Tuesday, October 15, 2019

Oil Cos: Air India not honouring Rs 100cr/month payment

State-owned oil companies on Tuesday accused Air India of not honouring its commitment to pay Rs 100 crore every month to clear overdue ATF outstanding of over Rs 5,000 crore and will be forced to snap supplies at major airports from Friday if no solution is offered.
"Air India had back in June and again in September agreed to pay the three oil marketing companies Rs 100 crore every month to clear past ATF dues. But unfortunately it hasn't met its commitment," said Sandeep Kumar Gupta, Director (Finance), Indian Oil Corp (IOC).
IOC and two other oil marketing companies, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), have served a notice on Air India that they will be forced to stop jet fuel (ATF) supplies if payments are not made, he said.
The monthly payment was besides the airline being put on cash-and-carry where it was given fuel only against cash payment.
"We have said we will stop supplies at major airports. Let's see what is the outcome of negotiations before the October 18 deadline," Gupta said.
15/10/19 PTI/Deccan Herald
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