NOC pays Rs 100m per month interest
KATHMANDU:
Nepal Oil Corporation (NOC) has been paying Rs 100 million as interest for its outstanding debt, according to NOC acting managing director Suresh Kumar Agrawal.
Speaking at a programme organised by Nepal Petroleum Transporters’ Federation here in the capital today, he informed that the corporation had borrowed around Rs 17.5 billion from different government entities and banks.
The state oil monopoly has been charging consumers Re 0.97 on a litre of petrol, Re 0.81 on a litre of diesel, Re 0.70 on a litre of kerosene, Re 0.74 on a litre of Aviation Turbine Fuel (domestic), Re 0.63 on a litre of ATF (international) and Rs 14.18 on a cylinder of cooking gas to pay interest of its outstanding debt.
To give relief to highly indebted NOC, Ministry of Commerce and Supplies had planned to change the current capital structure and turn its government loan into shares, though the Finance Ministry is not very much enthusiastic of the idea.
According to the Austerity Regulation brought by the Finance Ministry this week, the government is not going to lend or grant subsidy out of the budget programme. “The government is not going to invest or lend any public entity out of the budget,” the regulation read.
In the programme, president of Nepal petroleum Transporters’ Federation Khageshwar Bohora said that the outflow of petroleum product to India has increased due to low price in Nepal.
The federation estimated that around 25 per cent fuel has out-flowed to India since Nepal failed to adjust price according to the Indian market. “The government should adjust the price in line with the bordering districts to stop out flow to India,” Bohora said, demanding to ease the petroleum product import procedure.
Currently, the tankers that have been importing fuel from Indian Oil Corporation are paying Rs 850 million extra vehicle tax in India and Rs 200 million permission charge to the Indian Embassy, he said, suggesting the Nepal government to hold discussion with India to scrap such unwarranted tax.
Secretary at the Ministry of Commerce and Supplies Purushottam Ojha once again charged the transport entrepreneurs for promoting syndicate and cartel. “The federation should understand the sensitivity of petroleum business,” he lamented, requesting them not to take to street to fulfil their demands.
IOC-NOC contract renewal
Ministry of Commerce and Supplies has started homwork for contract renewal with sole supplier Indian Oil Corporation. The two entities had reached into a five-year contract in 2007. The duty drawback and other taxes have been main dispute between them in the recent days, according to minister for Commerce and Supplies Lekh Raj Bhatta. The High Level Committee led by lawmaker Bhim Acharya had also suggested the ministry to amend law. The contract will remain effective until April 1, 2012. The ministry is committed to amend the law according to the international norms.
Source: THT
Nepal Oil Corporation (NOC) has been paying Rs 100 million as interest for its outstanding debt, according to NOC acting managing director Suresh Kumar Agrawal.
Speaking at a programme organised by Nepal Petroleum Transporters’ Federation here in the capital today, he informed that the corporation had borrowed around Rs 17.5 billion from different government entities and banks.
The state oil monopoly has been charging consumers Re 0.97 on a litre of petrol, Re 0.81 on a litre of diesel, Re 0.70 on a litre of kerosene, Re 0.74 on a litre of Aviation Turbine Fuel (domestic), Re 0.63 on a litre of ATF (international) and Rs 14.18 on a cylinder of cooking gas to pay interest of its outstanding debt.
To give relief to highly indebted NOC, Ministry of Commerce and Supplies had planned to change the current capital structure and turn its government loan into shares, though the Finance Ministry is not very much enthusiastic of the idea.
According to the Austerity Regulation brought by the Finance Ministry this week, the government is not going to lend or grant subsidy out of the budget programme. “The government is not going to invest or lend any public entity out of the budget,” the regulation read.
In the programme, president of Nepal petroleum Transporters’ Federation Khageshwar Bohora said that the outflow of petroleum product to India has increased due to low price in Nepal.
The federation estimated that around 25 per cent fuel has out-flowed to India since Nepal failed to adjust price according to the Indian market. “The government should adjust the price in line with the bordering districts to stop out flow to India,” Bohora said, demanding to ease the petroleum product import procedure.
Currently, the tankers that have been importing fuel from Indian Oil Corporation are paying Rs 850 million extra vehicle tax in India and Rs 200 million permission charge to the Indian Embassy, he said, suggesting the Nepal government to hold discussion with India to scrap such unwarranted tax.
Secretary at the Ministry of Commerce and Supplies Purushottam Ojha once again charged the transport entrepreneurs for promoting syndicate and cartel. “The federation should understand the sensitivity of petroleum business,” he lamented, requesting them not to take to street to fulfil their demands.
IOC-NOC contract renewal
Ministry of Commerce and Supplies has started homwork for contract renewal with sole supplier Indian Oil Corporation. The two entities had reached into a five-year contract in 2007. The duty drawback and other taxes have been main dispute between them in the recent days, according to minister for Commerce and Supplies Lekh Raj Bhatta. The High Level Committee led by lawmaker Bhim Acharya had also suggested the ministry to amend law. The contract will remain effective until April 1, 2012. The ministry is committed to amend the law according to the international norms.
Source: THT
