Kathmandu, June 29
The government has approved the Nepal Oil Corporation (NOC)’s request for borrowing Rs 3 billion in loans by putting up its central office building as collateral.
The Ministry of Finance has approved the troubled public utility’s request to borrow the loan from the Rastriya Banijya Bank so that it could pay the outstanding amount to the Indian Oil Corporation.
Following the approval, the ministry has also directed the bank to accelerate the loan release process.
Meanwhile, the ministry has also decided to immediately release Rs 5 billion to the NOC that is owed.
Meanwhile, Commerce and Supplies Minister Dilendra Prasad Badu has asked the Finance Ministry to reduce the taxes imposed on petroleum products further so that the corporation’s loss amount would also decrease.
As of mid-June, the corporation is in a loss of Rs 49.5 billion whereas it owes Rs 22 billion to the IOC.