Kingfisher Airlines owes Rs 506 cr to HPCL

Mumbai: Vijay Mallya-run Kingfisher Airlines owes state-run Hindustan Petroleum Corporation Limited (HPCL) Rs 505.53 crore in jet fuel dues, according to HPCL's annual report.
Kingfisher Airlines however, owes this due against a bank guarantee to HPCL to the tune of Rs 434 crore, says HPCL.
“If Kingfisher fails to pay our dues, we have the option of encashing the bank guarantee. But as of now we are hopeful that the entire dues will be realised,” a senior official from HPCL told Business Standard.
HPCL is Kingfisher's biggest aviation fuel supplier. This March, due to non-payment of dues, HPCL had snapped fuel supplies to Kingfisher, grounding its flights, temporarily.
While IndianOil Corporation's supplies to Kingfisher Airlines is negligible, Bharat Petroleum Corporation Limited (BPCL) sells fuel to the airline on a cash-and-carry basis at some airports.
18/09/12 Kalpana Pathak/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Kingfisher Sep 2012