Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA
Ministry of Petroleum & Natural Gas

RAJYASABHA
UNSTARRED QUESTION NO.284
TO BE ANSWERED ON 2" AUGUST 2011
Outstanding Dues Owed by Private Airlines to Oil PSUs.

284.     SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of PETROLEUM & NATURAL GAS be pleased to state:

(a)    The present status of outstanding dues of public sector oil companies against private airlines operating in the country, company wise and airlines-wise; and;
(b)    The steps taken by oil companies to recover their dues from the airlines within a time¬frame?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI R.P.N. SINGH)

(a);As on 30.06.20 II, Rs.1518.15 Crore are owed by Private Airlines of Oil Marketing Companies (OMCs) against ATF supplies. Company-wise and airlines-wise detail is given below:

In Crores      

Name of OMC

Name of Private Airline

As on 30.06.2011

Security as on 30.06.11

Indian Oil Corporation Ltd. (IOC)

Jet Airways

545.55

594.00

Go Airlines

51.25

54.00

Kingfisher

0.70

NIL

Spice Jet

90.54

95.00

Bharat Petroleum Corporation Ltd. (BPCL)

Jet Airways

134.76

140.00

Go Airlines

1.41

NIL

Kingfisher

33.26

(As on 18.7.2011)

40.00

Hindustan Petroleum Corporation Ltd. (HPCL)

Jet Airways

0.03

0.07

Kingfisher

641.37

487.00

Paramount

19.28

NIL

Total

 

1518. I5

 

(b): In case Airlines fails to pay their dues. OMCs take action for recovery of dues in line with the mutually agreed commercial terms between them and the Airlines. The defaulting Airlines are also put on 'Cash and Carry' and interest is recovered on all overdue payments. OMCs also encash bank guarantee and post dated cheques for recovery of their outstanding dues wherever applicable as per commercial terms agreed between them and Airlines. However, in case OMCs fail to recover their outstanding dues as per commercial agreement between them and Airlines, OMCs resort to take legal route by filing suit against the defaulting Airline in the Court of law for recovery of same.