Saturday, 19th April 2014

Govt to provide Rs 1.65 billion loan to cash-strapped Oil corp

Privacy Policy

The government on Thursday decided to provide a loan of Rs 1.65 billion to the cash-strapped Nepal Oil Corporation (NOC), the state monopoly on supply of petroleum products in the country.

A meeting of the Council of Ministers on Thursday made a decision to this effect.

Minister for Information and Communications and government spokesperson Madhav Prasad Poudel said that of the total loan amount the Employees' Provident Fund (EPF) will provide Rs. 850 million while the Citizens' Investment Trust will be providing Rs. 800 million.

The Government of Nepal is standing as the surety for the loan, Poudel said.

The cabinet also decided to give a green signal to the Ministry of Urban Development to move ahead with the ongoing negotiations with the Asian Development Bank for signing an agreement for a financial aid worth Rs. 2.42 billion for the Melamchi Drinking Water Supply Project.