Government to provide loan worth Rs 2 billion to Nepal Oil Corporation

The government has decided to provide a loan worth Rs 2 billion to the state-owned Nepal Oil Corporation (NOC). But NOC officials have stated that the funds will not be able to provide smooth supply of fuel products during the Dashain festival. According to government officials, the Citizen Investment Trust (CIT) and Employees Provident Fund (EPF) will provide Rs 1 billion each to NOC against the government’s guarantee.


NOC had earlier sought Rs 4 billion finance fuel products. So far, CIT and EPF have already provided loans worth Rs 13 billion to NOC.  The new loan will only be enough to finance fuel products until this month. NOC has not cleared Rs 1.5 billion in dues to the Indian Oil Corporation.

NOC currently faces a loss of Rs 1.6 billion per month. NOC’s outstanding debts stand at Rs 28.5 billion. NOC has been lobbying for the fuel prices to be in line with the international market prices to cut down its losses.

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