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Nepal Oil Corporation Borrows Money
By KTM Metro Reporter
February 11, 2011: the state-run oil company called Nepal Oil Corporation (NOC) has borrowed Rs 800 million from Employees’ Provident Funds (EPF) with the guarantee provided by the Government of Nepal; the government has provided the NOC with the guarantee of Rs 1.3 billion for borrowing money from banks to ease the running cost, ‘The Rising Nepal’ of February 11, 2011.
NOC needs to take huge loans from other banks to be able to pay the large amount of the debt it has accumulated during the previous government; it has paid Rs 480 million to the IOC: Indian Oil Corporation has stopped supplying petroleum products to NOC for not paying the dues. NOC has to pay Rs. 2.27 billion to the IOC following the second installment.
NOC has suffered a heavy loss not only from price rise in the international market but also from the concerned ministers of the past Madhav Government taking petroleum products from NOC gratis. NOC has been anomalous in supplying petroleum products to consumers more than often needing them to line up for filling their petrol tanks.
