Saturday, September 07, 2019

In relief to Air India, Indian-Oil led OMCs won’t stop fuel supply in Hyderabad, Raipur

New Delhi: In a major relief to cash-strapped Air India, the oil marketing companies (OMCs) deferred the ban on fuel supply to the airline in cities like Hyderabad and Raipur over non-payment of outstanding dues.

The OMCs led by Indian Oil had asked the national carrier to pay a substantial part of the dues, including interest, at the earliest or face cut in fuel supplies. Since August 22, as many as six airports – Pune, Vizag, Cochin, Patna, Ranchi and Mohali – stopped receiving supplies.

“The ban on fuel supply at these six airports continues. Supply at the rest of the airports remains normal,” Air India spokesperson said in a statement

According to a report by news agency PTI, Air India has been on a cash-and-carry mode since April, and has been paying Rs 18 crore daily towards fuel bills, OMCs sought clearance of all dues at the earliest.

The airline’s total fuel bill dues stood at 4,600 crores at the end of March, which came down to Rs 4,300 crore by the end of July. Air India is provided with a 90-day credit but the dues have been mounting.
06/09/19 Indian Express
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