HPCL cuts fuel supplies to Kingfisher Airlines

HPCL cuts fuel supplies to Kingfisher Airlines

Hindustan Petroleum Corp (HPCL) briefly cut aviation fuel supplies to Kingfisher Airlines earlier in a dispute over payment.

State-owned HPCL said Kingfisher said money owed by the carrier had exceeded the bank guarantee it had furnished against default.

As a result, supplies were cut for ten hours, with Kingfisher placed on a cash-and-carry deal.

Supplies were resorted after ten hours after the Vijay Mallaya-owned private airline paid Rs10 crore for the fuel.

Kingfisher buys aviation turbine fuel worth some Rs6 crore per day from HPCL has a bank guarantee of Rs462 crore to cover against any default.

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