Wednesday, October 10, 2018

AI makes part payment, receives fuel from OMCs

Chennai: Oil marketing companies (OMCs) had been reported to have halted fuel supply to debt-ridden Air India due to the national carrier slipping payments. However, recent reports have clarified that fuel supplies won’t be stopped as the carrier has paid its dues in part.

The report quoted an Air India official saying, “AI was to pay Rs 100 crore to the oil marketing companies on Monday morning as payment for fuel uplifted over the weekend. When they did not get the same by afternoon, the stop-supply order for right places was issued. But after 1 pm they got the payment and our aircraft are getting fuel without disruption.”

It may be noted that the oil companies issued an ultimatum to the airline last month saying that if the airline does not pay the pending dues of Rs 5,000 crore, their fuel supply will be suspended. According to a PTI report, Air India buys fuel worth Rs 600 crore monthly from Indian Oil Corporation, Bharat Petroleum Limited and Hindustan Petroleum Limited.

Earlier this year, another report quoted a senior executive of a state-run oil company saying, “Air India is a PSU and that’s why we are continuing to supply. Had it been a private firm, we could have already stopped the supply.”
09/10/18 News Today
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