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Rediff.com  » Business » Kingfisher owes oil PSUs Rs 950 cr

Kingfisher owes oil PSUs Rs 950 cr

July 16, 2009 17:44 IST

Vijay Mallya-owned Kingfisher Airlines owes state-run oil companies over Rs 950 crore (Rs 9.50 billion) in unpaid fuel bills while financial crisis-hit NACIL has cleared almost two-thirds of its outstanding.

Kingfisher Airlines owned Rs 1,030.08 crore (Rs 10.30 billion) in unpaid bills for buying jet fuel from Indian Oil, Bharat Petroleum and Hindustan Petroleum on December 31, 2008. It stood at Rs 950.46 crore (Rs 9.504 billion) as on May 31, 2009, Petroleum Minister Murli Deora said in a written reply in Lok Sabha.

On the other hand, National Aviation Company India Ltd (NACIL),which operates the merged state carriers Air India and Indian Airlines, has reduced its outstanding from Rs 1,311.91 crore (Rs 13.119 billion) to Rs 472.93 crore (Rs 4.729 billion).

Jet Airways has reduced outstanding from Rs 1,266.21 crore (Rs 12.662 billion) to Rs 760.07 crore (Rs 7.60 billion), Deora said.

Kingfisher owned most to HPCL, with its unpaid fuel bill running into Rs 598.78 crore (Rs 5.987 billion). It owed HPCL Rs 523.34 crore (Rs 5.233 billion) on December 31, 2008. Kingfisher also owned BPCL Rs 314.32 crore (Rs 3.143 billion) and another Rs 37.36 crore (Rs 373.6 million) to IOC.

NACIL reduced its outstanding towards IOC from Rs 877.13 crore (Rs 8.771 billion) to Rs 307.49 crore (Rs 3.074 billion) while that towards BPCL came down to Rs 91.56 crore (Rs 915.6 million) from Rs 250.43 crore (Rs 2.504 billion). It owned HPCL Rs 73.88 crore (Rs 738.8 million), down from Rs 184.35 crore (Rs 1.843 billion), Deora said.

In case airlines fail to pay their dues, they are put on 'cash and carry' (pay cash to buy fuel) and interest is recovered on all overdue payments, he said.

Deora said Jet Airways had reduced its outstanding towards IOC from Rs 1,053.08 crore (Rs 10.53 billion) to Rs 644.96 crore (Rs 6.449 billion). while that towards BPCL to Rs 111.77 crore (Rs 1.117 billion) from Rs 210.46 crore (Rs 2.104 billion).

Besides the three airlines, Paramount Airways owed Rs 25.82 crore (Rs 258.2 million) to oil companies and Spice Jet Rs 16.24 crore (Rs 162.4 million).

"As on December 31, 2008 and May 31, 2009, five airlines owned Rs 3,658.06 crore (Rs 36.58 billion) and Rs 2,225.52 crore (Rs 22.25 billion), respectively, to oil companies," he said.

"The issue of outstanding dues was also taken up with the ministry of civil aviation which advised the airlines to clear their outstanding dues promptly," he added.

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