NOC new business plan on hold

KATHMANDU, NOV 01: 

Various government agencies including the Department of Roads, Department of Irrigation, and Department of Urban Development and Building Construction, have not responded to the proposal sent by Nepal Oil Corporation (NOC) regarding the supply of bitumen. 

The corporation had, some six months back, sent letters to those agencies asking them to inform NOC about the consumption pattern and tentative consumption amount of bitumen and other products.

“They are potential buyers of bitumen that NOC is planning to supply to,” said spokesperson at the corporation Mukunda Prasad Dhungel, adding that NOC will write to them once again since it is trying to diversify its business by adding the trade of lube oil, bitumen and other petro products.

Business diversification could help lower NOC’s losses since it can utilise the profit earned from those products to reduce the loss on other products.

Indian Oil Corporation (IOC), sole supplier of petroleum products to NOC, has asked NOC to fix consumption quantity as the price will vary depending on consumption volume, Dhungel added. “But NOC has been failing to send the tentative consumption quantity to IOC because there has been no response from the agencies so far.” NOC will hold meetings with them to get a clear picture about the purchase of bitumen.

Source: THT