BPCL not yet in panic over Rs 400-cr AI dues

Mumbai: Bharat Petroleum Corporation has Rs 400 crore dues locked with Air India but is not pressing the panic button yet. The refiner no longer supplies fuel to Kingfisher Airlines (whose dues have been settled) though ‘cash-and-carry' continues in some locations.
“Air India is a matter of concern but it is not a hopeless situation. We do hope some action is taken though there is no clear picture so far,” Mr R.K. Singh, Chairman and Managing Director, said at a press conference here late on Friday.
AI has a 60-day credit with BPCL and observers say the ball is clearly in the Centre's court to draft a turnaround script for the beleaguered airline. Till then, the going will be tough for the oil companies, already reeling from losses incurred on diesel, cooking gas and kerosene.
Global prices of petrol have surpassed (those of) diesel in the recent past which is an unusual phenomenon. The depreciation of the rupee vis-à-vis the dollar has been a double whammy for oil refiners since crude imports have become a lot costlier.
17/09/11 Business Line

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Categories: Air India Sep 2011