The Union Cabinet has approved a package of projects and initiatives worth ₹39,290 crore (approx $4 billion) covering aviation fuel price management, urban transport reforms and national highway infrastructure development.Cabinet DecisionAmount (₹ Cr)1ATF Price Stabilisation Fund10,0002Scheme for phasing out old trucks and buses in Delhi5,0413Coastal Highway: Rameshwar – Konark – Paradeep8,30144-laning of Khagaria–Purnea section of NH-31 & NH-231 in Bihar3,93654-laning of sections of NH-63 & NH-563 in Telangana7,5976Upgradation of NH-347B in Madhya Pradesh4,415TotalApproved Outlay39,290
Among the key decisions is the creation of a ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund. Briefing reporters, Union Minister Ashwini Vaishnaw said ATF prices had risen 2.5 times, prompting the government to cap prices at ₹75.6 per litre for domestic operation.
Shares of Interglobe Aviation, which operates India’s largest private airline IndiGo, jumped to the day’s high after the announcement. Jet fuel accounts for 40% of an airline’s operating expenditure.
A Massive Overhaul Of Buses And Trucks In The National Capital RegionThe Cabinet also approved a ₹5,041 crore scheme to phase out old trucks and buses in Delhi, as part of efforts to modernise the capital’s transport fleet.The programme targets the replacement of over 1.9 lakh trucks and 16,000 buses with BS-VI-compliant or electric vehicles in a bid to curb vehicular pollution.Under the scheme, eligible vehicle owners will receive a 5% interest subvention on vehicle loans, monthly fuel vouchers for five years through oil marketing companies, and discounts from automobile manufacturers.State governments will also offer 100% motor vehicle tax concessions and waive registration fees for new vehicles, provided owners scrap their old vehicles or move them to non-NCAP cities before purchasing BS-VI or electric replacements.Also Read: Cabinet approves ₹5,041 Cr to phase out buses, trucks to curb Delhi pollution; check how to claim benefitsNew Infrastructure Projects In At Least Three StatesOn the infrastructure front, the government cleared several major highway projects across states. These include the ₹8,301 crore Rameshwar–Konark–Paradeep Coastal Highway project, the ₹3,936 crore four-laning of the Khagaria–Purnea section in Bihar, and the ₹7,597 crore four-laning of NH-63 and NH-563 in Telangana.In addition, the Cabinet approved the upgradation of NH-347B in Madhya Pradesh at an estimated cost of ₹4,415 crore.The decisions form part of a broader push to strengthen transport infrastructure, support mobility and address volatility in aviation fuel prices.(Edited by : Sriram Iyer)First Published: Jun 3, 2026 3:23 PM IST
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