Amid volatile fuel prices due to tensions in the Middle East, the government on Wednesday approved a one-time budgetary support of Rs 10,000 crore for oil marketing companies (OMCs) to provide price stabilisation for aviation turbine fuel (ATF) to Indian airlines for domestic and international operations. The decision was taken by the Union Cabinet, chaired by Prime Minister Narendra Modi. Sharing the details of the meeting, Union Minister Ashwini Vaishnaw said the budgetary support shall be in the form of interest-free advances to OMCs through the Demands for Grants of the Ministry of Petroleum and Natural Gas.
Price stabilisation support for thirty-six months
According to the information shared, the ATF price stabilisation support will be in force for 36 months. “There is a provision for annual review or until the advance amount is fully recovered/settled, whichever is earlier. The proposal may be extended beyond thirty-six months with the approval of the Competent Authority in case the corpus is not fully trued up within this period,” the government said.
