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Oil cos stop jet fuel supplies to AI

The Air India owes about Rs 4,200 cr in past dues towards fuel purchases.

Written by Agencies | New Delhi | Published: February 2, 2012 6:17:58 pm

Oil firms stop jet fuel supplies to Air India over dues

New Delhi

State-owned oil companies today snapped supplies of jet fuel to Air India for failing to honour payments even after 90-day credit period,but the ailing national carrier said it has paid Rs 180 crore andwould pay another Rs 40 crore by tomorrow.

“I have spoken to the Petroleum Secretary not to disrupt (aviation turbine fuel) supplies and he has assured,” Civil Aviation Secretary Nasim Zaidi said.

All three oil companies — Indian Oil,Bharat Petroleum and Hindustan Petroleum — jointly stopped ATF supplies to Air India at Delhi,Mumbai,Kolkata,Chennai,Trivandrum and Kochi from 1600 hrs today.

Zaidi said the cash-strapped carrier had just paid Rs 180 crore. Rs 40 crore would be released tomorrow and another Rs 40 crore soon.

Senior Air India officials claimed the airline owed Rs 260 crore to the oil companies for the credit period and “we are well within the credit limit.”

The oil companies decided to stop ATF supplies saying Air India had not honoured its commitment to make payments for jet fuel it bought from the oil companies even after expiry of 90 day credit period.

“The government had last year asked us to give a 90-day credit period to Air India,which we diligently did. As per that,payments for ATF sold to Air India in mid-October was due on January 22 but it did not make any payment,” an oil company official said.

The airline Air India owes over Rs 4,170 crore to public sector oil companies in unpaid jet fuel bills,according to figures tabled in Parliament.

As of November 30,total dues outstanding on account of ATF supplied to Air India by public sector oil marketing companies is Rs 4,170.50 crore. Of this,Rs 3,588.17 crore is the principal and Rs 582.33 crore is the interest.

Air India owes Rs 2,380.88 crore in principal amount to Indian Oil Corporation,Rs 635.08 crore to Bharat Petroleum Corporation Ltd and Rs 573.01 crore to Hindustan Petroleum Corporation Ltd.

Besides,it owes an interest of Rs 423.43 crore to IOC,Rs 92.73 crore to BPCL and Rs 66.17 crore to HPCL.

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