Thursday, September 26, 2013

Government to extend credit line of Rs 2 billion to NOC

The government today decided to provide technically-bankrupt state oil monopoly Rs 2 billion.
“The Cabinet approved the financial assistance – a loan of Rs 2 billion – to the ailing state-owned company.
The amount – Rs 1 billion is being extended by the Employees Provident Fund (EPF) and remaining Rs 1 billion is being provided by the Citizen Investment Trust (CIT) — both the state-owned entities.
Nepal Oil Corporation (NOC) – that has been asking the government to provide it with loan of Rs 2 billion for the smooth supply for the festival season – will receive the amount in a week. It has not been able to pay its credit to the Indian Oil Corporation, the sole supplier.
With the added loan, NOC’s total outstanding credit stands at around Rs 30 billion, of which Rs 12.64 billion was of the government.
Since long the has been a net borrower and the government has been pumping the cash to make it running, though the staffers received bonus and even were arrested by the anti-graft body.
Due to its un-commercial operation, the NOC has always been in financial trouble.

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