PM promises Rs 1 billion to cash strapped NOC to ease fuel supply

Prime Minister Girija Prasad Koirala has promised that the government would issue another Rs 1 billion in loans to Nepal Oil Corporation (NOC) to ease its mounting debts and help it import more fuel to normalise fuel supply in the country faced with a resurgence of its shortage.

This assurance comes a day after NOC, a state-owned venture, warned of grave petroleum crisis within few days as it has been unable to secure enough imports from its Indian supplier.

The Prime Minister told Minister for Industries, Commerce and Supplies, Shyam Sundar Gupta, during a meeting in Baluwatar on Friday that he had already asked the Finance Ministry to release the loan amount but a formal decision on the matter would be taken by the Council of Ministers, it is learnt.

During the meeting, Minister Gupta had drawn the attention of the Prime Minister to the grave financial crisis of NOC because of which it has cut down the imports by almost half.

The government had issued Rs 800 million in loans to NOC for importing more fuel last week. However, NOC officials said the import rates have gone so high, the money would fail to ear up the import sustainability.

The fuel shortage in the country has again deepened with queues of customers in front of petrol stations becoming a normal sight in Kathmandu valley and outside. nepalnews.com ag May 23 08

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