NOC becomes debt-free entity
Kathmandu, July 10
Nepal Oil Corporation (NOC), the state-owned petroleum supply company, has cleared all its dues today.
“We do not have any debt from today,” said Sita Ram Pokharel, finance division head of NOC, after repaying the last instalment of loan worth Rs 800 million and interest worth Rs 610 million to the government on Sunday.
Capitalising on the rampant fall in crude oil price in the global market, NOC was able to generate funds to clear its loan burden worth Rs 36 billion in the last two years.
In the beginning of this fiscal, NOC owed Rs 23.88 billion to the government and different financial institutions.
The state-owned petroleum company was able to generate profit to the tune of Rs 17 billion last fiscal year by capitalising on the rampant fall in oil prices in the international market. In this fiscal, NOC’s profit is expected to hover around Rs 2.71 billion, according to the annual status of public enterprises tabled at the parliament.
NOC has informed it will soon remove all the additional charges passed on to consumers with the purpose to generate funds for interest and loan repayment.