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Oil companies likely to resume fuel supply to Air India at six airports

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Published : Sep 5, 2019, 2:15 PM IST

The oil companies are likely to resume oil supply to Air India at the six airports within a day or two.

Air India

New Delhi: Oil marketing companies (OMCs) are likely to resume fuel supply to Air India within two days at the six airports where it has been stopped over non-payment of dues, a senior government official said on Wednesday.

The state-owned OMCs stopped supplying fuel to Air India flights in Pune, Vizag, Cochin, Patna, Ranchi and Mohali since August 22. The firms had also threatened to stop supply at Hyderabad and Raipur airports.

"A meeting was held between senior officials of the Ministry of Civil Aviation, Air India and the three OMCs. Air India assured them that while old dues can not be cleared right now, it will surely pay on time for all the current purchase of fuel," said the official.

Read more:"Structural incentives" drawing firms to bank financing: RBI

The state-run carrier owes about Rs 4,300 crore in dues to the three OMCs -- Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd.

"The oil companies are likely to resume the oil supply at the six airports within a day or two. They will not stop fuel supply at Hyderabad and Raipur," the official said.

Air India does not operate international flights from the six airports where the fuel supply was stopped.

New Delhi: Oil marketing companies (OMCs) are likely to resume fuel supply to Air India within two days at the six airports where it has been stopped over non-payment of dues, a senior government official said on Wednesday.

The state-owned OMCs stopped supplying fuel to Air India flights in Pune, Vizag, Cochin, Patna, Ranchi and Mohali since August 22. The firms had also threatened to stop supply at Hyderabad and Raipur airports.

"A meeting was held between senior officials of the Ministry of Civil Aviation, Air India and the three OMCs. Air India assured them that while old dues can not be cleared right now, it will surely pay on time for all the current purchase of fuel," said the official.

Read more:"Structural incentives" drawing firms to bank financing: RBI

The state-run carrier owes about Rs 4,300 crore in dues to the three OMCs -- Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd.

"The oil companies are likely to resume the oil supply at the six airports within a day or two. They will not stop fuel supply at Hyderabad and Raipur," the official said.

Air India does not operate international flights from the six airports where the fuel supply was stopped.

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BIZ-GST-LOTTERY (RPT)
Lottery industry pitches for uniform GST rate of 12%
(Eds: Corrects spelling error in para 1)
         New Delhi, Sep 4 (PTI) The lottery industry has pressed for a uniform GST rate of 12 per cent and removal of tax on the prize money, saying the existing dual rate is hampering the growth of the business.
          Currently, a GST of 12 per cent is levied on state lotteries sold within a state and 28 per cent on those sold outside that state.
          To sort out differences in the views among states, the GST Council had earlier constituted an eight-member group of ministers under the chairmanship of Maharashtra Finance Minister Sudhir Mungantiwar.
          The Council in its July meeting had also decided to seek legal opinion from the Attorney General on the issue.
          In a representation made to Finance Minister Nirmala Sitharaman, All India Federation of Lottery Trade & Allied Industries suggested that the GST Council could consider imposing GST on lotteries after abating the prize money component of the lottery ticket since the said amount never forms part of the income in the lottery trade.          
          "In the alternative, we represent and request that the discriminatory rate of tax be set aside and all the lotteries may be taxed at the rate of 12 per cent after adjusting the prize money component from the face value of lottery ticket," the association's vice president Kamlesh Vijay said in the representation.
          Currently, all lotteries are organised by states as per the provisions of Lottery Regulation Act 1998.         
          According to Vijay, who is also group CEO of of Sugal & Damani, the lotteries were taxed at 6 per cent before the implementation of the GST with effect from July 1, 2017.
          Currently, lotteries are permitted in about 10 states, including Maharashtra, West Bengal, Punjab and Arunachal Pradesh. Lotteries have been operating in the country since 1969. PTI DP CS
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