Air India allowed to take fuel on credit for 2-3 months

In a major relief for Air India, Petroleum Ministry today decided to grant two to three months credit to the troubled airline for jet fuel instead of making daily payments.

The national carrier had been put on cash-and-carry mode by public sector oil companies since last December as it owes more than Rs 2,000 crore to them.

Air India has been paying Rs 16.5 crore a day for lifting aviation turbine fuel (ATF) for its day-to-day operations.

The decision on providing fuel credit was taken by a Group of Ministers, headed by Finance Minister Pranab Mukherjee, which also reviewed the latest financial and operational performance of the ailing carrier, Civil Aviation Minister Vayalar Ravi said.