A concoction of bio-fuel mixed with aviation turbine fuel (ATF) powered a SpiceJet's Q400 flight which was flew on Monday.

The flight took off from Dehradun to Delhi. It was received by Cabinet ministers and airline officials at the Indira Gandhi International Airport, Terminal 2.

The government will make an environment friendly aviation action plan till 2035, Civil Aviation Minister Suresh Prabhu said.

The development assumes significance as the high ATF prices have dented the Indian airline sector with almost all players reporting losses for the first quarter of 2018-19.

Currently, fuel prices constitute 50-55 per cent of the overall operations cost of domestic airlines. India's ATF prices are one of the highest in the world due to the addition of state levies and taxes.

The fuel is not under the GST ambit like the bunker fuel used for the shipping industry.

Accordingly, a cabinet note on the standardization, use and policy of bio-fuel blended with ATF will be prepared soon, said Road Transport and Highway Minister Nitin Gadkari at the media briefing after the arrival of the flight.