Nepal Oil Corporation seeks loan from commercial banks
KATHMANDU:
After rejection from Ministry of Finance to lend debt-stricken Nepal Oil Corporation (NOC), it has planned to knock doors of commercial banks for loan.
The state oil monopoly is holding discussion with different commercial banks for the loan to ease the supply of petroleum products at festival season, acting managing director Bachchu Kumar Kafle said, adding that some commercial banks have given green signal for the loan. He, however, did not reveal the names of the banks that the corporation is approaching for the loan. The corporation is compelled to ask for loan to keep the fuel supply smooth during festival season, according to him.
The state oil monopoly needs Rs 500 million immediately to maintain the demand and supply of petroleum products for next two months during Dashain and Tihar. The corporation is still optimist that the Ministry of Finance will release loan, he said, adding that the supply will be hurt in the festive season, if NOC will not get loan on time.
However, some officials at the Nepal Oil Corporation are not optimist that it will get loan from private commercial bank easily. “The corporation should offer convincing collateral to the commercial banks,” the source said, adding that the state oil monopoly is not in the condition to show reliable collateral since it is already reeling under accumulative loss.
On the other hand, Ministry of Commerce and Supplies is also committed to help NOC ask loans with the commercial banks. The ministry will continue fuel supply at any cost during festival season, spokesperson Ganesh Prasad Dhakal said, adding that the state oil monopoly has initiated dialogue for loan with commercial bank after getting a go-ahead from the ministry.
Earlier, the Ministry of Finance on August 22 had informed Nepal Oil Corporation that it could not lend it.
Meanwhile, Nepal Oil Corporation will incur a total of Rs 506 million loss every month, according to a new price list of Indian Oil Corporation received on September 2. The state oil monopoly incurs Rs 7.14 loss on a litre of diesel and Rs 297.97 loss on a cylinder of cooking gas. However, it gets profit of Rs 2.70 on a litre of petrol, Rs 1.50 on a litre of kerosene and Rs 21.90 on a litre of ATF.
Demand
The state oil monopoly has projected the consumption of 16,000 kl petrol, 55,000 kl diesel, 4,000 kl kerosene, 2000 kl ATF (domestic), 6,000 kl ATF (international) and 1,100,000 cylinder cooking gas every month in the domestic market.
Source: THT
After rejection from Ministry of Finance to lend debt-stricken Nepal Oil Corporation (NOC), it has planned to knock doors of commercial banks for loan.
The state oil monopoly is holding discussion with different commercial banks for the loan to ease the supply of petroleum products at festival season, acting managing director Bachchu Kumar Kafle said, adding that some commercial banks have given green signal for the loan. He, however, did not reveal the names of the banks that the corporation is approaching for the loan. The corporation is compelled to ask for loan to keep the fuel supply smooth during festival season, according to him.
The state oil monopoly needs Rs 500 million immediately to maintain the demand and supply of petroleum products for next two months during Dashain and Tihar. The corporation is still optimist that the Ministry of Finance will release loan, he said, adding that the supply will be hurt in the festive season, if NOC will not get loan on time.
However, some officials at the Nepal Oil Corporation are not optimist that it will get loan from private commercial bank easily. “The corporation should offer convincing collateral to the commercial banks,” the source said, adding that the state oil monopoly is not in the condition to show reliable collateral since it is already reeling under accumulative loss.
On the other hand, Ministry of Commerce and Supplies is also committed to help NOC ask loans with the commercial banks. The ministry will continue fuel supply at any cost during festival season, spokesperson Ganesh Prasad Dhakal said, adding that the state oil monopoly has initiated dialogue for loan with commercial bank after getting a go-ahead from the ministry.
Earlier, the Ministry of Finance on August 22 had informed Nepal Oil Corporation that it could not lend it.
Meanwhile, Nepal Oil Corporation will incur a total of Rs 506 million loss every month, according to a new price list of Indian Oil Corporation received on September 2. The state oil monopoly incurs Rs 7.14 loss on a litre of diesel and Rs 297.97 loss on a cylinder of cooking gas. However, it gets profit of Rs 2.70 on a litre of petrol, Rs 1.50 on a litre of kerosene and Rs 21.90 on a litre of ATF.
Demand
The state oil monopoly has projected the consumption of 16,000 kl petrol, 55,000 kl diesel, 4,000 kl kerosene, 2000 kl ATF (domestic), 6,000 kl ATF (international) and 1,100,000 cylinder cooking gas every month in the domestic market.
Source: THT
