The petroleum ministry has come down heavily on the default by airline companies even on their monthly installments for clearing fuel bill outstanding of oil marketing companies (OMCs).
Petroleum minister Murli Deora made it clear that the ministry will provide necessary help for the survival of crisis-ridden Indian airlines but it will not be at the cost of OMC?s financial health. Deora?s statment is crucial when the government decided to give airline companies time till March 2009 to pay their fuel bills outstanding of Rs 2,962 crore to the three state-owned OMCs. The carriers have to clear the bills in six equated monthly installments.
Deora told FE ?The petroleum ministry will do all possible for the survival of airlines. They should better manage their house and make monthly installment of dues. Airlines? default even on the monthly installment payment as decided upto March next year is matter of concern.?
Deora was speaking to FE after ONGC and Gail India handed over a total of Rs 24 crore to the Maharashtra run JJ Hospital situated in the south Mumbai for the purchase of various medical equipments.
Deora said that the OMCs are still facing financial crisis even though the fall in crude price has brought in some relief.
Deora?s tough stand is a warning to the defaulting airlines to pay up or face the axe, a ministry official said.
OMCs had briefed the minister about the default by airlines even on the six monthly installments upto March next year. The government also decided to give an extended credit tenure of 90 days to the airlines, against 60 days now, for fresh purchases of the aviation turbine fuel (ATF) from the oil companies. This arrangement, too, will continue till March 2009.
Of the total outstanding bill of Rs 2,926 crore, Rs 2,131 crore is in default?beyond the credit period. Jet Airways has an outstanding of Rs1,576 crore, of which Rs321 crore is beyond the credit period.
Kingfisher Airlines has a due of Rs 983 crore, of which Rs 924 is beyond the credit period. National Aviation Company of India Ltd, which does not have any credit period, has an outstanding of Rs 886 crore.