Nod to cleaner mobility in Delhi- NCR
NEW DELHI, June 3:
The Union cabinet on Wednesday approved a Rs 10,000 crore aviation turbine fuel (ATF) price stabilisation programme to cushion airlines from soaring fuel costs triggered by the ongoing West Asia crisis, a move aimed at protecting air connectivity and limiting fare volatility.
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The scheme will provide interest-free advances of up to Rs 10,000 crore to state-owned oil marketing companies (OMCs), enabling them to supply ATF to scheduled Indian airlines at a stabilised price for domestic and international operations, according to a government statement.
The support mechanism comes as international ATF prices have surged to about Rs 142 per litre in May from Rs 60.50 per litre in March, increasing financial pressure on airlines at a time when fuel accounts for nearly 40 per cent of operating costs and, in some cases, as much as 60 per cent during periods of extreme volatility.
Under the arrangement, OMCs will be compensated whenever international import parity prices exceed a benchmark level set under the approved mechanism. Any support extended to OMCs will be recovered once global fuel prices moderate, with proceeds returned to the Consolidated Fund of India through a defined true-up process.
Announcing the decision, I&B Minister Ashwini Vaishnaw said the budgetary support will help airlines in the backdrop of a rise in ATF prices due to the conflict and closure of airspace by Pakistan for Indian carriers.
The prices of aviation turbine fuel, which accounts for around 40 per cent of an airline’s operational costs, have surged in recent weeks in the wake of the West Asia crisis, which started in late February.
Vaishnaw said the fund would help stabilise ATF prices for scheduled Indian carriers and prevent disruption of airline operations.
With the fund, airlines would get a stable ATF price as long as the turmoil is there, and once the crisis is over, then the participating airlines would have to reimburse the amount, he said.
According to the minister, the fund would shield air passengers from fare spikes, driven by the global oil price surge, and also protect 77 lakh jobs dependent on the aviation ecosystem.
The budgetary support will be in the form of interest-free advances to OMCs through the Demands for Grants of the Ministry of Petroleum and Natural Gas, an official release said.
The support will be provided to OMCs to facilitate stable ATF pricing for airlines during the ongoing period of exceptional fuel price volatility arising from the West Asia crisis.
The Union Cabinet also approved a scheme for replacement of old trucks and buses in Delhi-NCR area, a move aimed at reducing air pollution in the region and promoting cleaner mobility.
The scheme seeks to incentivise owners of trucks and buses registered in the Delhi-NCR that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles or electric vehicles (EVs).
According to a statement, the Centre will provide 5 per cent interest subvention on loans for five years, monthly fuel vouchers worth up to Rs 4,800 depending on vehicle category, and lump-sum benefits for EV purchases or certificate of deposit trading.
The scheme will benefit approximately 2.07 lakh (1.91 lakh trucks and 16,329 buses) owners in Delhi and NCR states, such as Haryana, Rajasthan, and Uttar Pradesh.
The total financial outlay on the scheme will be Rs 9,585 crore, including Rs 5,041 crore from the Centre and an estimated Rs 1,601 crore in tax concessions from the states.
The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.
The Government said the scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA) and implemented by the Ministry of Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG).
It will be implemented in collaboration with the participating states of Haryana, Rajasthan, Uttar Pradesh and Union Territory of Delhi.
Meanwhile, The Cabinet approved the construction of a new coastal highway from Rameshwar to Paradeep in Odisha at a total project cost of Rs 8,300.79 crore.
The new coastal highway from Rameshwar to Paradeep will be constructed on a hybrid annuity model, in two packages, with a combined total length of 160.18 km, an official statement said.
According to an official statement, the project section of the new coastal highway passes through Khurda, Puri, Kendrapada and Jagatsinghpur districts of Odisha.
The existing road geometry along the Puri-Satapada and Puri-Konark stretches is poor, with nearly 40 per cent ribbon development along the corridor and high levels of roadside local commuter traffic, making the corridor unsuitable for smooth and efficient long-distance vehicular movement, the statement said.
The instant projects are proposed to have a four-lane configuration from Rameshwar to Konark (Package-1) and 2 lane with paved shoulder from Konark to Paradeep (Package-2), ensuring design speed of 100 km/hour and improved travel efficiency across the Districts of Khurda, Puri, Kendrapada and Jagatsinghpur in Odisha.
The Cabinet also approved two major National Highway widening projects in Telangana spanning a total length of 190.76 km at a cost of Rs 7,597.16 crore.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, on Wednesday approved the widening of the Armoor-Jagtial-Mancherial Section of NH-63 on Hybrid Annuity Model (HAM) and the Jagtial-Karimnagar Section of NH-563 on Build-Operate-Transfer to the 4-Lane standard in Telangana.
According to an official statement, the project section of Armoor-Jagtial-Mancherial passes through Nizamabad, Jagtial, and Mancherial Districts of Telangana, facing severe congestion at present due to several built-up areas along the highway, such as Anksapoor, Korutla, Jagtial, Dharmapuri, Lakshettipet and Mancherial. (PTI)
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