HPCL briefly stops jet fuel supply to Kingfisher Airlines
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HPCL briefly stops jet fuel supply to Kingfisher Airlines

Last Updated: Monday, July 18, 2011, 23:44
 
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HPCL briefly stops jet fuel supply to Kingfisher Airlines
New Delhi: State-owned Hindustan Petroleum Corp Ltd (HPCL) on Monday briefly stopped jet fuel supply to Kingfisher Airlines but resumed after the Vijay Mallaya-owned private airline paid for the aviation turbine fuel.
     
HPCL put Kingfisher on cash-and-carry and stopped jet fuel (ATF) supplies after the private carrier's outstanding exceeded the bank guarantee it had furnished against default, an official said.
     
The official said supply was stopped for an aircraft of Kingfisher Airlines.
     
Soon after, Kingfisher paid Rs 10 crore and HPCL resumed supplies.
     
The official said Kingfisher, which buys aviation turbine fuel worth some Rs 6 crore per day, had given state-owned firms a bank guarantee of Rs 462 crore to cover against any default.
     
When the guarantee was not sufficient to meet Kingfisher's fuel purchases, HPCL put the private airline on cash and carry and stopped supplies.
     
The supplies were restored once Kingfisher paid Rs 10 crore, he added.

PTI




First Published: Monday, July 18, 2011, 23:44


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