Air India settles part dues of IOCL, HPCL and BPCL

Last Updated: Tue, Oct 09, 2018 11:31 hrs
Air India (Image Courtesy: IANS)

Debt laden national carrier on Monday said that it had paid part dues to oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Ltd, and Hindustan Petrochemical Ltd.

Air India, according to sources has released Rs 1 billion as part of a payment clearance process.

Senior officials have been reported saying that the national carrier purchased jet fuel from state-owned OMCs. In fact, Air India, it is learnt, procures Jet Fuel in the range of Rs 6 billion every month.

The pay-outs were made after Indian Oil Corporation sent a notice asking Air India to clear dues.

The national carrier which has reported debts in the range of Rs 500 billion has been grappling for some time now. There had been talks of a strategic divestment.

A government initiative looked at a stake sale in the national carrier. But these talks fizzed out in May after finding no takers willing to invest in Air India at it's current levels of debts.

Lastly, the Airliner was reported of selling its heritage building in Mumbai. The Jawaharlal Nehru Port Trust (JNPT) had reportedly shown interest in buying Air India's 23-storey heritage building situated in Nariman Point. The transaction was estimated at Rs 2000 crores but is still being discussed and modalities such as valuations are yet to be finalized.

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