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HPCL Declined Credit Line for Kingfisher Airlines

Hindustan Petroleum Corp (HPCL) declined to reopen a credit line for the debt-stricken Kingfisher Airlines.

Oct 9, 2010 17:33 IST

Hindustan Petroleum Corp (HPCL) declined to reopen a credit line for the debt-stricken Kingfisher Airlines. On 16 July 2010 the Petrolium Ministry had in a letter to the HPCL asked the HPCL board to review the "cash-and-carry system" as  it was not in the interest of the country if the an airline was "grounded". However the HPCL board decided to continue supply of aviation turbine fuel to Kingfisher strictly against cash payment. As a reason for their decision it was stated that HPCL ran a loss of Rs 1800 crore for the first quarter of 2010-11 and it was not possible for the board to abide by the ministry’s request.