Major oil companies on Thursday have issued an ultimatum to Air India to make the monthly lump sum payment by October 18.
The oil giants have even threatened to stop the fuel supply at six major domestic airports if the payment is not done.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
In a letter sent to Air India on Thursday, the three oil PSUs – Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) – stated:
“The outstanding has not come down considerably in the absence of the committed monthly lump sum payment’.
In August, the three fuel retailers had stated that Air India owed Rs 5,000 crore in unpaid fuel bills with payments being delayed by almost eight months.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
On August 22, Indian Oil Corp, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had stopped fuel supplies to Air India at six airports of Kochi, Mohali, Pune, Patna, Ranchi and Vizag over payment defaults.
However, after the intervention of the Ministry of Civil Aviation, they resumed the fuel supply on September 7, according to reports.
On October 5, the oil companies had told Air India that if it did not make the monthly lump sum payment, they will stop fuel supply from October 11 at ‘six major domestic airports’.
Subsequently, Air India sent a letter on Thursday, requesting oil companies to not stop the fuel supply.
The oil companies wrote back on Thursday itself, stating ‘while we are in receipt of your letter dated 10th October, 2019, requesting oil companies against stoppage of fuel supply, it has been observed that no timelines have been mentioned with respect to the lump sum payment’, reports further stated.