In a major relief for Air India, Petroleum Ministry today decided to grant two to three months credit to the troubled airline for jet fuel instead of making
daily payments. The national carrier had been put on cash-and-carry mode
by public sector oil companies since last December as it owes
more than Rs 2,000 crore to them.
Air India has been paying Rs 16.5 crore a day for lifting aviation turbine fuel (ATF) for its day-to-day operations. The decision on providing fuel credit was taken by a Group of Ministers, headed by Finance Minister Pranab Mukherjee, which also reviewed the latest financial and operational performance of the ailing carrier, Civil Aviation Minister Vayalar Ravi said.
"Instead of cash and carry, Air India will from now on make payments on the basis of this credit limit of two to three months," Ravi said, adding, "So, the tension of making daily payments is now over". The meeting was also attended by Petroleum Minister S Jaipal Reddy, Home Minister P Chidambaram, Deputy Chairman of Planning Commission Montek Singh Ahluwalia and Civil Aviation Secretary S Nasim Zaidi.
18/08/11 PTI/Moneycontrol.com
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