Mumbai/New Delhi: Air India Ltd owes almost ₹3,000 crore in jet gas dues to 3 state-run oil advertising corporations, with funds in some circumstances delayed by a number of months, mentioned two individuals with direct information of the matter requesting anonymity.
The divestment-bound nationwide service owes about ₹2,000 crore to Indian Oil Corp. Ltd (IOC), and a complete of about ₹1,000 crore to Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL), mentioned one of many two individuals cited above and who can also be a senior official with a state-run oil advertising firm (OMC).
“We’ve nevertheless, been supplying gas continuous to the nationwide service even throughout the pandemic,” the official mentioned, including that the OMCs have written to Air India to clear the dues amid rising international crude costs that has elevated the price of operations at state-run refiners.
Air India buys jet gas value ₹5-6 crore each day from the OMCs. The airline was earlier given a 90-day credit score interval however the extended delay in clearing the dues has led OMCs to place the service on a cash-and-carry foundation for gas provides.
The OMCs have previously as nicely, briefly halted gas provides to Air India resulting from mounting dues, solely to renew later after the airline partially cleared its payments.
“There’s a working capital crunch on the airline resulting from which pending dues in direction of OMCs are delayed,” mentioned an official with Air India. “Nevertheless, these dues are ultimately paid again. Additionally, since each Air India and OMCs are owned by the federal government, such conditions are shortly resolved,” the official mentioned.
A spokesperson for Air India mentioned the airline doesn’t touch upon its inside issues. Spokespersons of IOCL, BPCL and HPCL additionally declined to remark.
Air India is anticipated to put up a money lack of round ₹6,000 crore this fiscal by means of March, up from ₹3,600 crore final yr. Money loss means an entity just isn’t producing constructive money move from its operations.
General, the airline is prone to incur a web lack of ₹9,500-10,000 crore this fiscal, up from a ₹8,000 crore loss recorded within the earlier yr, Mint had reported on Eight February, citing senior airline officers.
To make up for the money loss, Air India has raised about ₹5,500 crore to date this fiscal yr, and is prone to elevate one other ₹500 crore by the tip of March. The federal government goals to finish the privatization of Air India in FY22. Up to now, Tata group and an worker consortium headed by a board member of the nationwide service are amongst events to submit expressions of curiosity.