Air India owes PSU oil firms Rs4,170 crore
14 December 2011
As of last month, debt ridden flag carrier, Air India, owes Rs4,170 crore to public sector oil marketing companies. Of this amount Rs3,588.17 crore is the principal amount and Rs582.33 crore the interest.
"As on November 30, total dues outstanding on account of Aviation Turbine Fuel (ATF) supplied to Air India by public sector oil marketing companies is Rs4,170.50 crore," minister of state for petroleum and natural Gas, RPN Singh said on Tuesday in the Rajya Sabha through a written reply.
Air India owes Rs2,380.88 crore in principal amount to Indian Oil Corp (IOC), Rs635.08 crore to Bharat Petroleum Corp Ltd (BPCL) and Rs573.01 crore to Hindustan Petroleum Corp Ltd (HPCL).
Besides, it also owes an interest of Rs423.43 crore to IOC, Rs92.73 crore to BPCL and Rs66.17 crore to HPCL.
"Oil marketing companies have reported that they had requested Air India for payment of dues, failing which they could take appropriate action for recovery of dues, including restriction of supplies," Singh said.
The government has now decided to extend credit facility of three months on ATF supplies to provide Air India with some time to complete its financial restructuring exercise which is currently going on, he said.
"Accordingly, (oil) ministry has advised the public sector oil marketing companies to extend three months credit to Air India, while protecting their commercial interests," he added.