Union Power Minister Manohar Lal Khattar on Wednesday said the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a bundle of decisions spanning aviation fuel support, Delhi-NCR vehicle replacement, and two major highway projects in Madhya Pradesh and Odisha. The announcements, shared via his official X handle, signal a renewed push on transport infrastructure alongside targeted relief for the aviation sector and urban pollution control.

Context

In his post, Khattar wrote that under the chairmanship of 'respected Prime Minister Narendra Modi ji', the Cabinet 'granted its approval to important decisions'. The headline measure is a one-time budgetary support of up to Rs 10,000 crore to Oil Marketing Companies (OMCs) to provide price stability in Air Turbine Fuel (ATF) for Indian airlines operating domestic and international flights.

The Cabinet also cleared a scheme routed through the National Capital Region Planning Board (NCRPB) for the replacement of old trucks and buses in the Delhi-NCR region. The minister framed the move as part of efforts to reduce air pollution and promote cleaner transport in the capital region.

Two highway approvals round out the package. In Madhya Pradesh, the upgrade and widening of the Hivarkhedi-Roshni-Ashapur-Rudhi and Deshgaon-Julwania sections of NH-347B has been sanctioned. In Odisha, a new coastal highway from Rameshwar to Paradip, stretching 163.180 km at a cost of Rs 8,300.79 crore, will pass through Khurda, Puri, Kendrapara and Jagatsinghpur districts.

Policy backdrop

The ATF assistance lands against a backdrop of recurring volatility in global crude markets that has repeatedly squeezed Indian carriers. The Centre has previously moved to cushion the aviation sector, including through excise duty adjustments, given that ATF can account for roughly 40 per cent of an airline's operating cost.

The NCR vehicle replacement push fits into a layered framework that already includes the Graded Response Action Plan and the Commission for Air Quality Management, both established to address persistent winter smog and year-round particulate pollution across the capital region. Replacing ageing diesel fleets is widely seen as central to lowering on-road emissions.

The highway approvals extend the Centre's long-running expansion of national corridors under Bharatmala Pariyojana, launched in 2015. The Odisha coastal stretch also dovetails with the Sagarmala programme, which seeks to link port hinterlands such as Paradip with stronger road networks for freight movement.

Stakeholders and impact

For Indian carriers, the OMC support is intended to insulate ticket pricing and operating margins from sudden ATF spikes. The OMCs — IOC, BPCL and HPCL — typically reset ATF prices on the first of every month based on benchmark crude.

For Delhi-NCR commuters and residents, the trucks-and-buses scheme could accelerate the phase-out of older commercial vehicles that contribute disproportionately to particulate emissions. Transporters in the region will be watching for the eligibility terms and incentive structure under the NCRPB-routed scheme.

In Madhya Pradesh, the NH-347B widening is expected to ease freight movement across the Nimar belt and improve connectivity for traders and commuters. In Odisha, the four coastal districts on the alignment stand to gain from 'better and seamless connectivity', as Khattar put it, with potential spillovers for fisheries, tourism and port-linked logistics around Paradip.

What's next

Attention now shifts to tendering timelines for the Rs 8,300.79 crore Odisha coastal highway and the rollout mechanics of the NCR scrappage-and-replacement scheme, including subsidy levels and operator participation. The aviation industry will watch how the Rs 10,000 crore assistance is disbursed to OMCs and whether it translates into steadier ATF pricing through the upcoming travel season.

Taken together, the Cabinet decisions reinforce the government's twin emphasis on building physical infrastructure while managing the cost and environmental externalities of transport — a balance that will shape both fare-sensitive aviation demand and the quality of life in India's most polluted urban region.