Stopping in need of gasoline provide cuts to disinvestment-bound Air India, state-owned oil retailers have sought the petroleum ministry’s intervention to get better their dues including as much as over
Rs 3,000 crore, authorities officers and firm executives informed The Indian Express.
The nationwide service, on its half, has approached the central authorities to get its dues of over Rs 500 crore cleared. The authorities owes Air India the cash on account of VVIP journey, evacuation operations and different official journey.
Typically, oil advertising corporations droop gasoline provide to airways that haven’t paid previous dues — Air India was subjected to such a transfer in August 2019.
“Oil marketing companies have approached the petroleum ministry as Air India had stopped paying interest on long-term dues and for ongoing consumption,” a authorities official mentioned, on situation of anonymity.
Responding to the oil ministry, the civil aviation ministry has requested that oil corporations proceed supplying gasoline to Air India, on condition that all the airways business is dealing with monetary stress because of the pandemic, the official mentioned, including that “no one wants to stop the operations” of the nationwide airline.
A senior govt at one of many oil advertising corporations mentioned choices to cease provide to Air India or put it on a cash-and-carry foundation are taken after consultations with the petroleum ministry. Air India’s every day gasoline invoice provides as much as about Rs 5-6 crore. The Airports Authority of India (AAI) had in July final 12 months — simply over a month after the home flight suspension was lifted — warned Air India that it might put the airline on cash-and-carry till it cleared its dues of Rs 1,000 crore on the time.
In August 2019, the three oil retailers had halted provide to Air India at six airports after repeated reminders over non-payment of dues. At the time, Air India had mentioned that “in absence of equity support”, the airline couldn’t service its debt liabilities.This time, although, punitive motion has been averted because the airline is divestment-bound and any coercive motion might probably affect investor curiosity.
E-mail queries despatched to the petroleum and civil aviation ministries went unanswered. Air India, Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp didn’t reply to requests for remark.
In 2019-20, the airline made a web lack of almost Rs 8,000 crore, and that is anticipated to extend to Rs 10,000 crore for 2020-21 (April-March) interval, which hasn’t been reported but. For 2020-21, the airline’s revenues dropped considerably to Rs 12,138.77 crore from Rs 27,546.58 crore within the earlier monetary 12 months.
In February this 12 months, the then Civil Aviation Minister Hardeep Singh Puri, who’s now the Petroleum Minister, had famous in a written reply to the Rajya Sabha: “The amounts due from the Government of India have been accounted for in the profit and loss accounts in the respective years and the outstandings are reflected as receivables in the balance sheet. There is no significant impact of the government outstanding on the losses incurred by Air India. However, regular follow-up for the same are made by Air India/ Ministry of Civil Aviation and normally such dues are cleared from time to time”.
