Stopping short of fuel supply cuts to disinvestment-bound Air India, state-owned oil retailers have sought the petroleum ministry’s intervention to recover their dues adding up to over

Rs 3,000 crore, government officials and company executives told The Indian Express.

The national carrier, on its part, has approached the central government to get its dues of over Rs 500 crore cleared. The government owes Air India the money on account of VVIP travel, evacuation operations and other official travel.

Typically, oil marketing companies suspend fuel supply to airlines that have not paid past dues — Air India was subjected to such a move in August 2019.

“Oil marketing companies have approached the petroleum ministry as Air India had stopped paying interest on long-term dues and for ongoing consumption,” a government official said, on condition of anonymity. Responding to the oil ministry, the civil aviation ministry has requested that oil companies continue supplying fuel to Air India, given that the entire airlines industry is facing financial stress due to the pandemic, the official said, adding that “no one wants to stop the operations” of the national airline.

Source: The Indian Express