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Oil firms say Air India not paying dues

On August 22, the three OMCs had stopped fuel supplies to Air India at six airports, but resumed them after the government intervened.

Published: 16th October 2019 08:58 AM  |   Last Updated: 16th October 2019 08:58 AM   |  A+A-

Air India

Air India (File Photo | PTI)

By Express News Service

NEW DELHI: Oil marketing companies (OMCs) on Tuesday said that Air India was not honouring its commitment to pay Rs 100 crore every month to clear its jet fuel dues of over Rs 5,000 crore.

If payment is not cleared, the OMCs said they would be forced to snap supplies at major airports from Friday (October 18). 

“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, along with Bharat Petroleum and Hindustan Petroleum, has served a notice to the carrier on the same matter.

“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.

Air India, however, insisted the move would not affect the schedules or movement of flights. A senior official said that the airline had asked the government to release equity payment due to the airline to pay up for past fuel bills. 

The official said that while at present the carrier is able to meet its daily fuel requirement, it is unable to pay up for the backlog of dues. It is expected that like the previous time, the carrier and the OMCs will reach a settlement. 

On August 22, the three OMCs had stopped fuel supplies to Air India at six airports but resumed them after the government intervened.



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