According to NOC Managing Director Digambhar Jha, IOC agreed to ease supplies after he had talks with top IOC officials in Mumbai.[break]
“We informed them of the cause of delay in settling dues -- which has largely to do with deferral of the cabinet meetings amid new developments in the peace process -- and promised to settle all dues by the end of January,” Jha told Republica.
IOC, the sole supplier of fuel for Nepal, had cut the supply of fuel by as much as 30 percent from Tuesday, demanding NOC to clear outstanding dues first.
Records show, NOC owes Rs 640 million to IOC. Officials said the dues had accumulated largely due to ballooning loss and also because NOC imported additional quantity to replenish its stock.
“We received well over 2,200 KL of fuel, including petrol, diesel and kerosene from Raxaul on Friday and expect the IOC to maintain regular supply till the end of this month,” said Jha.
He expressed hope the cabinet would soon endorse the proposal that Ministry of Commerce and Supplies (MoCS) forwarded to arrange loans for NOC to finance imports. MoCS has sought loan worth Rs 1.30 billion, which is equivalent to two months´ loss incurred by NOC at present.
The loan will help NOC take care of its financial problem for the time being. However, NOC official stress that the corporation will not find a sustainable solution until the government allows it to adjust prices in line with the international prices.
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