"Nepal hit hard by India oil cuts"

Some people waited hours to get petrol.

Parts of Nepal are experiencing fuel shortages after a state-run Indian energy company cut oil supplies to the country by 40% last week.

There have been scenes of panic as car drivers queue for petrol in Kathmandu.

The Indian Oil Corporation (IOC) supplies all of land-locked Nepal's oil. It reduced supplies because of unpaid debts.

The state-run Nepal Oil Corporation (NOC) says it cannot pay the $90m it owes the IOC.

Many petrol stations in the kingdom are now reported to have run out of fuel.

A spokesman for NOC said it would soon run out of reserves.

Queues

The BBC's Surendra Phuyal in Kathmandu says the NOC has stopped supplies to privately-owned petrol stations but it is still ensuring supplies to a number of state-run outlets.

Hundreds of vehicles and motorcycles waited in long lines for their turn to refill their tanks at some half-a-dozen state-run stations.

Vehicles line up at Kathmandu fuel station 10 May 2007
The NOC hopes the problem will be resolved soon

"I waited for three hours this morning in a long line to refill my vehicle," Chakra Lama, a taxi driver, told the BBC.

"The government should ensure that there's enough and smooth supply of the petroleum products."

Sharad Bhandari, the secretary of Nepal Petroleum Dealers Association, blamed the government for the crisis.

"The government should do whatever it needs to do - start a dialogue with India at the highest political level, or just hike the petrol prices here to make profits and clear all the dues," he told the BBC.

'Crazy'

Passengers complained that taxis have already started increasing fares because of the shortages.

"This is crazy, I paid 300 rupees ($4.6) for a short ride of about five kilometres this morning," Smriti, a woman working in central Kathmandu complained. "What's the government doing?"

Ichchha Vikram Thapa, the spokesperson for the NOC, urged the government to raise petrol prices. "Since the new multi-party government has been in power it has shied away from readjusting petroleum prices, fearing a backlash from consumers."

Mr Thapa said he hoped that the situation would return to normal soon.

"We will be clearing some of their dues soon and we are also expecting the government to start dialogue at the highest level to sort out the issue."



NEPAL MUST NOT DEPEND ON INDIA.

WE SHOULD OPEN CHINA-TIBET BORDER FOR BUSINESS AND SUPPLY.


http://news.bbc.co.uk/2/hi/asia-pacific/4345494.stm

How far How close China-Tibet Rail way already has been started?

http://www.chinapage.com/road/qinghai-tibet-railroad/qinghai-tibet-railroad.html

How about Nepal-China-Tibet cable car business goods tranport???

cable car travel in Nepal:

http://www.plannepal.com/cable_car/index.php

It is not India's fault that Nepal can't pay for oil.

I DON'T BLAME INDIA FOR THIS. HOW CAN THEY SUPPLY OIL WHEN THEY KNOW THAT NEPAL HAS TO PAY $90M. ITS A LARGE SUM MAN. NOC MUST HAVE DONE THEIR OWN PET PUJA FROM THE OIL SALE. OTHERWISE WHY CAN'T THEY PAY IT OTHERWISE.

NOC ko Tauke le Ghush nakhayeko bahye yasto hunna thyo. NOC lai Randi banaune Randa haru ko tauko katera tyo blood collect garera gadi kudauna parchha

Before yo guys start pointing fingers. WE ARE TO BLAME FOR THIS. WHERE THE FUG WILL THE MONEY COME FROM ? from the window ? WHERE IS NEPAL"S SOURCE OF INCOME ? The ECONOMICAL INFRASTRUCTURE IS IN TOTAL SHAMBLES. HOW THE FUG YOU GOING TO PAY PAY FOR ANYTHING IF YOU DO NOT HAVE ANY INCOME ?

PEOPLE WHO WERE IN POWER HAVE RAPED NEPAL'S TREASURY OVER AND OVER AGAIN (CONGRESS, AND KING). AND THE FUGGING MAOS HAVE TOTALLY DISRUPTED NEPAL'S CASH COW THE TOURISM INDUSTRY. SO YOU CANNOT BLAME INDIA FOR THIS ONE.

OIL KINNEY HO BHANEY TA PAISA PANI HUNUPARYO NI !!

Safe shelter, effectual military strategy, uninterrupted arms supplies prolonged insurgency in Nepal. Everybody can point out now how that happened, which element / nation made that possible, who was behind the war. It will not be counterfeit if someone would say Nepal Army had to fight a proxy war against well-established military power, and it not only could sustain but also succeed. However, very similar to Sri Lanka or another insurgent hit African nation, in Nepal also, the economy as well as law & order crumbled completely due to guided insurgency. Now the country is in shambles. You just have to manage some money to get slc question. Any politician amass wealth overnight and still wins the case in court…RNAC no longer operates international flight. In fact its on the verge of the closure. Nepal Oil Corporation just happened to other example...

The state owned monopoly, Nepal Oil Corporation (NOC) reaches out to commercial banks for 2 billion rupees in short term loan:

According to analysts Nepal is seeing a major inflation in within the next month,
thanks to the revised diesel prices. The state owned monopoly, Nepal
Oil Corporation (NOC) raised its diesel price from Rs.46 per liter to
Rs.55 per liter, 18 February. The current price is still less than the
international market price and less than what NOC pays to buy it from
India. As a result NOC has been bearing losses of over 570 million
rupees a month.

As a result, NOC released a notice for 2 billion rupees in short term loans from
commercial banks in Nepal. According to a notice published by NOC on
the state owned newspaper Gorkhapatra, NOC would pay half the amount (1
billion) within ninety days and the other half ninety days after the
first payment.

This is the second time NOC has addressed the commercial banks, the first appeal did not see any active response. We are yet to see if NOC actually receives the
amount from commercial banks.

While it might just be a way to get money and pay India to make sure there is normal flow of oil from India, it might also be a planned strategy to privatize NOC. The
government faced a strong criticism on its plans to privatize NOC.


Question is - Where money goes to? Who gonna pay loan? Where OIL export and Sell income went or goes to?

Nepal Oil Corporation heavily indebted
font size ZoomIn ZoomOut

Nepal Oil Corporation (NOC) owes over 150 million U.S. dollars to the banking sector and Indian Oil Corporation (IOC), reported website ekantipur.com Friday.

NOC's financial status has reached an alarming condition due to its growing losses in the last five years, said a report released by the Ministry of Industry, Commerce and Supplies (MoICS) Thursday.

The corporation incurred losses totaling more than 180 million dollars over the last five years, as it sold petroleum products at lower prices than their purchasing prices, said the report.

This is the first time that the ministry has issued a report on NOC's financial status.

Of the total debt, NOC needs to pay more than 92 million dollars to the IOC and nearly 65 million dollars to local financial institutions.

"The NOC has to pay an annual interest of nearly 13 million U.S. dollars for this debt," said Purushottam Ojha, acting secretary at the ministry. The corporation has authorized capital of 7.5 million dollars and paid-up capital of 1.45 million dollars.

According to the report, NOC is incurring monthly losses of nearly 3 million dollars due to lower selling prices of petroleum products. The corporation sells LP gas at a price lower by 3.70 dollars per cylinder. Likewise, it has losses of 75 dollars in every kilo-liter of petrol, 60 dollars in diesel, and 10.5 dollars in kerosene. However, it earns 278 dollars profit in sale of every kilo-liter of aviation fuel.

The report also showed that NOC maintains very low stock of petroleum products, heightening risks of shortage once supply is disrupted. The current stock cannot last for more than three days of demand in the capital. The storage of petrol is sufficient only for a day in Pokhara, the major tourist city some 140 km from Kathmandu.

"If fuel supply is halted for a day, there would be severe repercussions," said Bishwo Nath Goyal, managing director of NOC.

The report said absence of necessary infrastructure like pipeline from Raxaul to Amlekhgunj, the petroleum depot situated at the Indo-Nepal border some 90 km south of Kathmandu, has greatly affected supply of petroleum products.

NOC and IOC have signed an agreement to construct a pipeline, but the project was not initiated due to financial crunch.

Source: Xinhua

http://english.people.com.cn/200705/04/eng20070504_372022.html

Where Oil Corporation Profit goes to?

Who is taking briber and doing blackmarketing and commission which make bankurpt to Nepal Oil Corporation?

Where the money went ? Check the prominent Politicians foreign bank accounts. I would say AUDIT every official's bank account in NOC. Along with all the elected officials from past 5-10yrs. ITS A KNOWN FACT THAT EVERYONE IN NEPAL IS CORRUPTED SO TO ASK WHERE THE MONEY WENT IS OXYMORON. NEPAL IS GETTING FUGGED BOTH WAYS. MOTHAFUGGING POLITICIANS ARE POCKETING EVERYTHING THEY CAN GET THEIR HANDS ON. AND THE MAOISTS ARE STILL ROBING BANKS AND EXTORTING MONEY. With all this Nepal bandh .... who is it hurting ? NEPAL. BUT THE NEPALI BHEDAS DON'T REALISE THIS. THEY ARE ALL BLINDED BY THEIR POLITICAL IDEALOGIES AND PARTY AFFILIATIONS. JUST TAKE A GOOD LOOK HERE IN SAJHA......