The Union Cabinet, chaired by Prime Minister Narendra Modi in New Delhi, has approved an interest-free advance of Rs 10,000 crore for oil companies to help contain the impact of rising aviation fuel prices.
The decision comes as aviation turbine fuel prices have increased about 2.5 times in the backdrop of the West Asia conflict. The government said the support is aimed at preventing an undue burden on domestic air travellers.
Union Minister Ashwini Vaishnaw said the Centre wants to ensure that domestic passengers are not hit by sharp fare increases, noting that air travel has become a key mode of transport for many middle-class families. He added that while fare controls helped stabilise domestic airlines, oil companies faced severe pressure.
In the same Cabinet meeting, approvals were granted for six major projects worth Rs 39,290 crore. The Cabinet also cleared a plan to phase out old trucks and buses operating in the Delhi-NCR region and replace them with more environment-friendly vehicles, with Rs 9,585 crore allocated over the next two years.
Vaishnaw also pointed to operational challenges for Indian carriers on international routes, including longer diversions due to regional tensions, which raise costs and disrupt services. The measures are expected to address some of these pressures and improve overall air transport services.
