Koirala instructs finance ministry to pay IOC bill

Kathmandu, Dec 13(UNI) Nepalese Prime Minister Girija Prasad Koirala has directed the countries Finance Ministry to make arrangement for paying the dues of the Nepal Oil Corporation (NOC) to the Indian Oil Corporation (IOC).

NOC has to pay Rs. 9.88 billion as dues to IOC.

The prime minister recently directed the Ministries of Finance, Industry, Commerce and Supplies to smoothen the petroleum supply by paying the loans through any process whatsoever is appropriate, state run The Rising Nepal quoted Minister for industry , Commerce and Supplies Shyam Sundar Gupta, as saying.

Mr Gupta said the prime minister called the two ministers and directed them, to pay the loans''.

Finance Ministry (revenue) Secretary Rameswor Khanal said there was no alternative to raising internal loans to pay the loan and that they will discuss it with the Nepal Rastra Bank (NRB).

He said Nepal is the country raising least taxes on petroleum in the world and there is no possibility of petroleum import other than from India.

Minister Gupta said monitoring system of the corporation is bad and people have lost faith in it and added that he wanted to make reforms in the corporation.

While petroleum products are brought from India at expensive prices, it should not be sold in Nepal at cheaper prices, said the minister.

UNI