MUMBAI, Aug 31: Flight services of flag carrierAir India, including those for Haj pilgrimage, might be hitpartially following the IOC-led oil marketing companies(OMCs)threatening to suspend fuel supplies at two moreairports — Hyderabad and Raipur– over non-payment of dues.The state-owned oil marketing firms have alreadystopped supplying fuel to Air India flights at Pune, Vizag,Cochin, Patna, Ranchi and Mohali since August 22.
The three OMCs — Indian Oil Corporation, HindustanPetroleum Corp Ltd and Bharat Petroleum Corp Ltd — togetherhave around Rs 4,300 crore in dues from Air India.Though Air India is on cash-and-carry mode since Aprilthis year and making a payment of Rs 18 crore per day towardsdaily jet fuel bill, the OMCs have sought clearance of alldues at the earliest.
“The OMCs have asked Air India to make a lump sumpayment towards outstanding amount including interest at theearliest, saying if the carrier fails to do so, they willextend the suspension of fuel supplies to Hyderabad and Raipurairports as well from September 6,” a source privy to thedevelopment told PTI.He said that Air India does not have internationaloperations from the six airports where the OMCs have not beensupplying jet fuel to its flights since August 22.”However, if it is stopped in Hyderabad as well,there will be severe impact on some of our overseas flights aswell as Haj operations in addition to domestic operations,” hesaid.”Air India’s total fuel bill dues were Rs 4,600 croreas of March 31, 2019 which came down to Rs 4,300 crore by July31,” the source said.”Also, since April 1 this year, Air India is making apayment of Rs 18 crore per day for daily fuel intake,” thesource added.
An Air India spokesperson refused to comment.The source said so far the national carrier wasmanaging operations from the six airports by reschedulingflights, but if supplies are cut at two more airports,especially Hyderabad, it would have a big impact on itsoverall operations.On Wednesday, Indian Oil had defended cutting jet fuelsupplies to Air India.”We ourselves are borrowing around Rs 75,000 croreannually, that means we are a net borrower and not a cash-surplus company. To support credit to Air India, we need toborrow from markets,” IOC chairman Sanjiv Singh had said.He said IOC provides 90 days credit to Air India butthe dues have been mounting and this must be 240 days now.”So the total dues to us, including interest, is morethan Rs 2,900 crore.
Although we don’t take any formal bankguarantee from a public sector entity which we do from privateairlines, now we are a little worried and cannot continuouslysupport the airline,” Singh had stated. (PTI)
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