Media reports indicate that some state-run oil marketing companies (OMCs) agreed to sell aviation turbine fuel (ATF) to the loss-making Air India at a concessional rate at the behest of the government.
It is learnt that Indian Oil Corporation (IOC) agreed to sell fuel to Air India at a discount of 8 per cent. Some reports indicate that Air India will be charged Rs 5,300 lower than the market rate by IOC.
From January 1, the national carrier may get ATF from IOC at the concessional rate.
The government’s move to direct OMCs to sell diesel at a discount to Air India contracts contradicts Union Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi’s statement in Parliament earlier.
She assured in Parliament that government has will not ask for discount on fuel to the airline, which is already owes Rs 4,324 crore to the oil companies.
Air India already owes Rs 4,324 crore to state-run oil companies. Agency reports indicate that Minister Lakshmi told Parliament that of the Rs 4,324 crore Air India owes to state-owned oil companies, Rs 2,038 crore was overdue outstanding excluding interest and another Rs 2,753 crore overdue outstanding with interest.