Money
NOC allots Rs117b for new fuel storage plants
Nepal Oil Corporation (NOC) has earmarked Rs117 billion to install new fuel storage plants.Nepal Oil Corporation (NOC) has earmarked Rs117 billion to install new fuel storage plants.
In a recent report, NOC has estimated the need for Rs10 billion for land acquisition; Rs50 billion for constructing infrastructure—Rs20 billion for petrol and diesel, and Rs30 billion LPG storage plants; and Rs57 billion for the purchase of fuel stock for three months.
According to the report, NOC will be able to recover the cost in the next 8-10 years, provided it secures 10-15 percent profit growth over the period.
“The government is considering supporting NOC by lending Rs30-32 billion, or building the storage plants under public-private partnership model,” said Supplies Minister Deepak Bohara at a programme here on Tuesday.
He said NOC has to focus on providing effective service rather than just profit maximisation. “It has to focus on diversifying its business and enhance its management ability to ensure quality service to consumers,” he said.
NOC Managing Director Gopal Bahadur Khadka said NOC has allocated almost all the profits it earned in the past few months to build infrastructure targeted at easing fuel supply.
After implementing the automated pricing system, NOC has earned Rs7 billion net profit in the last few months after paying off its debt of over Rs36 billion.