Full-service carrier Kingfisher Airlines has sought permission from the petroleum ministry to extend the date for paying dues to public sector oil companies for aviation turbine fuel.
The last date of payment is March 31 and industry sources said that the airline has asked for an extension of more than six months beyond the last date.
On October 23 last year, public sector oil companies, including Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, had given Indian carriers Kingfisher, Jet and Air India a breather on their oil dues worth around Rs 2,900 crore by allowing them to pay in six equal monthly instalments till March 31. Kingfisher has asked the oil ministry that the date be extended since it would be unable to clear the dues in the stipulated time.
An airline executive who did not wish to be identified confirmed the development as did an oil ministry official. However, the official said that the ministry would not agree to extend the date.
According to a statement given by Dinsha Patel, minister of state for petroleum and natural gas, in Parliament a few days back, Kingfisher still owed around Rs 744 crore (Rs 7.44 billion).
An IOC executive had clarified a few days back that Kingfisher owed Rs 175 crore (Rs 1.75 billion)( to the company as on February 12. When contacted, an IOC official said that Kingfisher was still more than two months short of the equal monthly instalments to be paid till March 31.