The Union Cabinet on Wednesday approved a comprehensive package of projects and schemes valued at Rs 39,290 crore, covering aviation, highway infrastructure, and transport modernisation. The largest allocation is directed towards the creation of an Aviation Turbine Fuel (ATF) Price Stabilisation Fund, aimed at mitigating volatility in fuel prices and providing greater predictability for airlines.
Key Projects and Allocations
According to details of the Cabinet decisions, the government approved a Rs 10,000 crore ATF Price Stabilisation Fund, which is designed to address fluctuations in aviation fuel prices, a major operating cost for airlines. This fund is expected to help stabilise ticket prices and improve the financial health of the aviation sector.
In addition, the Cabinet approved a Rs 8,301 crore coastal highway project connecting Rameshwaram, Konark, and Paradip. This project is one of the largest infrastructure approvals in the package and is expected to strengthen connectivity along the eastern coastline, improving transport links between key coastal regions.
Another major approval is Rs 7,597 crore for four-laning sections of NH-63 and NH-563 in Telangana. This project aims to enhance highway capacity and improve freight and passenger movement in the state.
Delhi-NCR Vehicle Replacement Scheme
Among the key transport-sector decisions, the Cabinet cleared a Rs 5,041 crore scheme for phasing out old trucks and buses in Delhi-NCR and replacing them with modern BS-VI and other clean-fuel vehicles. The scheme is designed to accelerate fleet modernisation in the National Capital Region and targets more than 1.9 lakh trucks and 16,000 buses. Vehicle owners will be offered a package of incentives, including 5% interest subvention on vehicle loans, monthly fuel vouchers for five years through oil marketing companies, and discounts from automobile manufacturers.
Under the scheme, owners must either scrap their old vehicles at authorised vehicle scrapping facilities or sell them outside the NCR region before purchasing and registering new or used BS-VI or electric vehicles. State governments will provide additional support through 100% motor vehicle tax concessions and registration-fee waivers for new vehicles, while used BS-VI vehicles will be eligible for a 50% concession, valid for ten years.
Highway Upgradation in Madhya Pradesh and Bihar
The Cabinet also approved Rs 4,415 crore for the upgradation of NH-347B in Madhya Pradesh, a project aimed at improving highway infrastructure and connectivity in the state. In Bihar, approval was granted for Rs 3,936 crore worth of four-laning works on sections of NH-31 and NH-231, intended to improve road capacity and reduce travel time.
These projects collectively aim to boost economic growth, enhance connectivity, and modernise transport infrastructure across the country.
