Air India's debt to oil cos: A whopping Rs 4,170 crore!

National flag carrier Air India owes over Rs 4,170 crore (Rs 41.7 billion) to public sector oil companies in unpaid jet fuel bills, Minister of State for Petroleum and Natural Gas R P N Singh said on Tuesday.

"As on November 30, total dues outstanding on account of aviation turbine fuel supplied to Air India by public sector oil marketing companies is Rs 4,170.50 crore (Rs 41.7 billion)," he said in a written reply to a question in Rajya Sabha.

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Of this, Rs 3,588.17 crore (Rs 35.88 billion) is the principal and Rs 582.33 crore (Rs 5.82 billion) is the interest.

Air India owes Rs 2,380.88 crore (Rs 23.8 billion) in principal amount to Indian Oil Corporation, Rs 635.08 crore (Rs 6.35 billion) to Bharat Petroleum Corporation Ltd and Rs 573.01 crore (Rs 5.73 billion) to Hindustan Petroleum Corporation Ltd.

Besides, it owes an interest of Rs 423.43 crore (Rs 4.23 billion) to IOC, Rs 92.73 crore (Rs 927.3 million) to BPCL and Rs 66.17 crore (Rs 661.7 million) to HPCL.

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"Oil marketing companies have reported that they had requested Air India for payment of dues, failing which they could take appropriate action for recovery of dues, including restriction of supplies," Singh said.

The government has decided to extend credit facility of three months on ATF supplies to provide Air India with some time to complete its financial restructuring exercise which is currently going on, he said.

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"Accordingly, (Oil) Ministry has advised the public sector oil marketing companies to extend three months credit to Air India, while protecting their commercial interests," he added.

Of the Rs 4,170.50 crore (Rs 41.7 billion) outstanding, Air India's total overdue oustanding including interest is Rs 3,008.47 crore (Rs 30.08 billion).

Rs 1,996 crore (Rs 19.96 billion) is overdue to IOC, Rs 570.04 crore (Rs 5.7 billion) to BPCL and Rs 442.43 crore (Rs 4.42 billion) to HPCL.