NOC to receive Rs 300 million duty draw back from IOC
KATHMANDU, June 18:
The state-oil monopoly said that its supplier Indian Oil Corporation has to pay around Rs 300 million duty draw back.
Nepal has to receive remaining Rs 80 million duty drawback from 2007 April to 2008 May, Nepal Oil Corporation MD Digambar Jha told The Himalayan Times.
“NOC has not received duty drawback since April 2010,” he informed, adding that the process has been delayed because Indian government has delayed to fix the brand rate of petroleum products exported to Nepal.
However, the High Level Committee on NOC reform had earlier said that the IOC has Rs 14 billion due as a duty drawback. “The agreement between Nepal Oil Corporation and Indian Oil Corporation in 2007 stated that ‘as there would be delay in fixing the brand rate (duty drawback rate) by the central customs and excise department, IOC shall use the latest brand rate available to them on provisional basis’,” Jha informed.
Meanwhile, Nepal Oil Corporation is all set to introduce bidding system for transportation of petroleum products from IOC depot to Nepal, according to the recommendation of high levelcommittee.
“The corporation has requested Institute of Engineering to carry out study on implementation of scientific fare to import petroleum products,” NOC spokesperson Mukunda Prasad Dhungel said, adding that NOC is committed to implement bidding system in the transportation.
The state-oil monopoly has earmarked Rs 1.85 fare on a litre of petrol, diesel, kerosene and Aviation Turbine Fuel (ATF) from Raxaul to Kathmandu. Similarly, transportation cost of cooking gas is fixed at Rs 105 per metric tonne.
“However, the implementation of bidding system is not so easy,” according to Nepal Petroleum Transporters’ Federation. “NOC has inked a five-year contract with transporters,” secretary general of Nepal Petroleum Transporters’ Federation Bishwa Aryal said, adding that the corporation cannot terminate the contract and implement new system until the contract term ends.
The corporation is thinking of implementing the system in a phase-wise manner. “It is appropriate to implement the bidding system in a phase-wise manner since the contract of around 1,200 tankers will come to an end at different times, the corporation said.
The High Level Committee charging the NOC management’s said that the current fare is baseless. “The NOC top brass are involved in corruption in fixing transportation fare,” the report said, adding that it has not abided by Public Procurement Act while selecting transporter.
“Transport entrepreneurs time and again put pressure on the government to hike transport fare,” the report said, blaming politicians and NOC management of protecting them. “However, Dhungel claimed that the NOC will implement the new rafe rate after the Institute of Engineering submits a detailed report. “It will help reduce transportation cost significantly.”
Meanwhile, a committee led by NOC deputy MD Bachchu Kumar Kafle has submitted its detailed plan to reform NOC.
Source: THT
The state-oil monopoly said that its supplier Indian Oil Corporation has to pay around Rs 300 million duty draw back.
Nepal has to receive remaining Rs 80 million duty drawback from 2007 April to 2008 May, Nepal Oil Corporation MD Digambar Jha told The Himalayan Times.
“NOC has not received duty drawback since April 2010,” he informed, adding that the process has been delayed because Indian government has delayed to fix the brand rate of petroleum products exported to Nepal.
However, the High Level Committee on NOC reform had earlier said that the IOC has Rs 14 billion due as a duty drawback. “The agreement between Nepal Oil Corporation and Indian Oil Corporation in 2007 stated that ‘as there would be delay in fixing the brand rate (duty drawback rate) by the central customs and excise department, IOC shall use the latest brand rate available to them on provisional basis’,” Jha informed.
Meanwhile, Nepal Oil Corporation is all set to introduce bidding system for transportation of petroleum products from IOC depot to Nepal, according to the recommendation of high levelcommittee.
“The corporation has requested Institute of Engineering to carry out study on implementation of scientific fare to import petroleum products,” NOC spokesperson Mukunda Prasad Dhungel said, adding that NOC is committed to implement bidding system in the transportation.
The state-oil monopoly has earmarked Rs 1.85 fare on a litre of petrol, diesel, kerosene and Aviation Turbine Fuel (ATF) from Raxaul to Kathmandu. Similarly, transportation cost of cooking gas is fixed at Rs 105 per metric tonne.
“However, the implementation of bidding system is not so easy,” according to Nepal Petroleum Transporters’ Federation. “NOC has inked a five-year contract with transporters,” secretary general of Nepal Petroleum Transporters’ Federation Bishwa Aryal said, adding that the corporation cannot terminate the contract and implement new system until the contract term ends.
The corporation is thinking of implementing the system in a phase-wise manner. “It is appropriate to implement the bidding system in a phase-wise manner since the contract of around 1,200 tankers will come to an end at different times, the corporation said.
The High Level Committee charging the NOC management’s said that the current fare is baseless. “The NOC top brass are involved in corruption in fixing transportation fare,” the report said, adding that it has not abided by Public Procurement Act while selecting transporter.
“Transport entrepreneurs time and again put pressure on the government to hike transport fare,” the report said, blaming politicians and NOC management of protecting them. “However, Dhungel claimed that the NOC will implement the new rafe rate after the Institute of Engineering submits a detailed report. “It will help reduce transportation cost significantly.”
Meanwhile, a committee led by NOC deputy MD Bachchu Kumar Kafle has submitted its detailed plan to reform NOC.
Source: THT
