Vijay Mallya’s Kingfisher still owes HPCL 220-cr

Mumbai: Vijaya Mallya-owned Kingfisher Airlines, still owes Rs 220-crore to state-run HPCL even after a part payment of its dues for purchase of jet fuel, a top HPCL official said.
The cash-strapped airline, however, continues to be supplied fuel on a cash-and carry arrangement, the official said.
“They (Kingfisher) still owe us Rs 220-crore. Their outstanding (at one time) was Rs 581-crore,” Hindustan Petroleum Corporation Limited (HPCL)’s Chairman and Managing Director, Subir Roy Choudhury, told reporters here.
The loss-making private air-carrier was put on the cash and carry basis by the state-run oil marketing company some months ago after it failed to provide bank guarantee cover against payment defaults.
The airline buys around 1,300-1,350- kilolitres of jet fuel to the tune of over Rs 130-crore every month.
17/09/10 ExpressIndia

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Categories: Kingfisher Sep 2010