Government provides loan guarantee to NOC

With the aim of resolving the problem of petroleum shortage, the government has decided to provide guarantee for loans worth Rs 1.2 billion for Nepal Oil Corporation (NOC).

According to government spokesperson and Information Minister Krishna Bahadur Mahara, the government has decided to instruct Employees Provident Fund (EPF) to provide loan of Rs 800 million and Citizen Investment Fund (CIF) to provide loan of Rs 400 million to the NOC on its guarantee.

The government hopes that the loan amount will help NOC pay some of its dues to Indian Oil Corporation (IOC), which would then ease the supply of fuel. Currently, the bandhs in Terai as well as lack of adequate supply have triggered acute shortage.

In the last few days, the fuel shortage has worsened. On Tuesday, long queues of vehicles could be seen in petrol pumps that sold the fuel. nepalnews.com sd Jul 04 07