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Union Civil Aviation Minister Ram Mohan Naidu on Tuesday said the government is holding discussions with airlines and oil marketing companies (OMCs) over rising aviation turbine fuel (ATF) costs which have been exacerbated by the crisis in West Asia, following IndiGo's decision to increase its fuel surcharge. 

"One of the most important things is the West Asia crisis and how it's putting a big burden on ATF prices. But we are still in discussion both with the airlines and also the OMCs. Let us see how the discussion unfolds," the minister told reporters on the sidelines of the IFQM Symposium 2026 conference here.

The minister further stated that the Civil Aviation Ministry would hold consultations with all stakeholders before taking a decision on the issue.

"The ministry is going to have a meeting with the stakeholders. And once we understand the point of view from all the stakeholders, then we will take a decision," he said.

While speaking at the conference, Naidu outlined the government's long-term vision for the aviation sector, including a push towards sustainable aviation fuel (SAF), development of multiple airport hubs and strengthening domestic aerospace manufacturing capabilities.

He said India has mandated that 1 per cent of fuel used on international flights should come from SAF by 2027, rising to 2 per cent by 2028 and 5 per cent by 2030.

In addition, the government is in discussions with state-run refiners -- Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corp (HPCL) -- on producing SAF in line with global standards.

India aims to become a global aviation hub by developing multiple airport hubs across the country, alongside a hub-and-spoke model that would allow passengers from smaller cities to connect to long-haul international flights through domestic gateways, according to him.

On aircraft manufacturing, the minister said at the event that India views engine production as a critical capability and is pursuing a phased approach beginning with maintenance, repair and overhaul (MRO) activities and component manufacturing.

He noted progress in indigenous helicopter engine development and said know-how generated in the defence sector could eventually support civil aviation manufacturing ambitions.