NOC seeks Rs 2 b grant from govt to bail it out from bankruptcy

Nepal Oil Corporation (NOC) has asked the government to grant 2.07 billion rupees to avert its impending bankruptcy.

Managing Director of NOC, Digambar Jhapa, confirmed that the Ministry of Finance has been asked for Rs 2.07 billion, but no official response has come regarding the request.

Talking to Nepalnews, he said there was hardly any option before the cash-strapped corporation than to seek grant from the government to adjust soaring losses and that the ministry officials have informally revealed that around 800 million rupees could be granted.

The loss-making government venture currently owes Rs 2 billion to its Indian supplier, Indian Oil Corporation (IOC), which had frequently cut down the supply of petroleum products in the past as the NOC failed to clear the dues on time. According to Jha, total loss of the NOC stands at Rs 13 billion.

Meanwhile, Minister for Industry, Commerce and Supplies has said he was not aware of the NOC seeking grants from the government. Quoting him, a report said that there was no possibility of immediate review of petroleum prices even as the price in the international market has constantly soared in recent weeks.

Minister Gupta, who is likely to lose his post once three is a new government, further said he was unable to take any decision without the consent of the seven-party alliance. nepalnews.com mk May 13 08