New Delhi: The Union Cabinet has approved a series of major initiatives worth more than ₹39,000 crore aimed at bolstering India’s transport infrastructure, supporting the aviation sector, improving air quality, and enhancing regional connectivity. The decisions include the establishment of a ₹10,000-crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund, a ₹5,041-crore programme to replace ageing commercial vehicles in Delhi-NCR, and several strategic highway projects across Odisha, Bihar, Telangana and Madhya Pradesh.
In response to a sharp escalation in global fuel prices caused by the ongoing tensions in West Asia, the Cabinet has cleared the creation of an Aviation Turbine Fuel Price Stabilisation Fund with an initial corpus of ₹10,000 crore. International ATF prices have jumped from ₹60.5 per litre in March 2026 to ₹142 per litre in May 2026, significantly increasing operating costs for airlines and putting pressure on oil marketing companies. To mitigate the impact, the government has fixed the domestic ATF price at ₹75.6 per litre.
Designed as a revolving and self-sustaining mechanism, the fund will support both domestic and international aviation operations. With fuel accounting for nearly 40% of airlines’ operational expenditure, the measure is expected to ensure continuity of services, prevent steep increases in airfares, and safeguard approximately 77 lakh jobs linked to the aviation industry. The government believes the fund will also help sustain critical international and regional air connectivity, especially to Europe, North America and Central Asia, at a time when Pakistani airspace remains inaccessible.
Further, to curb air pollution in Delhi-NCR, the Cabinet has approved a ₹5,041-crore scheme to replace over 1.9 lakh old trucks and 16,000 buses with BS-VI-compliant or electric vehicles. The scheme offers incentives such as a 5% interest subsidy on vehicle loans, fuel vouchers for five years, and manufacturer discounts. Vehicle owners will also receive tax and registration fee concessions when upgrading to cleaner vehicles. The initiative is expected to accelerate the shift to low-emission transport and strengthen the vehicle scrappage ecosystem.
The Cabinet has also cleared an ₹8,301-crore greenfield coastal highway project connecting Rameshwar, Konark and Paradeep in Odisha. The 160-km corridor, part of the larger Rameshwar–Digha coastal route, will improve connectivity to Paradeep Port, reduce travel time between Rameshwar and Paradeep by about 2.5 hours, and provide better access to key tourist destinations such as the Jagannath Temple, Konark Sun Temple and Puri Beach.
The Cabinet has approved the four-laning of a 144-km stretch of NH-31 and NH-231 between Khagaria and Purnea in Bihar at a cost of ₹3,936 crore under the BOT (Toll) model. The project will strengthen connectivity across the Seemanchal region and neighbouring states, while reducing travel time between Khagaria and Purnea from four hours to around 90 minutes.
In Telangana, the government has cleared ₹7,597 crore for four-laning key sections of NH-63 and NH-563, covering the Armoor–Jagtial–Mancherial and Jagtial–Karimnagar corridors under the Bharatmala Pariyojana. The project is expected to significantly improve regional connectivity and cut travel times by nearly half.
The Cabinet has also approved the ₹4,415-crore upgradation of NH-347B in Madhya Pradesh, including two-laning and four-laning of key stretches under the Vadodara–Khandwa–Betul Economic Corridor. The project will improve connectivity in Betul, Khandwa and Barwani districts, enhance access to major energy hubs, and support the region’s soybean-based economy.
With these approvals, the value of infrastructure projects sanctioned under the NDA 3.0 government has crossed ₹25 lakh crore. The Centre has so far approved 57 railway projects worth ₹2.59 lakh crore, 35 highway projects worth ₹3.62 lakh crore, and 11 metro projects worth ₹1.44 lakh crore, alongside major investments in airports, ports, housing, smart cities, water supply and energy sectors. The government said the decisions reflect its continued focus on infrastructure-led growth, better connectivity and economic development.
