scorecardresearch

Air India's unpaid fuel bill soars to Rs 4,324 cr

Air India (AI) has accumulated Rs 4,324 crore in unpaid fuel bills and the government has no plans to offer it any discount on jet fuel, the Lok Sabha was informed.

Loss-making national carrier Air India (AI) has accumulated Rs 4,324 crore in unpaid fuel bills and the government has no plans to offer it any discount on jet fuel, the Lok Sabha was informed on Friday.

Minister of state for petroleum and natural gas Panabaaka Lakshmi in a written reply to Parliament informed that AI owes the public sector oil companies Rs 4,324 crore in oustanding fuel bills as on February 28, 2013.

"Air India owes Rs 2,545 crore to Indian Oil Corp, Rs 779 crore to Bharat Petroleum Corp and Rs 1,000 crore to Hindustan Petroleum Corp".

Earlier this month, the minister had told Parliament that unlike private carriers such as Jet Airways and Kingfisher Airlines, AI has not given any security as insurance against default.

AI had a total outstanding of Rs 4,277.11 crore as on December 31, 2012, of which a sum of Rs 2,639.65 crore is overdue payment.

Overdue payment is the outstanding that has remained unpaid even after expiry of a 90 day credit or grace period by the oil companies.

Courtesy: Mail Today