Oil firm, Hindustan Petroleum has resumed fuel supplies to cash-strapped Kingfisher Airlines Ltd after cutting out supplies overnight over issues relating to the payments of bill.

S. Ramaswamy, a spokesperson for Hindustan Petroleum has said that the company resumed fuel supplies to the troubled airline after resolving issues over fuel bill dues. Te refiner had stopped supplies to the airline yesterday evening. According to estimates, the airline owns more than 4.25 billion rupees ($85 million) to Hindustan Petroleum.

The International Air Transport Association also announced its decision yesterday to suspend Kingfisher from a clearing system due to overdue payments. Kingfisher has said that it was unable to clear dues because the tax authorities in India froze its accounts.

India's union Civil Aviation Minister Ajit Singh has said that the Kingfisher Airlines should not be closed down just because it making losses and the country's banks are not ready to offer it funds.

The aviation minister had said that there are no possibilities of extending government financial to the cash-strapped Kingfisher Airlines. The ministry asked the Airports Authority of India to grant Kingfisher additional time to pay its dues.