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    Oil companies may resume fuel supply to Air India at 6 airports today

    Oil companies may resume fuel supply to Air India at 6 airports today

    Oil companies may resume fuel supply to Air India at 6 airports today
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    By Anu Sharma   IST (Updated)

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    Oil companies are likely to resume fuel supply to Air India at six airports today after a meeting between the two stakeholders on Wednesday, sources aware of the development said.

    Oil companies are likely to resume fuel supply to Air India at six airports today after a meeting between the two stakeholders on Wednesday, sources aware of the development said.
    Fuel supply to Patna, Kochi, Vishakhapatnam, Pune, Ranchi and Mohali was stopped two weeks ago.
    As per the meeting, in addition to the daily payment of Rs 18 crore to oil companies, Air India will also pay a lump sum amount of around Rs 100 crore on a monthly basis, sources said.
    “There is no fresh equity support...Sovereign guarantees that have already been approved will be utilised," an official aware of the development said.
    "Whenever Air India stops paying this lump sum amount, the fuel supply will be halted at these six airports," a person in the know of the matter said.
    On August 23, the supply of aviation turbine fuel was stopped to national carrier Air India at six airports Patna, Kochi, Vishakhapatnam, Pune, Ranchi and Mohali due to non-payment of pending dues.
    As per the provisional figures of FY 2018-19, the total debt of Air India Ltd as on March 31, 2019, is Rs 58,351.93 crore.
    In the union budget for 2019-20, the government had not given any substantial financial equity support to Air India and had said it will again initiate the process of its disinvestment.
    The amount of nearly Rs 30,000 crore approved under the turnaround plan in 2012 has already been given to Air India.
    Last year, the government had failed to sell Air India when it had offered a 74 percent stake. While a lot of parties had shown interest, none of them actually submitted bids. Some like IndiGo suggested that they weren't comfortable in a joint venture with the government.
    This year, it is expected that the government may divest over 90 percent stake in the debt-ridden carrier, hence making the deal a lucrative one for the buyer.
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