Mumbai/New Delhi: Air India Ltd owes practically ₹3,000 crore in jet gas dues to a few state-run oil advertising and marketing firms, with funds in some circumstances delayed by a number of months, mentioned two individuals with direct data of the matter requesting anonymity.
The divestment-bound nationwide provider 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 and marketing firm (OMC).
“We’ve got nevertheless, been supplying gas continuous to the nationwide provider even throughout the pandemic,” the official mentioned, including that the OMCs have written to Air India to clear the dues amid rising world crude costs that has elevated the price of operations at state-run refiners.
Air India buys jet gas value ₹5-6 crore day by 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 provider on a cash-and-carry foundation for gas provides.
The OMCs have prior to now as effectively, quickly halted gas provides to Air India as a result of mounting dues, solely to renew later after the airline partially cleared its payments.
“There’s a working capital crunch on the airline as a result of which pending dues in the direction of OMCs are delayed,” mentioned an official with Air India. “Nonetheless, these dues are finally 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 inner issues. Spokespersons of IOCL, BPCL and HPCL additionally declined to remark.
Air India is predicted to put up a money lack of round ₹6,000 crore this fiscal via March, up from ₹3,600 crore final yr. Money loss means an entity is just not producing constructive money movement from its operations.
Total, 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 8 February, citing senior airline officers.
To make up for the money loss, Air India has raised about ₹5,500 crore to this point 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. To date, Tata group and an worker consortium headed by a board member of the nationwide provider are amongst events to submit expressions of curiosity.