New Delhi: Unpaid Indian fuel bills around RS 5,000 Crore weighing on fuel retailers that require additional cash to buy more dollars to pay crude oil more expensive when demand increases.
Industry executives said they had not heard from the government on the timeline for payments, although the center said it would take over the total contribution of carrier from almost RS 16,000 crore and non-core assets through the parent company before Tatas took over.
Indianoil only contributed RS 3,000 Crores, or 60%, an unpaid Indian water fuel bill.
Other fuel suppliers together contribute the remaining 2,000 crore RS contributions, according to industry estimates.
A large number of contributions will be dragged in the cash flow of the largest oil refinement in the country and fuel retailers.
Taking over the responsibility by the proposed holding company, the Indian Air Asset Company, can guarantee payments in the future but will long before the new entity can monetize non-core assets, it will take over and delete contributions.
Meanwhile, Indianoil and other suppliers may have to borrow money to buy crude oil.
Crude oil prices are in power at a seven-year high of $ 85 per barrel, which tells about the cash requirements of oil companies.
Fuel demand also increased in a trote, with demand for gasoline beyond the pre-pandemic level, diesel consumption approaches the jet fuel sales at 75% 2019.
The parent company must take over Indian non-core assets such as land.
, Buildings and paintings worth Rs 14,718 Crore.
In addition, the entity will also take over the airport operator bills that have not been paid and other vendors, which add up to RS 15,834 crore, or more than a quarter of the Carrier RS 61,562 Crore debt at the end of August.
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