NEW DELHI: Airline company Air India owes three state-owned oil firms Rs 5,000 crore in unpaid fuel bills with payments being delayed by almost eight months, forcing retailers to snap supplies, Indian Oil CorpNSE 4.24 % (IOC) said on Friday.
"A joint decision has been taken to stop air India's fuel supply at Kochi, Mohali, Pune, Ranchi, Patna and Visakhapatnam airports," Indian Oil said in a statement on behalf of the three oil companies. The companies have decided not to pay a bill of Rs 5,000 crore owed to Air India for a long time. The total amount outstanding on Indian Oil includes interest.
According to Indian Oil, Air India has 90 days to pay the fuel bill. The bill has to be paid within 90 days from the day the fuel is sold. However, the period has crossed 230 days in the last two years. The Government can hand over the airline to private hands.