Government Approves ₹10,000 Crore ATF Fund
The Union Cabinet has approved a ₹10,000 crore ATF Price Stabilisation Fund to support Indian airlines during the ongoing period of sharp fuel price volatility linked to the West Asia crisis.
ATF Price Stabilisation Fund For Airlines
The one-time budgetary support will be provided to oil marketing companies to help stabilise aviation turbine fuel prices for scheduled Indian carriers. The support will cover both domestic and international operations.
Information and Broadcasting Minister Ashwini Vaishnaw said the fund will function as a self-sustaining revolving mechanism to cushion airlines from sudden ATF price shocks.
Indian Aviation Jobs And Fuel Volatility
The government said the decision will help protect around 77 lakh jobs dependent on India’s aviation ecosystem. The move comes as international ATF prices have surged sharply due to instability in West Asia.
According to the government, ATF prices rose from ₹60.5 per litre in March to ₹142 per litre in May this year, creating pressure on airline operating costs.
Monitoring Committee To Oversee ATF Support
A monitoring committee with representatives from the Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas and Department of Expenditure will supervise the scheme.
The committee will handle implementation, claim verification, reconciliation and settlement. The ATF price stabilisation support will remain in force for 36 months.
The Cabinet also approved separate projects, including support for replacing old trucks and buses in Delhi-NCR, a new coastal highway in Odisha and four-laning of the Khagaria-Purnea section in Bihar.
