The government is all set to extend loan assistance of Rs 2 billion to cash-strapped Nepal Oil Corporation (NOC) in order to ease the supply of petroleum products in the country.
As per the decision of the Ministry of Finance, the loan is being handed over to NOC through the Citizen Investment Fund and Employees’ Provident Fund.
After NOC was unable to clear past dues amounting to billions of rupees, Indian Oil Corporation (IOC), the main supplier of oil to NOC, had curtailed the daily supply of petroleum products by almost 30 percent. The latest move by IOC created a stark shortage of petroleum products all over the country with people queuing up with their bikes and cars in front of gas stations for petrol and diesel.
However, the loan amount provided by the government is still short of Rs 5 billion initially demanded by NOC to clear its dues.