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The government has no plans to offer discounts on jet fuel (ATF) sales to loss-making national carrier Air India (AI), which already has accumulated Rs 4,324 crore in unpaid fuel bills, the Lok Sabha was informed today.
The Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi replied in negative to a question, when asked if the government proposed to provide discount to Air India on fuel sales.
In a written response, she said Air India owes state-owned oil companies Rs 4,324 crore in outstanding fuel bills as on February 28, 2013.
Of this, Rs 2,038 crore was overdue outstanding excluding interest and another Rs 2,753 crore overdue outstanding with interest.
Air India owes Indian Oil Corp (IOC) Rs 2,545 crore, Bharat Petroleum Corp Ltd (BPCL) Rs 779 crore and Hindustan Petroleum Corp Ltd (HPCL) Rs 1,000 crore, she added.
Lakshmi said aviation turbine fuel (ATF) is not under the purview of the Petroleum & Natural Gas Regulatory Boarrd (PNGRB).
Earlier this month, the minister had told Parliament that unlike private carriers such as Jet Airways and Kingfisher Airlines, Air India has not given any security as insurance against default.
Air India had a total outstanding of Rs 4,277.11 crore as on December 31, 2012, of which a sum of Rs 2,639.65 crore is overdue payment.
Overdue payment is the outstanding that has remained unpaid even after expiry of a 90 day credit or grace period provided by the oil companies.
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