Suresh Kumar Agrawal, acting managing director of NOC, said the corporation on the day completed all required formalities with the Citizens Investment Trust (CIT) that has paved the way for the debt-ridden state-owned fuel monopolist to receive another Rs 1 billion for financing imports.[break]
“We hope to receive the amount soon,” said Agrawal.
Likewise, he disclosed that the Large Taxpayers´ Office of Ministry of Finance too has promised to release VAT refund within a month.
Once these funds flow in, NOC officials said they would instantly make partial payment of outstanding dues of the Indian supplier, and also place order for quantity that would enable it to maintain normal supplies.
Currently, Indian Oil Corporation (IOC) has more than halved the volume of petroleum export to Nepal, pressing the NOC either to settle the outstanding dues that stand at around Rs 3.20 billion or release payment that matches with its demand.
Following the cut in supplies, NOC had approached the senior IOC officials, requesting them to resume normal suppliers referring to the political uncertainties and fast approaching monsoon, when corporation faces difficulties in transportation.
“However, they asked us to forward them a clear payment plan on settling dues. How can we prepare payment schedule when we ourselves are not sure from where and how much fund we will receive in day days?” wondered Agrawal.
Though NOC officials admitted that fresh commitments for funds would help the corporation greatly, they vented ire at the government for not taking clear policy stance on pricing, leaving them as well as the country into embarrassment now and again.
“Everyone knows Nepal can neither afford nor sustain oil loss. Now if the government feels it cannot open prices, it must completely cover the loss we suffer due to the state´s faulty policy. Sadly, however, the government is doing none,” said Agrawal.
The government´s continued apathy to deregulation of oil prices has turned NOC technically bankrupt, leaving it reliant on government-arranged funds to finance oil import.
“Our cumulative loss has jumped to Rs 29 billion and total outstanding debt to the government and different financial institutions presently stands at Rs 23.61 billion,” said Agrawal. “Our loss over the first nine months of this fiscal year alone is calculated at around Rs 9 billion.”
As NOC needs to service Rs 153.8 million in interest to the government and banks every month, it makes consumers to pay additional Rs 1.48 per liter on all petroleum products it deals on to recoup the money.
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