Pay up or shut shop: Centre to airlines

Mumbai: It's time to pay up or shut shop for airlines that have hitherto defaulted on their fuel payments.
Under pressure from various state-owned oil companies, top sources within the Union government said they were in no mood to mollycoddle airlines unable to keep their pecuniary distress in check.
"We also have to import oil and have a deadline to clear the dues. Any company, including airlines, should make the payment on time, or we will have to get harsh with them in future," said a senior official from the petroleum ministry.
The official added that payments were pending to various countries, for crude oil import, one such being Iran.
Various news reports have pegged India's debt to Iran at five billion dollars. Iran fulfills about 12 per cent of India's oil requirements. Iran has been demanding immediate payment of its dues from India.
A recent statement by Irani caretaker Oil Minister Mohammad Aliabadi also reflected the pressure on the government to pay up.
"Iran will not cut oil supplies to India which will find a way to pay for its exports within the next two months," Aliabadi had said.
Two major players in the Indian aviation sector, Kingfisher and Air India, jointly owe more than Rs 3,500 crore to oil companies.
23/07/11 Bipin Kumar Singh/MiD DAY

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Categories: Indian Aviation- In General Jul 2011