HPCL refuses to sell fuel on credit to Kingfisher

Refusing to toe the petroleum ministry's line, loss-stricken Hindustan Petroleum Corp (HPCL) has declined to reopen a credit line for the debt-stricken Kingfisher Airlines.
On July 16, the ministry wrote to HPCL that "the Board may be advised to consider a review of cash-and-carry system as a temporary measure considering the fact that it may not be in the country's interest if an airline is grounded".

But the board, which met today, decided to continue supply of aviation turbine fuel to Kingfisher strictly against cash payment. "We are reporting a loss of Rs 1,800 crore for the first quarter (of 2010-11). In such a scenario, it is not possible for the board to advance a single rupee to anyone," said a board member.


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