Latest News

IOC, BPCL, HPCL resume fuel supply to Air India

Public sector oil companies resumed fuel supply to Air India on Saturday evening after talks mediated by the government

PSU Watch Bureau

New Delhi: Public sector oil companies resumed supply of air turbine fuel (ATF) to Air India on Saturday evening after talks mediated by the government, an official spokesperson said. While refusing to divulge more details of the agreement reached earlier this week, the spokesperson said that the cash-strapped airline has agreed to payment terms for future ATF purchases.

Supply had been cut since Aug 22

Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had snapped fuel supply to the national carrier on August 22. The ATF supply had been stopped at six airports, including Kochi, Mohali, Pune, Patna, Ranchi and Vizag, over payment defaults. A joint statement released by the three OMCs said that Air India owed Rs 4,500 crores in unpaid fuel bills with payments being delayed by almost eight months.

Air India had violated its credit period

As per the agreement with OMCs, Air India has a 90-day credit period. This means that the ATF it buys on a given day has to be paid for in three months. However, Air India had not been making payments, forcing oil firms to snap supplies. Air India uplifts about 250 kilolitres (kl) of ATF at the six airports on a daily basis. ‎Air India has a debt of over Rs 58,000 crore.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

NTPC revises 2032 capacity addition target by 15% to 149 GW, earmarks Rs 7 lakh crore investment

NLC India commissions 1st phase of 300 MW solar project in Rajasthan

NaBFID to borrow $ 1 billion from foreign shores in FY'26; sees tariffs not impacting disbursements

NABARD aims to undertake maiden ECB in FY26: Chairman

SEBI proposes relaxed norms for large IPOs, steps up crackdown on unregistered financial influencers