In a breather for Air India, OMCs not to stop ATF in Hyd, Raipur

Mumbai: In a big relief to cash-starved Air India, oil marketing companies Friday deferred a decision to suspend fuel supplies to the airline in Hyderabad and Raipur over non-payment of dues.

Last month, Indian Oil-led OMCs had asked the national carrier to make a lump-sum payment towards outstanding dues, including interest, at the earliest or else face cut in fuel supplies at two more airports and from August 22, they stopped supplies to Air India in Pune, Vizag, Cochin, Patna, Ranchi and Mohali.

"The ban on fuel supply at these six airports continues. Supply at the rest of the airports remains normal," Air India spokesperson said in a statement Friday.

Though Air India has been on a cash-and-carry mode since April, and has been paying Rs 18 crore daily towards fuel bills, OMCs sought clearance of all dues at the earliest.

The IOC provides 90-day credit to Air India without collaterals, but the dues have been mounting, and it must be over 240 days now. The airline's total fuel bill dues stood at 4,600 crore as of end-March, which came down to Rs 4,300 crore as of end-July.