New Nepal Oil Corporation boss vows to initiate reforms

Published On: January 11, 2019 08:27 AM NPT

Be efficient or get ready to compete with private sector: Supplies secy tells NOC

KATHMANDU, Jan 11: The newly-appointed managing director of Nepal Oil Corporation (NOC), Surendra Kumar Paudel, has vowed to initiate reform actions in the state-owned enterprise.

Speaking at the 48th anniversary of the corporation, Bhandari said that one of his priorities during his tenure will be to curb anomalies in the state oil monopoly and steer the company toward the path of reform.

“Under my leadership, there will be a zero tolerance to the anomalies,” said Paudel. “There are a lot of expectations for the NOC’s reform. I have to stand strong for taking reform initiatives here,” he added. He, however, did not give details about the areas and possible actions for reform in the ailing state-owned trading enterprise that imports, stores and distributes petroleum products in the country.

The statement from the NOC chief comes at a time when the financial health of the company has remained stagnant or worsened despite slump of prices of petroleum products in the international market.

The NOC faces criticisms not only due to the failure to improve its financial health, but also due to recurring disruption in the supply of petroleum products.

According to Paudel, the NOC has contributed over Rs 55 billion as revenue in the state coffers.
“We have very big responsibility not only because we pay a huge amount of revenue to the government, because our business has direct relation to the public,” he added.

Meanwhile, Secretary at the Ministry of Industry, Commerce and Supplies Chandra Kumar Ghimire has warned of opening up the petroleum products supply business to the private sector if the NOC failed to improve its efficiency.

“The NOC is one of the key players in our economy. It needs to improve its efficiency. If the corporation fails to improve the efficiency and its financial health, the government will be compelled to consider opening up the market to the private sector,” he added.

Also speaking on the ceremony, Minister for Industry, Commerce and Supplies Matrika Yadav has urged the management of the NOC to curb anomalies in the corporation.

“There are so many anomalies. Many are taking benefits at the expense of consumers and the government. This is not going to be tolerated anymore,” said Yadav.

He also instructed petroleum transporters and suppliers to not promote syndication in the market.