rates. The fixed price for jet fuel is set at ₹115 per litre, with the fund designed to shield airlines and passengers from potential fare increases due to global price surges. The government will compensate oil marketing companies (OMCs) when international prices exceed this benchmark, with a recovery mechanism in place once prices normalize. Additionally, the cabinet has approved four National Highway projects costing ₹24,249 crore to enhance connectivity and economic activity, including a significant coastal highway project in Odisha. A vehicle replacement scheme for the Delhi-NCR region will also incentivize the transition to cleaner vehicles, addressing air pollution concerns.
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The fund will help stabilize jet fuel prices, benefiting airlines and air passengers by preventing fare increases.
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