{"id":364287,"date":"2026-06-04T15:16:51","date_gmt":"2026-06-04T09:46:51","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=364287"},"modified":"2026-06-04T15:16:51","modified_gmt":"2026-06-04T09:46:51","slug":"price-stabilization-fund-for-scheduled-indian-airlines","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/price-stabilization-fund-for-scheduled-indian-airlines\/","title":{"rendered":"Price Stabilization Fund for Scheduled Indian Airlines"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><b>News: <\/b><span style=\"font-weight: 400;\">The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved Price Stabilization Fund for Scheduled Indian Airlines to provide ATF price stabilisation support to Scheduled Indian Airlines for their domestic and international operations.<\/span><\/p>\n<\/div>\n<h2 class=\"red-h2-box\"><b>About Price Stabilization Fund for Scheduled Indian Airlines<\/b><\/h2>\n<figure style=\"width: 297px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/pbs.twimg.com\/media\/HJ4zgdXbUAAzqix?format=jpg&amp;name=small\" alt=\"Price Stabilization Fund for Scheduled Indian Airlines \" width=\"297\" height=\"334\" \/><figcaption class=\"wp-caption-text\">Source: PIB<\/figcaption><\/figure>\n<ul>\n<li><span style=\"font-weight: 400;\">It is a <\/span><b>one-time budgetary support of ten thousand crore rupees for Oil Marketing Companies<\/b><span style=\"font-weight: 400;\"> to <\/span><b>provide ATF price stabilisation support<\/b><span style=\"font-weight: 400;\"> to Indian Airlines for their domestic and international operations.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Objective:<\/strong> The budgetary support shall b<\/span><b>e in the form of interest-free advances to OMCs <\/b><span style=\"font-weight: 400;\">through the Demands for Grants of the Ministry of Petroleum and Natural Gas.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">The support<strong> will be provided to companies to facilitate stable ATF pricing for airlines<\/strong> during the ongoing period of exceptional fuel price volatility arising from the West Asia crisis.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Key component of\u00a0 Price Stabilisation Fund:<\/b>\n<ul>\n<li><b>Interest-Free advance to OMCs:<\/b><span style=\"font-weight: 400;\"> It provides <\/span><b>for a one-time budgetary support of up to Rs.10,000 crore, which <\/b><span style=\"font-weight: 400;\">shall be provided as an<\/span><b> interest-free advance to OMCs to support ATF price stabilisation for Scheduled Indian Airlines.\u00a0<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The <\/span><b>corpus shall compensate OMCs for losses arising from elevated international ATF prices <\/b><span style=\"font-weight: 400;\">whenever the prevailing Import Parity Price exceeds the benchmark price determined under the approved mechanism.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Recovery and True-Up Mechanism<\/b><span style=\"font-weight: 400;\">: When international ATF prices moderate, the differential amount shall be recovered from OMCs and returned to the Consolidated Fund of India.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">The arrangement <\/span><b>shall continue until the entire support amount is fully recovered and settled.<\/b><\/li>\n<\/ul>\n<\/li>\n<li><b>Coverage of Domestic and International Operations: <\/b><span style=\"font-weight: 400;\">The scheme shall be available to all willing Scheduled Indian carriers for both domestic and international operations.<\/span><\/li>\n<li><b>Fixed ATF Price Arrangement: <\/b><span style=\"font-weight: 400;\">The mechanism provides<strong> greater predictability in fuel costs by adopting a fixed-price arrangement for domestic and international operations,<\/strong> thereby reducing the airline\u2019s exposure to sudden fuel price spikes<\/span><\/li>\n<li><b>Exclusive rights of ATF supply to OMCs: <\/b><span style=\"font-weight: 400;\">The arrangement will be <strong>implemented through an MoU between participating Indian airlines and OMCs<\/strong>, with the <strong>Ministry of Civil Aviation and the Ministry of Petroleum &amp; Natural Gas as signatories.\u00a0<\/strong><\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Under this arrangement<strong>, participating airlines will procure ATF only from OMCs for up to three years,<\/strong> subject to annual review or until the advance amount is fully recovered, whichever is earlier.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Implementation, Monitoring and Audit: <\/b><span style=\"font-weight: 400;\">A <\/span><b>Monitoring Committee comprising representatives of the Ministry of Civil Aviation, the Ministry of Petroleum &amp; Natural Gas and the Department of Expenditure<\/b><span style=\"font-weight: 400;\"> shall <\/span><b>oversee implementation, claim verification, reconciliation and settlement. <\/b><span style=\"font-weight: 400;\">All claims and recoveries shall be subject to audit.<\/span><\/li>\n<li><b>Duration of Price Stabilisation support: <\/b><span style=\"font-weight: 400;\">ATF price stabilisation support will be in force for a<\/span><b> period of thirty-six months, <\/b><span style=\"font-weight: 400;\">with provision for annual review or until the advance amount is fully recovered\/settled, whichever is earlier.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">The proposal <\/span><b>may be extended beyond thirty-six months with the approval of the Competent Authority<\/b><span style=\"font-weight: 400;\"> in case the corpus is not fully trued up within this period.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong data-start=\"0\" data-end=\"16\">Key Benefits: <\/strong>It will <strong>supports employment across the aviation ecosystem<\/strong> while maintaining passenger and cargo connectivity to sustain economic activity.\n<ul>\n<li>It will also <strong>strengthens tourism, trade, regional development, and global market integration<\/strong> through efficient utilisation of airport infrastructure.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved Price Stabilization Fund for Scheduled Indian Airlines to provide ATF price stabilisation support to Scheduled Indian Airlines for their domestic and international operations. About Price Stabilization Fund for Scheduled Indian Airlines It is a one-time budgetary support of ten thousand crore&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/price-stabilization-fund-for-scheduled-indian-airlines\/\">Continue reading <span class=\"screen-reader-text\">Price Stabilization Fund for Scheduled Indian Airlines<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872,3590],"class_list":["post-364287","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/364287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=364287"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/364287\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=364287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=364287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=364287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}