Kathmandu, August 12 :

Talks between officials of Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) have concluded here without making any substantial progress.

The five-member IOC team, led by its commercial general manager M Nene, held talks with top NOC officials, industry minister and the finance minister on terms of payment for dues owed to IOC by NOC.

The IOC team today left for New Delhi.

The IOC team is understood to have asked NOC to pay the outstanding dues at the earliest, stating that it cannot supply on credit and bear such huge dues for such a long time.

When asked about NOC’s request to IOC not to charge interest on the due amount, Umesh Prasad Dahal, deputy general manager at NOC, said, “IOC officials asked us to clear

off the principal due amount first. They expressed their constraints as IOC has also taken loans from various Indian banks and it has to be accountable to shareholders.”

A few weeks ago, reports had suggested that IOC would seek 10.25 per cent interest on outstanding dues with NOC, since IOC has to pay interest on its bank loans.

Fuel shortage :

KATHMANDU: Residents of Kathmandu felt the short supply of petroleum products for the second day today.

According to Shiva Prasad Ghimire, president of Nepal Petroleum Dealers’ Association (NPDA), more than 50 per cent petrol pumps in the valley went dry, as they didn’t get enough petroleum products from the NOC depot at Thankot.

“NOC has cut down daily supply by 20 to 25 per cent, whereas the market demand has gone up by 15-20 per cent. Fears over further price hike and short supply has ramped up demand,” he said.

Umesh Dahal, DGM at NOC, said that the short supply is temporary, as there were

two days of public holiday last week. He claimed supply would become normal by Sunday afternoon. — HNS