India, June 4 -- The Union cabinet has approved a Rs.10,000 crore fund to shield airlines from volatility in the price of jet fuel even as it offsets losses that fuel sellers incur.

The one-time budgetary support of Rs.10,000 crore will allow Oil Marketing Companies (OMCs) to provide Aviation Turbine Fuel (ATF) at stable prices to Indian airlines for both domestic and international operations.

"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 (MoPNG). 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 g...