Mumbai: The Vijay Mallya-run Kingfisher Airlines owes state-run Hindustan Petroleum Corp Ltd (HPCL) Rs 505.53 crore in jet fuel dues against a bank guarantee of Rs 434 crore, according to the oil marketing company’s annual report.
“If Kingfisher fails to pay our dues, we have the option of encashing the bank guarantee. But, as of now, we are hopeful the entire dues will be realised,” a senior HPCL official told Business Standard, requesting anonymity.
HPCL is Kingfisher's biggest aviation fuel supplier. It had snapped supplies to the airline in March due to non-payment, a move that grounded its flights temporarily.
While IndianOil Corp Ltd's supplies to Kingfisher are negligible, Bharat Petroleum Corp Ltd (BPCL) sells fuel to the airline on a cash-and-carry basis at some airports.
A senior BPCL official, who also did not want to be named, said that in case an airline failed to pay the dues, oil marketing companies could take action for recovery of dues in accordance with the mutually-agreed commercial terms. Interest on the amount is recovered in overdue payments.
19/09/12 Kalpana Pathak/Business Standard
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“If Kingfisher fails to pay our dues, we have the option of encashing the bank guarantee. But, as of now, we are hopeful the entire dues will be realised,” a senior HPCL official told Business Standard, requesting anonymity.
HPCL is Kingfisher's biggest aviation fuel supplier. It had snapped supplies to the airline in March due to non-payment, a move that grounded its flights temporarily.
While IndianOil Corp Ltd's supplies to Kingfisher are negligible, Bharat Petroleum Corp Ltd (BPCL) sells fuel to the airline on a cash-and-carry basis at some airports.
A senior BPCL official, who also did not want to be named, said that in case an airline failed to pay the dues, oil marketing companies could take action for recovery of dues in accordance with the mutually-agreed commercial terms. Interest on the amount is recovered in overdue payments.
19/09/12 Kalpana Pathak/Business Standard
