Key Decisions Made in Cabinet Meeting Led by Prime Minister Modi

In a pivotal cabinet meeting led by Prime Minister Narendra Modi, several key decisions were made, including support for the aviation sector amidst rising fuel prices, a significant plan to reduce pollution in the Delhi NCR region, and the approval of major national highway projects across various states. The initiatives aim to stabilize air travel costs, enhance road connectivity, and improve air quality, ultimately benefiting millions of citizens and fostering regional development. This article delves into the details of these impactful decisions.

By Narendra Chaudhary Jun 3, 2026, 17:24 IST

Cabinet Meeting Highlights

In a significant cabinet meeting chaired by Prime Minister Narendra Modi, several crucial decisions were made today. Information regarding these decisions was shared by Union Minister for Information and Broadcasting, Ashwini Vaishnaw, during a press conference. The meeting focused on providing relief to the aviation sector, reducing pollution in the Delhi NCR region, and approving national highway projects across various states.

Support for Aviation Sector

Union Minister Ashwini Vaishnaw announced that the cabinet has approved a fuel price stabilization fund for Indian airlines, in light of the severe volatility in aviation fuel prices due to the crisis in West Asia. This initiative will provide interest-free assistance of up to ₹10,000 crores to oil marketing companies, facilitated through the Ministry of Petroleum and Natural Gas. The government noted that international aviation fuel prices surged from approximately ₹60 per liter in March 2026 to ₹142 per liter in May. Fuel constitutes nearly 40% of the total operational costs for airlines, making this scheme vital for maintaining stability in both domestic and international air services. Under this plan, airlines will be required to purchase fuel exclusively from government oil companies for three years, which is expected to alleviate the financial burden on passengers and ensure air connectivity to smaller cities.

Pollution Reduction Initiative in Delhi NCR

Additionally, the cabinet approved a plan worth approximately ₹9,585 crores aimed at reducing air pollution in the Delhi NCR area. This initiative will promote the replacement of older trucks and buses with newer, less polluting vehicles. The National Capital Region Planning Board will oversee the implementation of this plan, which involves the governments of Delhi, Haryana, Rajasthan, and Uttar Pradesh. Incentives will be provided for replacing vehicles that meet BS-4 or older standards with BS-6 or electric vehicles. The government will offer 5% interest assistance on loans for five years, fuel vouchers, and special benefits for vehicle purchases. It is noteworthy that the transportation sector is a major contributor to pollution in Delhi NCR, with only 3% of heavy vehicles responsible for 36% of PM 2.5 pollution. The government anticipates that this initiative will benefit around 207,000 vehicle owners and improve air quality in the region.

Approval of Major Road Projects

The cabinet meeting also sanctioned several important road projects across various states. In Madhya Pradesh, ₹4,415 crores will be allocated for upgrading a 233-kilometer stretch of National Highway 347-B. This project aims to enhance road connectivity for the districts of Betul, Khandwa, Khargone, and Barwani, including the construction of multiple bypasses to reduce travel time and improve road safety. The project is expected to create millions of man-days of employment directly and indirectly, benefiting the textile industry, mega food parks, thermal power plants, and enhancing connectivity to railways and airports.

Further Road Development in Telangana and Bihar

In Telangana, the cabinet approved the development of a 191-kilometer stretch of National Highways 63 and 563 into a four-lane road, with an estimated cost of ₹7,597 crores. This project will facilitate smoother traffic flow in the districts of Nizamabad, Jagitial, Mancherial, and Karimnagar, potentially reducing travel time by up to one and a half hours. The road project aims to connect economic and social centers while expediting goods transportation.

Moreover, a project to convert a 143-kilometer stretch of National Highways 31 and 231 from Khagaria to Purnia in Bihar into a four-lane road has also received approval. This project, costing around ₹3,936 crores, will benefit the districts of Khagaria, Bhagalpur, Katihar, and Purnia, including the construction of a greenfield bypass for Purnia city, which is expected to reduce travel time to about two hours and facilitate smoother goods transport.

New Coastal Highway in Odisha

Additionally, the cabinet approved the construction of a new coastal highway from Rameshwar to Paradip in Odisha, with an investment of approximately ₹8,300 crores for a 160-kilometer road. This project will enhance connectivity for the districts of Puri, Kendrapara, and Jagatsinghpur, reducing travel time by up to two and a half hours. The initiative is expected to boost tourism, the fishing industry, and port activities. The government believes that these road projects will significantly contribute to regional development, job creation, and strengthen the country's logistics capabilities.