After the original contract between the two entities for supply of petroleum products was shown to be unlawful and various parliamentary committees began to probe the entire process, Birat Petroleum had withdrawn from the contract and formally cancelled it.
However, NOC Managing Director Khadka organized a press meet on Monday to inform media that Birat Petroleum is the only firm capable of supplying petrol and diesel to Nepal and the present fuel crisis would not be settled unless Birat is given the contract.
"Birat Petroleum, among the firms that showed interest in supplying petroleum products to Nepal, is the only one that is capable of delivering petrol and diesel to Nepal," Khadka said, adding, "The outcome of the current fuel crisis depends heavily on whether Birat is given the contract or not."
Under the direction of Khadka, NOC had unlawfully issued Rs 200 million to Birat to open a letter of credit (LC) for importing petrol and diesel. Moreover, the agreement with Birat Petroleum was signed in such a way that NOC had to purchase diesel and petrol at the much higher rates of Rs 187 and Rs 199 per liter respectively. This process had raised the concern of the parliamentary committees which then begun their investigations.
"Forget about process and commission issues because people are in need of diesel and petrol at any cost," Khadka said, adding, "Primary concern of NOC is to settle the ongoing crisis in petroleum products despite any dodginess in the process."
NOC Director Mukunda Ghimire on Sunday had said that NOC would withdraw its contract with Birat and take back the amount issued to it. However, the very next day Khadka said that the fuel crisis would worsen if Birat was not given the contract. "We had no option but to issue Rs 200 million to Birat Petroleum, as the private sector cannot invest large amounts for importing petroleum products," he added.
Khadka, who has been consistently defending Birat Petroleum even said, "Commissions to some level are often natural when the country is in such huge crisis. The issue of commissions should not be such a big deal."
NOC officials themselves have been saying that the contract with Birat is unlawful and the private firm will make a net profit of more than Rs 4 million without any significant investment.
Meanwhile, Khadka urged the public not to queue up in front of fuel stations as NOC is unlikely to supply fuel immediately. "Fuel supply has further deteriorated and we have been running out of stock," he added.
The contract originally signed between NOC and Birat stipulated that Birat would bring the petroleum products into Nepal in spite of the ongoing Indian blockade. But it is not disclosed just how Birat will do that.
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