Fuel supply restored after Air India clears partial dues

Supply had been cut due to erratic payments from Air India towards ATF bill.

File photo

Hours after oil marketing companies reportedly cut the supply of aviation fuel to Air India for its domestic flights, the national carrier is learnt to have cleared part of the dues it owed.

Supply of ATF from eight locations  - Mohali, Patna, Pune, Trivandrum, Lucknow, Vishakhapatnam, Coimbatore and Jaipur - had been cut with effect from 1600hrs on Monday. Within hours, Air India is learnt to have made a partial payment and supply lines were restored.

The decision to cut supply in the first place came into effect reportedly because Air India had defaulted on daily payments it makes to oil marketing companies.  It owes a total of Rs 5000 crore and has been paying a daily sum of Rs 20 crore. It is this daily amount that has reportedly been erratic, compelling the oil companies to suspend supply.

(Reporting: Swati Khandelwal/Zee Business)