Oil PSUs put the squeeze on AI | india | Hindustan Times
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Oil PSUs put the squeeze on AI

india Updated: Mar 20, 2012 22:20 IST
Anupama Airy

State-owned oil companies —Indian Oil, HPCL and BPCL — have sought immediate liquidation of their overdue outstanding of Rs 3,107 crore on jet fuel supplies to Air India (AI) and have staked their claim to the Rs 4,000 crore equity support extended to the ailing national carrier in the budget.

A senior oil company official told HT that the total outstanding (excluding interest) of AI to the three oil PSUs is Rs 4,760 crore, of which the overdue outstanding is Rs 3,107 crore including Rs 660 crore as interest accrued. http://www.hindustantimes.com/Images/Popup/2012/3/21_03_12-biz2.jpg

“Even after extending all support to Air India, as also the extended credit period of 90 days, such huge overdues are a matter of serious concern for the oil companies that are already reeling under the impact of high burden of under-recoveries,” the official said.

“Out of the government budgetary support of Rs 4,000 crore announced in this Budget for Air India, we have asked the airlines to liquidate our overdue outstanding amount,” official added.

Currently, AI is under a debt of Rs 43,777 crore, including loans and dues to vendors like oil firms and airport operators.

Oil firms said they are also not comfortable with the extended credit period facility as AI is making payments to private oil companies like — RIL and MRPL — under the ‘cash and carry’ mode of payment.

“We were instructed to supply the aviation turbine fuel (ATF) to AI with a 90 days credit period from September 16, 2011 but even after this facility, the airlines is not been able to make timely payments to us,” the oil company official said, adding that the oil PSUs have again sought government intervention.

Meanwhile, AI said that it’ll clear all dues soon. “We are hopeful of an equity injection by the government,” a senior AI official said. “Once we get the money we will clear all our dues.”