The Union Cabinet on Wednesday approved a package of projects and schemes worth Rs 39,290 crore, spanning aviation, highway infrastructure and transport modernisation, with the largest allocation going towards the creation of an Aviation Turbine Fuel (ATF) Price Stabilisation Fund.According to details of the Cabinet decisions, the government approved a Rs 10,000 crore ATF Price Stabilisation Fund, aimed at addressing volatility in aviation fuel prices and providing greater predictability for airlines, for whom fuel remains one of the largest operating costs.
| Project | Cost |
|---|---|
| ATF Price Stabilisation Fund | Rs 10,000 crore |
| Coastal Highway: Rameshwaram–Konark–Paradip | Rs 8,301 crore |
| NH-63 & NH-563 four-laning (Telangana) | Rs 7,597 crore |
| Delhi-NCR truck and bus replacement scheme | Rs 5,041 crore |
| NH-347B upgradation (Madhya Pradesh) | Rs 4,415 crore |
| NH-31 & NH-231 four-laning (Bihar) | Rs 3,936 crore |
| Total | Rs 39,290 crore |
The Cabinet also approved a Rs 8,301 crore coastal highway project connecting Rameshwaram, Konark and Paradip, one of the biggest infrastructure approvals in the package. The project is expected to strengthen connectivity along the eastern coastline and improve transport links between important coastal regions.Another major approval was Rs 7,597 crore for four-laning sections of NH-63 and NH-563 in Telangana, aimed at enhancing highway capacity and improving freight and passenger movement in the state.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 will have to 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.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, another project intended to improve road capacity and reduce travel time.