Due to the global crisis, oil prices are continuously increasing in India. Recently, the prices of diesel, petrol and CNG also increased in India. Traveling abroad has also become expensive because airplane oil has also become expensive. Now the Central Government has announced to provide one-time assistance of maximum Rs 10,000 crore to oil companies producing Air Turbine Fuel (ATF). This help will be applicable for both domestic and international flights. The government says that this will benefit all three, oil companies, aviation companies and customers.
The government has also said that no interest will be charged on this money given to Indian airline companies. Union Minister Ashwini Vaishnav has said that in the cabinet meeting held on Wednesday, a decision has been taken to create ATF Price Stabilization Fund. Detailed information about this will be given by the Civil Aviation Ministry.
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What did Ashwini Vaishnav tell?
Addressing the press conference, Union Minister Ashwini Vaishnav said, ‘A big problem has emerged due to the crisis in West Asia. The price of Aviation Turbine Fuel (ATF) which was Rs 60 in March, became Rs 142 in May. To avoid this impacting domestic passengers, the government had capped the price of ATF for domestic flights at Rs 75.60. Domestic flights remained stable due to this. However, if this crisis continues for a long time, it is having a negative impact on the oil companies. Now after much deliberation we have found a solution.
He further said, ‘We have decided to create an ATF Price Stabilization Fund. Under this, ATF will get stable price during the crisis and its reimbursement will also be available after the crisis. This will avert the threat to 77 lakh jobs in our aviation sector.
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Other decisions of the cabinet
- National Capital Region Planning Board (NCRPB) will be provided assistance to remove old trucks and buses from Delhi-NCR. Under this, Rs 9585 crore will be spent in the next two years and electric vehicles will be promoted.
- A new coastal highway will be built in Odisha. The length of this highway to be built between Rameshwar and Paradeep will be 163.18 kilometers and Rs 8300.79 crore will be spent on it.
- In Telangana, two National Highways 63 and National Highway 564 will be made 4-lane at a cost of Rs 7597.16 crore.
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