The decision came following the intervention of Civil Aviation Minister Vayalar Ravi who met Petroleum Minister S Jaipal Reddy to sort out the issue.
In the meeting, Ravi asked Reddy to direct the oil marketing companies to provide aviation turbine fuel to Air India so that the national carrier can restore its cancelled or curtailed flights, sources said.
Following the meeting, in which chief executive officers and managing directors of oil companies and Air India and secretaries from both the ministries were present, it was decided that oil companies would provide Air India additional fuel for next three months to allow it to operate all its flights.
Air India was put on cash and carry mode of debit from December last year on account of non-payment of Rs 2400 crore (Rs 24 billion) dues to the three state-run
India looks at other banks for oil payment to Iran
Daikin to develop India-specific products
IOC mulls foray into merchant power
Indian oil firms set to report Rs 50,000 cr loss
1,600 AI pilots get Rs 800 crore as salary