By South Matters Business Desk | India
The Union Cabinet has approved a series of major infrastructure and economic measures aimed at strengthening transportation networks, supporting the aviation sector and accelerating cleaner mobility across the country.
The approvals include highway projects worth more than ₹29,000 crore, a fuel price stabilisation fund for the aviation sector and a large-scale vehicle replacement program in Delhi-NCR.
₹10,000 Crore ATF Stabilisation Fund for Aviation
One of the key decisions was the approval of a ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund.
The fund aims to reduce the impact of sharp fluctuations in fuel prices on airlines and the aviation industry.
The move comes after global fuel prices surged due to geopolitical tensions in West Asia. ATF prices reportedly increased from ₹60.5 per litre in March 2026 to ₹142 per litre by May 2026.
Officials believe the fund will provide greater stability to airlines and help manage operational costs during periods of market volatility.
Delhi-NCR Vehicle Replacement Scheme Gets ₹5,041 Crore
The Cabinet also approved ₹5,041 crore for a large vehicle replacement initiative in Delhi-NCR.
The scheme targets the replacement of older BS-I, BS-II, BS-III and BS-IV commercial vehicles.
More than 1.9 lakh trucks and over 16,000 buses are expected to be covered under the program.
Furthermore, the initiative is designed to encourage the adoption of BS-VI compliant vehicles and electric vehicles, helping improve air quality in the region.
Major Highway Projects Approved
The government approved several large road infrastructure projects across multiple states.
Telangana
National highway expansion projects worth ₹7,597 crore received approval. The projects focus on four-laning key highway corridors to improve connectivity and freight movement.
Bihar
The Cabinet cleared ₹3,936 crore for four-laning national highways in Bihar. The upgrades are expected to strengthen regional transportation networks and support economic growth.
Odisha
A major coastal highway project worth ₹8,301 crore was approved for Odisha. The project aims to improve connectivity along the state’s coastline and support tourism, trade and logistics.
Madhya Pradesh
Road infrastructure projects worth ₹4,415 crore received approval in Madhya Pradesh. The works include upgrading selected national highways to improve travel efficiency and safety.
Over ₹29,000 Crore Infrastructure Push
Combined, the approved road projects account for more than ₹29,000 crore in infrastructure investment.
The government expects these projects to generate employment, improve logistics efficiency and strengthen connectivity across key economic corridors.
Additionally, the initiatives align with India’s broader goals of modernising transport infrastructure and supporting long-term economic growth.
Focus on Growth and Sustainability
The latest Cabinet decisions reflect a dual focus on infrastructure development and environmental sustainability.
While highway expansion aims to improve connectivity and economic activity, the vehicle replacement program seeks to reduce emissions and encourage cleaner transportation technologies.
With implementation set to begin in the coming months, these projects are expected to play a significant role in shaping India’s transportation and infrastructure landscape.