India, June 3 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a one-time budgetary support of up to Rs 10,000 crore to create a Price Stabilisation Fund aimed at cushioning Scheduled Indian Airlines from volatility in Aviation Turbine Fuel (ATF) prices amid the ongoing West Asia crisis.
Under the scheme, the government will provide interest-free advances to Oil Marketing Companies (OMCs), enabling them to offer stable ATF pricing to participating airlines for both domestic and international operations. The support will compensate OMCs whenever international ATF prices rise above the benchmark level prescribed under the approved mechanism.
A key feature of the scheme is a recovery and true-up mechanism. When glo...