State-owned oil companies have resumed jet fuel supplies to Air India after the national carrier promised to pay Rs.268 crore in dues on Friday. Oil company officials said the supplies were being resumed after Air India promised to clear dues by Friday. All the three oil companies — Indian Oil, Bharat Petroleum and Hindustan Petroleum — had jointly stopped air turbine fuel (ATF) supplies to Air India in Delhi, Mumbai, Kolkata, Chennai, Thiruvananthapuram and Kochi from Thursday.
The carrier had failed to honour payments even after the 90-day credit period.
Earlier, Civil Aviation Secretary Nasim Zaidi told PTI that he had asked the Petroleum Secretary not to stop the jet fuel supply to the carrier.
“I have spoken to the Petroleum Secretary not to disrupt (aviation turbine fuel) supplies and he has assured me,” Civil Aviation Secretary Nasim Zaidi said.
Senior Air India officials had claimed that the airline owed Rs.260 crore to the oil companies for the credit period and “we are well within the credit limit.”
Overall, Air India owes over Rs.4,170 crore to public sector oil companies in unpaid jet fuel bills, according to figures tabled in Parliament.
The oil companies decided to stop ATF supplies, saying Air India had not honoured its commitment to make payments for jet fuel it bought from the oil companies even after expiry of the 90-day credit period.
“The government had last year asked us to give a 90-day credit period to Air India, which we diligently did. As per that, payments for ATF sold to Air India in mid-October were due on January 22 but it did not make any payment,” an oil company official said.
