Oil companies stop refueling of Air India flights as pending dues bite

Domestic oil marketing companies have decided to stop fuel supply to India's national carrier Air India in several cities due to pending dues.

Also Read: Talks on Air India bailout package at 'advanced stage'

The oil companies have suspended supplies to Air India in eight locations including Mohali, Patna, Pune, Trivandrum, Lucknow, Vishakhapatnam, Coimbatore and Jaipur from 4 pm on Monday.

Refuelling of all domestic Air India flights from eight locations has been stopped.

The Indian oil companies have been discussing issues related to the clearing of dues worth Rs 5,000 crores with  Air India which has been pending. Air India has so far been paying Rs 20 crore daily but has been defaulting on payments lately. The marketing companies want past dues to be cleared first, reports said.

Sources said Air India on its part has knocked on government's door for capitalisation of Rs 2,000 crore but there have been no bailout moves till now.