Jet, Kingfisher owe oil PSUs over Rs. 1,774 crore

August 12, 2010 05:46 pm | Updated 05:46 pm IST - New Delhi

Private airlines Jet Airways and Kingfisher owe State-owned oil firms over Rs. 1,774 crore in unpaid jet fuel bills, Minister of State for Petroleum and Natural Gas Jitin Prasada said Thursday.

In a written reply to a question, he said Jet Airways had the highest outstanding of Rs. 960.15 crore as on June 30 towards State-owned fuel retailers while Kingfisher had Rs. 814.49 crore in unpaid bills.

Jet owes Rs. 830.40 crore to Indian Oil, Rs. 129.74 crore to Bharat Petroleum Corporation Limited (BPCL) and Rs. 0.01 crore to Hindustan Petroleum Corporation Limited (HPCL).

Kingfisher owes HPCL Rs. 536.04 crore, BPCL Rs. 248.55 crore and Indian Oil Corporation (IOC) Rs. 29.9 crore.

In all, the six private airlines in the country owe Rs. 1,887.82 crore to the oil companies. Outstanding of Spicejet (Rs. 74.5 crore), Go Air (Rs. 18.8 crore), Indigo (Rs. 0.6 crore) and Paramount Airways (Rs. 19.28 crore) is marginal compared to what the giants Jet and Kingfisher owe to the oil firms.

Mr. Prasada said in case of default in payment, the airlines are put on ‘cash-and-carry’ mode and interest is recovered on all overdue payments.

“Oil marketing companies also encash bank guarantee and post dated cheques for recovery of their outstanding dues,” he said.

HPCL, he said, has put Kingfisher Airlines on cash-and-carry mode since July 1 while BPCL has filed a winding up petition in the Mumbai High Court against the Vijay Mallya-owned company.

“Recovery is being made by BPCL in line with consent terms between BPCL and Kingfisher Airlines before the court in November 2009 whereby the entire dues are to be cleared by November 2010,” he added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.