Heat on AI over fuel dues

New Delhi: State-owned oil firms have demanded that Air India should come out with a road map to clear over Rs 2,400 crore jet fuel dues and make upfront payment for future purchases.
According to officials in the civil aviation ministry, the government is likely to encourage Air India to submit a payout plan, but it is unlikely that the oil firms will be allowed to ask for full upfront payment. “The national carrier is going through a bad patch and other PSUs have to be a little understanding,” officials said.
Air India has defaulted on the payment of about Rs 2,000 crore in jet fuel bills since last year, and the total amount outstanding has crossed Rs 2,400 crore after including Rs 400 crore in interests, industry officials said.
“Indian Oil, Hindustan Petroleum and Bharat Petroleum suffer huge losses on selling petrol, diesel, domestic LPG and kerosene way below their production cost and to expect them to sell ATF (aviation turbine fuel) at subsidised rates is not acceptable,” oil industry sources said.
31/03/11 The Telegraph

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Categories: Air India Mar 2011