SANGAM PRASAIN
KATHMANDU, FEB 01 -
The parliamentary Public Accounts Committee (PAC) formed a seven-member subcommittee on Monday to prepare a report on Nepal Oil Corporation’s price adjustment, fuel transportation system, financial audit and capability to maintain adequate fuel stocks at its depots should an emergency occur.
Constituent Assembly member Dhan Raj Gurung is coordinator of the subcommittee which plans to prepare the report within one month. PAC has put the state-owned oil monopoly under its scanner following widespread criticism from consumers, consumer rights activists and political parties over its irregularities and reluctance to conduct organizational reforms.
Lawmakers had been urging NOC to implement a scientific price adjustment policy to match international market prices. They have also asked NOC to put up public signs showing the price of fuel in Kathmandu and other districts for greater transparency.
Another major issue concerning NOC is the low capacity of its depots. NOC has been told to expand the capacity of its depots to stock petroleum for at least four months. “NOC needs to develop strategic depots to stock fuel enough for at least three-four months in case of political turmoil, strikes and other natural calamities,” said lawmaker Prakash Chandra Lohani.
Transportation and NOC’s annual audit report are other issues pointed out by the lawmakers. PAC had directed NOC to submit by January 24 its financial details for the last three years and the quantity of petroleum products imported.
The committee had summoned NOC officials and Finance Ministry officials to grill them about oil imports, NOC’s plan for organizational reforms and irregularities.
The fuel price disparity between Nepal and India is another issue. According to NOC, the recent price hike by Indian Oil Corporation (IOC) has made gasoline cheaper in Nepal.
NOC said that petrol and aviation fuel cost Rs 10 less in Nepal compared to India which could encourage smuggling. “Prices in Nepal and India should not differ by more than 10 percent,” said Lohani.
Monday, January 31, 2011
Saturday, January 29, 2011
India, China both flexible over Himalaya 2 air route
SANGAM PRASAIN
KATHMANDU, JAN 29 -
India and China have shown flexibility in allowing Nepal to use the Himalaya 2 air route that connects Kathmandu with Bagdogra, Guwahati, Silchar, Imphal and Kunming.
As per the letter of agreement (LOA) on air routes signed between China and India in September 2009 and ATS coordination procedures, Nepal has been permitted to use this airspace (excluding military bases) over India. Meanwhile, the Chinese government has been reviewing Nepal’s proposal.
“However, a bilateral memorandum of understanding on a specific airspace is yet to be signed between Nepal and India, and concurrence from Indian defence authorities is in progress,” said Ram Prasad Neupane, director general of the Civil Aviation Authority of Nepal (CAAN).
With regard to permission from the Chinese side, Nepal’s proposal is being reviewed. “Further process will begin after a government-to-government deal,” Neupane said. Apart from the ongoing development on the Himalaya 2 route, CAAN is also in the process of finalizing the Kathmandu-Lhasa B345 route up to Beijing and Shanghai in the context of signing a letter of agreement with China on ATS coordination procedures.
If the route is opened, it will be the shortest route to China and the Far East and to the Middle East and Europe from Nepal and the Indian subcontinent. The air distance from Kathmandu to Hong Kong will also be reduced.
The existing route via Bangladesh is 1,770 nautical miles while the proposed route via Imphal is 1,669 nautical miles. The distance can be further reduced by 35 nautical miles if direct routing from Kathmandu to Kunming can be done, said CAAN. According to CAAN, Nepal has proposed three air routes—Himalaya 1 (Bangkok-Kolkata-Nepalgunj-Indek in Pakistan), Himalaya 2 and Himalaya 3—at different ICAO meetings and other forums. Among them, the most beneficial route is Himalaya 2, but it is one which requires much effort by Nepal to get India and China to agree.
“We admit that there are several issues regarding defence and technical barriers in China. However, China is moving towards a liberal aviation economy, which could be positive for Nepal as well,” Neupane said. The government should deal through diplomatic channels to make it happen, he added.
The L626 route that links Kathmandu-Mahendranagar-Pantanagar-Delhi has been operational since November 2009. It took nearly seven years for the airway to be opened. The International Air Transport Association (IATA) has kept the Himalaya 2 airspace as a future requirement. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal.
CAAN expects that Cathay Pacific, Qatar Airways, Saudi Arabian Airlines, Nepal Airlines, Dragon Air, China Southern and Air Hong Kong among other international carriers will be direct beneficiaries.
“We have raised the implementation of Himalaya 2 at many international forums at different times. IATA and the International Civil Aviation Organization has appreciated the proposal and assured us their fullest cooperation in its implementation,” said Neupane. Moreover, implementation of the route will help environment protection with less carbon emission. Rising fuel costs, increasing air traffic congestion and increased emissions are growing concerns in international air transport presently, said Neupane. These routes will reduce congestion of westbound traffic flows across the Bay of Bengal.
CAAN officials said that access to international airspace would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. According to them, international air accessibility had changed the face of Southeast Asia over the period 1979-97. The proposed route could establish Nepal as an international transit point. The second international airport that the government has planned to construct in Nijgadh would be the greatest beneficiary.
For the past several years, Nepal has been focusing on promulgation of international routes across the Himalaya to establish an air corridor across a considerable part of Nepali airspace.
KATHMANDU, JAN 29 -
India and China have shown flexibility in allowing Nepal to use the Himalaya 2 air route that connects Kathmandu with Bagdogra, Guwahati, Silchar, Imphal and Kunming.
As per the letter of agreement (LOA) on air routes signed between China and India in September 2009 and ATS coordination procedures, Nepal has been permitted to use this airspace (excluding military bases) over India. Meanwhile, the Chinese government has been reviewing Nepal’s proposal.
“However, a bilateral memorandum of understanding on a specific airspace is yet to be signed between Nepal and India, and concurrence from Indian defence authorities is in progress,” said Ram Prasad Neupane, director general of the Civil Aviation Authority of Nepal (CAAN).
With regard to permission from the Chinese side, Nepal’s proposal is being reviewed. “Further process will begin after a government-to-government deal,” Neupane said. Apart from the ongoing development on the Himalaya 2 route, CAAN is also in the process of finalizing the Kathmandu-Lhasa B345 route up to Beijing and Shanghai in the context of signing a letter of agreement with China on ATS coordination procedures.
If the route is opened, it will be the shortest route to China and the Far East and to the Middle East and Europe from Nepal and the Indian subcontinent. The air distance from Kathmandu to Hong Kong will also be reduced.
The existing route via Bangladesh is 1,770 nautical miles while the proposed route via Imphal is 1,669 nautical miles. The distance can be further reduced by 35 nautical miles if direct routing from Kathmandu to Kunming can be done, said CAAN. According to CAAN, Nepal has proposed three air routes—Himalaya 1 (Bangkok-Kolkata-Nepalgunj-Indek in Pakistan), Himalaya 2 and Himalaya 3—at different ICAO meetings and other forums. Among them, the most beneficial route is Himalaya 2, but it is one which requires much effort by Nepal to get India and China to agree.
“We admit that there are several issues regarding defence and technical barriers in China. However, China is moving towards a liberal aviation economy, which could be positive for Nepal as well,” Neupane said. The government should deal through diplomatic channels to make it happen, he added.
The L626 route that links Kathmandu-Mahendranagar-Pantanagar-Delhi has been operational since November 2009. It took nearly seven years for the airway to be opened. The International Air Transport Association (IATA) has kept the Himalaya 2 airspace as a future requirement. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal.
CAAN expects that Cathay Pacific, Qatar Airways, Saudi Arabian Airlines, Nepal Airlines, Dragon Air, China Southern and Air Hong Kong among other international carriers will be direct beneficiaries.
“We have raised the implementation of Himalaya 2 at many international forums at different times. IATA and the International Civil Aviation Organization has appreciated the proposal and assured us their fullest cooperation in its implementation,” said Neupane. Moreover, implementation of the route will help environment protection with less carbon emission. Rising fuel costs, increasing air traffic congestion and increased emissions are growing concerns in international air transport presently, said Neupane. These routes will reduce congestion of westbound traffic flows across the Bay of Bengal.
CAAN officials said that access to international airspace would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. According to them, international air accessibility had changed the face of Southeast Asia over the period 1979-97. The proposed route could establish Nepal as an international transit point. The second international airport that the government has planned to construct in Nijgadh would be the greatest beneficiary.
For the past several years, Nepal has been focusing on promulgation of international routes across the Himalaya to establish an air corridor across a considerable part of Nepali airspace.
Tuesday, January 25, 2011
Air passengers again required to show ID at check-iN
SANGAM PRASAIN
KATHMANDU, JAN 25 -
Airlines and travel agencies have revived the provision making it mandatory for passengers flying on domestic flights to produce ID during check-in in a bid to stop travellers with fake identities and enforce air safety regulations.
Air travellers will henceforth need to show official identification (citizenship certificate, passport or driving license) to obtain a boarding pass and while buying an airline ticket. Students can present ID issued by their college or school.
Although the system has been in place for a number of years, carriers and travel agencies have not been implementing it because of recalcitrant travellers, said airline operators. “The ID check-in system will be implemented more strictly from now onwards,” said president of the Nepal Association of Tour and Travel Agents (NATTA) Arjun Prasad Sharma.
Airlines and travel agencies moved to enforce the requirement more strictly following the Tara Air accident on Dec. 16, 2010 that claimed the lives of 19 Bhutanese passengers travelling as Nepalis.
The Airline Operators Association of Nepal (AOAN) has also issued a public notice to inform passengers about the new rules. The AOAN has also announced that the tickets of passengers trying to travel on false ID will be cancelled.
“Domestic airlines have been lax with regard to check-in procedure. However, considering the matter of security and false ID, the AOAN has asked airlines to implement the provision strictly,” said AOAN general secretary Suman Pandey.
The Civil Aviation Authority of Nepal had also written to the AOAN to implement the ID check-in procedure more strictly after the Tara Air crash.
“Requiring travellers to produce ID when buying an air ticket and obtaining a boarding pass will create a double check-in process that will ensure passenger security,” added Sharma.
Earlier, NATTA has appealed to the government to implement legal procedures that comply with applicable check-in requirements for all passengers travelling on domestic flights
KATHMANDU, JAN 25 -
Airlines and travel agencies have revived the provision making it mandatory for passengers flying on domestic flights to produce ID during check-in in a bid to stop travellers with fake identities and enforce air safety regulations.
Air travellers will henceforth need to show official identification (citizenship certificate, passport or driving license) to obtain a boarding pass and while buying an airline ticket. Students can present ID issued by their college or school.
Although the system has been in place for a number of years, carriers and travel agencies have not been implementing it because of recalcitrant travellers, said airline operators. “The ID check-in system will be implemented more strictly from now onwards,” said president of the Nepal Association of Tour and Travel Agents (NATTA) Arjun Prasad Sharma.
Airlines and travel agencies moved to enforce the requirement more strictly following the Tara Air accident on Dec. 16, 2010 that claimed the lives of 19 Bhutanese passengers travelling as Nepalis.
The Airline Operators Association of Nepal (AOAN) has also issued a public notice to inform passengers about the new rules. The AOAN has also announced that the tickets of passengers trying to travel on false ID will be cancelled.
“Domestic airlines have been lax with regard to check-in procedure. However, considering the matter of security and false ID, the AOAN has asked airlines to implement the provision strictly,” said AOAN general secretary Suman Pandey.
The Civil Aviation Authority of Nepal had also written to the AOAN to implement the ID check-in procedure more strictly after the Tara Air crash.
“Requiring travellers to produce ID when buying an air ticket and obtaining a boarding pass will create a double check-in process that will ensure passenger security,” added Sharma.
Earlier, NATTA has appealed to the government to implement legal procedures that comply with applicable check-in requirements for all passengers travelling on domestic flights
Monday, January 24, 2011
5 domestic carriers team up to start int’l airline
All five operators will have equal equity in this new venture that is estimated to be worth US$ 150 million
SANGAM PRASAIN
KATHMANDU, JAN 25 -
The national flag carrier’s inability to acquire new aircraft and the projected rise in arrivals during Nepal Tourism Year has induced five domestic air operators to join forces to start international operations by establishing a new airline.
The country’s leading air operators—Buddha Air, Yeti Airlines, Guna Airlines, Agni Air and Simrik Air—are working to start operations by May 2011.
All five operators will have equal equity in this new venture that is estimated to be worth US$ 150 million. “All the five partners will invest equal equity,” said a source.
Currently, this venture is in the process of being registered and getting an air operator’s certificate (AOC) for international connectivity. “Discussions with the Ministry of Tourism and Civil Aviation (MoTCA) and the Civil Aviation Authority of Nepal (CAAN) are in progress,” the source said.
The new company that is yet to be named will have three aircraft. “We are now looking at Airbus 319, Airbus 320 or Boeing 737-800,” said one of the promoters of the proposed company.
In the past, the now-defunct Necon Air, Cosmic Air, FlyYeti and Air Nepal International had started international service but failed to sustain it. Earlier attempts to start international operations were solo efforts by individual airlines. However, this time five domestic air operators with some having a proven track record have come together.
Birendra Basnet, managing director of Buddha Air, and Vijay Shrestha, general manager of Yeti Airlines, are said to be actively involved in the whole process. Rameshwor Thapa, managing director of Simrik Air, is chairman of this new company. According to sources, multiple options of purchasing aircraft are being discussed currently that include purchase on ACMI basis. “There could be outright purchase also,” said a source. Initially, US$ 5-6 million will be invested in the project.
The new airline will eye major tourist hubs in the region for its business. “As per our plan, we will serve the Gulf countries, Malaysia, India, China and Singapore,” said a source.
With most of the earlier efforts by the Nepali private sector having failed, the promoters have decided to hire an international management team including the chief executive officer to run the airline. “Operation and engineering will be handled by qualified foreign staff,” said the source. With more than 1,700 Nepalis flying out of the country daily, the promoters say getting business won’t be tough.
SANGAM PRASAIN
KATHMANDU, JAN 25 -
The national flag carrier’s inability to acquire new aircraft and the projected rise in arrivals during Nepal Tourism Year has induced five domestic air operators to join forces to start international operations by establishing a new airline.
The country’s leading air operators—Buddha Air, Yeti Airlines, Guna Airlines, Agni Air and Simrik Air—are working to start operations by May 2011.
All five operators will have equal equity in this new venture that is estimated to be worth US$ 150 million. “All the five partners will invest equal equity,” said a source.
Currently, this venture is in the process of being registered and getting an air operator’s certificate (AOC) for international connectivity. “Discussions with the Ministry of Tourism and Civil Aviation (MoTCA) and the Civil Aviation Authority of Nepal (CAAN) are in progress,” the source said.
The new company that is yet to be named will have three aircraft. “We are now looking at Airbus 319, Airbus 320 or Boeing 737-800,” said one of the promoters of the proposed company.
In the past, the now-defunct Necon Air, Cosmic Air, FlyYeti and Air Nepal International had started international service but failed to sustain it. Earlier attempts to start international operations were solo efforts by individual airlines. However, this time five domestic air operators with some having a proven track record have come together.
Birendra Basnet, managing director of Buddha Air, and Vijay Shrestha, general manager of Yeti Airlines, are said to be actively involved in the whole process. Rameshwor Thapa, managing director of Simrik Air, is chairman of this new company. According to sources, multiple options of purchasing aircraft are being discussed currently that include purchase on ACMI basis. “There could be outright purchase also,” said a source. Initially, US$ 5-6 million will be invested in the project.
The new airline will eye major tourist hubs in the region for its business. “As per our plan, we will serve the Gulf countries, Malaysia, India, China and Singapore,” said a source.
With most of the earlier efforts by the Nepali private sector having failed, the promoters have decided to hire an international management team including the chief executive officer to run the airline. “Operation and engineering will be handled by qualified foreign staff,” said the source. With more than 1,700 Nepalis flying out of the country daily, the promoters say getting business won’t be tough.
Sunday, January 23, 2011
Nijgadh airport can get Boot-able by 2015: Study
SANGAM PRASAIN
KATHMANDU, JAN 24 -
Commercial operation of Nepal’s second international airport at Nijgadh, Bara could begin in 2015. Korea’s Landmark Worldwide Company (LMW), which did a detailed feasibility study for the airport, said the single-runway airport could be finished in 2015 if construction is started this year.
LMW plans to submit the feasibility study report to the Ministry of Tourism and Civil Aviation (MoTCA) by January-end. Once the feasibility study is completed, the airport will be developed under the “build own operate and transfer” (BOOT) model.
LMW’s feasibility study stated that the proposed airport could handle five to 15 million passengers annually and even accommodate the super-jumbo Airbus 380 after the first phase of construction. The estimated investment for the first phase, according to the feasibility study, would be US$ 600 million.
The airport would be expanded to accommodate 30 million passengers annually in the second phase. “The second phase will be commissioned in 2022,” said Binay B. Rawal, Nepal representative of LMW.
By the end of the third phase of construction, the airport will have a parallel runway enabling it to handle 60 million passengers annually. “The airport will have a three-storied terminal building with the latest systems and highly intelligent security equipment,” said Rawal.
The study has stated that a Kathmandu-Tarai fast track should be completed at least six months before the start of the airport’s commercial operation. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Rawal.
LMW had submitted a preliminary report of the detailed feasibility study for the second international airport in July 2010 and urged an early completion of the fast track. President and CEO of the South Korean company Lee Sang Ho had met with MoTCA officials and held discussions with the Civil Aviation Authority of Nepal (CAAN). LMW had presented options and a concept for the runway, the terminal and services at the proposed airport. MoTCA will call a global tender for the airport’s construction after receiving LMW’s report.
The second international airport project has a few hurdles to cross. The major issues are how soon the fast track can be completed and the airport’s operational modality. “It is still not clear what types of aircraft the government will allow to be diverted to the new airport,” said Rawal. CAAN officials said the government’s plan to upgrade Janakpur, Pokhara and Bhairahawa airports to regional international airports could make the proposed second international airport redundant.
KATHMANDU, JAN 24 -
Commercial operation of Nepal’s second international airport at Nijgadh, Bara could begin in 2015. Korea’s Landmark Worldwide Company (LMW), which did a detailed feasibility study for the airport, said the single-runway airport could be finished in 2015 if construction is started this year.
LMW plans to submit the feasibility study report to the Ministry of Tourism and Civil Aviation (MoTCA) by January-end. Once the feasibility study is completed, the airport will be developed under the “build own operate and transfer” (BOOT) model.
LMW’s feasibility study stated that the proposed airport could handle five to 15 million passengers annually and even accommodate the super-jumbo Airbus 380 after the first phase of construction. The estimated investment for the first phase, according to the feasibility study, would be US$ 600 million.
The airport would be expanded to accommodate 30 million passengers annually in the second phase. “The second phase will be commissioned in 2022,” said Binay B. Rawal, Nepal representative of LMW.
By the end of the third phase of construction, the airport will have a parallel runway enabling it to handle 60 million passengers annually. “The airport will have a three-storied terminal building with the latest systems and highly intelligent security equipment,” said Rawal.
The study has stated that a Kathmandu-Tarai fast track should be completed at least six months before the start of the airport’s commercial operation. “Without completing the fast track at least six months in advance, the airport cannot start commercial operation,” said Rawal.
LMW had submitted a preliminary report of the detailed feasibility study for the second international airport in July 2010 and urged an early completion of the fast track. President and CEO of the South Korean company Lee Sang Ho had met with MoTCA officials and held discussions with the Civil Aviation Authority of Nepal (CAAN). LMW had presented options and a concept for the runway, the terminal and services at the proposed airport. MoTCA will call a global tender for the airport’s construction after receiving LMW’s report.
The second international airport project has a few hurdles to cross. The major issues are how soon the fast track can be completed and the airport’s operational modality. “It is still not clear what types of aircraft the government will allow to be diverted to the new airport,” said Rawal. CAAN officials said the government’s plan to upgrade Janakpur, Pokhara and Bhairahawa airports to regional international airports could make the proposed second international airport redundant.
Saturday, January 22, 2011
CAAN unions criticise rental extension by TIA
SANGAM PRASAIN
KATHMANDU, JAN 21 -
Trade unions at the Civil Aviation Authority of Nepal (CAAN) have charged Tribhuvan International Airport (TIA) of misusing its authority by extending the rental agreement with shops, parking lots, duty-free shops, hotels and other services situated inside the airport premises without calling for bids.
CAAN’s amended airport service charge regulations have authorized TIA to double or triple the rental period without inviting tenders.
The CAAN unions alleged the Ministry of Tourism and Civil Aviation (MoTCA) of unilaterally ending the tender process and allowing the TIA management to extend the rental period after it expires. The TIA management has recently extended the rental period of 13 tea and coffee shops, hotels, gift shops, executive lounge, ATMs and handicraft shops.
The management has extended the rental period of the shops for at least three years. The old regulations had a provision of calling for tenders when the rental period ends.
“Extending the tenure of such services without a tender means ending competition with new ones,” Bishnu Prasad Marasini, general secretary of the National Employees Union of Nepal, CAAN said. He added that such a provision would limit the income of TIA and bar new establishments from entering.
The CAAN unions and high-level officials said the move was against the Public Procurement Act. TIA, the country’s sole international airport, generates about 10 percent of its income from such rentals.
The CAAN unions accused the MoTCA of unilaterally incorporating four clauses—31, 47, 67 and 68—in the airport service charge regulations to allow the TIA management to extend the rental period unilaterally.
“The said clauses in the new regulations have not been recommended by CAAN,” Marasini said.
According to him, the unions plan to launch an agitation against the ministry’s decision.
The new airport service charge regulations came into effect on August 10, 2010 superseding the 2006 regulations. Earlier, the regulations had a provision which required inviting tenders at intervals of one to two years.
“CAAN is not in a financially good position, and such a provision means making the organization bankrupt and fulfilling the vested interest of contractors and corrupt officials,” said a CAAN official on the condition of anonymity.
TIA general manager Dinesh Shrestha said that they had extended the rental period based on the new regulations.
“As per the new regulations, the TIA management is allowed to extend the rental period of old shops and other services by
increasing the rent in line with inflation when their terms end,” Shrestha said.
TIA charges a monthly rent of Rs 16,000 per sq ft from shops in the arrival lounge and Rs 11,000 per sq ft in the departure lounge. Hotels and restaurants pay a higher rental than shops.
KATHMANDU, JAN 21 -
Trade unions at the Civil Aviation Authority of Nepal (CAAN) have charged Tribhuvan International Airport (TIA) of misusing its authority by extending the rental agreement with shops, parking lots, duty-free shops, hotels and other services situated inside the airport premises without calling for bids.
CAAN’s amended airport service charge regulations have authorized TIA to double or triple the rental period without inviting tenders.
The CAAN unions alleged the Ministry of Tourism and Civil Aviation (MoTCA) of unilaterally ending the tender process and allowing the TIA management to extend the rental period after it expires. The TIA management has recently extended the rental period of 13 tea and coffee shops, hotels, gift shops, executive lounge, ATMs and handicraft shops.
The management has extended the rental period of the shops for at least three years. The old regulations had a provision of calling for tenders when the rental period ends.
“Extending the tenure of such services without a tender means ending competition with new ones,” Bishnu Prasad Marasini, general secretary of the National Employees Union of Nepal, CAAN said. He added that such a provision would limit the income of TIA and bar new establishments from entering.
The CAAN unions and high-level officials said the move was against the Public Procurement Act. TIA, the country’s sole international airport, generates about 10 percent of its income from such rentals.
The CAAN unions accused the MoTCA of unilaterally incorporating four clauses—31, 47, 67 and 68—in the airport service charge regulations to allow the TIA management to extend the rental period unilaterally.
“The said clauses in the new regulations have not been recommended by CAAN,” Marasini said.
According to him, the unions plan to launch an agitation against the ministry’s decision.
The new airport service charge regulations came into effect on August 10, 2010 superseding the 2006 regulations. Earlier, the regulations had a provision which required inviting tenders at intervals of one to two years.
“CAAN is not in a financially good position, and such a provision means making the organization bankrupt and fulfilling the vested interest of contractors and corrupt officials,” said a CAAN official on the condition of anonymity.
TIA general manager Dinesh Shrestha said that they had extended the rental period based on the new regulations.
“As per the new regulations, the TIA management is allowed to extend the rental period of old shops and other services by
increasing the rent in line with inflation when their terms end,” Shrestha said.
TIA charges a monthly rent of Rs 16,000 per sq ft from shops in the arrival lounge and Rs 11,000 per sq ft in the departure lounge. Hotels and restaurants pay a higher rental than shops.
Wednesday, January 19, 2011
MoF approves Rs 1.3b loan to NOC
The loan is expected to cover NOC’s losses for two months
SANGAM PRASAIN
KATHMANDU, JAN 20 -
The Ministry of Finance (MoF) has agreed to provide Rs 1.30 billion loan to the Nepal Oil Corporation (NOC) to settle its increasing dues and avert another possible fuel price hike planned by the corporation. The next Cabinet meeting is expected to endorse this decision. After getting nod from the MoF, the Ministry of Commerce and Supplies (MoCS) has forwarded the loan proposal to the Cabinet. The government will provide Rs 800 million from Employees’ Provident Fund and Rs 500 million from Citizen Investment Trust to the corporation. The MoF has put the land of Birgunj Sugar Mill and Sanjha Yatayat up as government collateral for the loan.
Following rise in the international fuel prices, the NOC had asked the government either to provide fund for allow it to hike fuel prices. According to the NOC, it is incurring monthly losses of Rs 750 million due to increase in international price.
The MoF agreed to provide loan to the corporation after it agreed not to hike fuel prices for at least next two months. “We agreed to provide loan to the NOC to ensure smooth supply,” said Rameshwor Khanal, finance secretary, at Parliament’s Public Accounts Committee meeting on Wednesday.
“It has been agreed that international fuel prices will be monitored for the next two months. And, if international prices increase further, NOC will be allowed to hike fuel prices in the country.” The loan is expected to cover NOC’s losses for two months. The NOC had proposed fuel price revision citing that the crude oil price in the international market price climbed to over US$ 100 per barrel. The NOC says it has to settle outstanding dues of about Rs 450 million with Indian Oil Corporation (IOC) in order to ensure regular supply.
After the latest price hike on Dec. 6, 2010, the corporation faced criticism from all quarters. Parliament’s Finance and Labour Committee had asked it to review the price hike. However, the NOC said that it was not possible to rollback the price hike and instead asked the government for financial support.
At the PAC meeting, Khanal asked the NOC to explore possibilities of credit from the IOC.
Lawmakers and the government officials at PAC meeting on Wednesday underscored the immediate need for introducing scientific fuel pricing system. They also asked the NOC to expedite the Raxual-Amlekhgunj cross-border oil pipeline project and initiate the construction of large oil storage to ensure smooth supply.
SANGAM PRASAIN
KATHMANDU, JAN 20 -
The Ministry of Finance (MoF) has agreed to provide Rs 1.30 billion loan to the Nepal Oil Corporation (NOC) to settle its increasing dues and avert another possible fuel price hike planned by the corporation. The next Cabinet meeting is expected to endorse this decision. After getting nod from the MoF, the Ministry of Commerce and Supplies (MoCS) has forwarded the loan proposal to the Cabinet. The government will provide Rs 800 million from Employees’ Provident Fund and Rs 500 million from Citizen Investment Trust to the corporation. The MoF has put the land of Birgunj Sugar Mill and Sanjha Yatayat up as government collateral for the loan.
Following rise in the international fuel prices, the NOC had asked the government either to provide fund for allow it to hike fuel prices. According to the NOC, it is incurring monthly losses of Rs 750 million due to increase in international price.
The MoF agreed to provide loan to the corporation after it agreed not to hike fuel prices for at least next two months. “We agreed to provide loan to the NOC to ensure smooth supply,” said Rameshwor Khanal, finance secretary, at Parliament’s Public Accounts Committee meeting on Wednesday.
“It has been agreed that international fuel prices will be monitored for the next two months. And, if international prices increase further, NOC will be allowed to hike fuel prices in the country.” The loan is expected to cover NOC’s losses for two months. The NOC had proposed fuel price revision citing that the crude oil price in the international market price climbed to over US$ 100 per barrel. The NOC says it has to settle outstanding dues of about Rs 450 million with Indian Oil Corporation (IOC) in order to ensure regular supply.
After the latest price hike on Dec. 6, 2010, the corporation faced criticism from all quarters. Parliament’s Finance and Labour Committee had asked it to review the price hike. However, the NOC said that it was not possible to rollback the price hike and instead asked the government for financial support.
At the PAC meeting, Khanal asked the NOC to explore possibilities of credit from the IOC.
Lawmakers and the government officials at PAC meeting on Wednesday underscored the immediate need for introducing scientific fuel pricing system. They also asked the NOC to expedite the Raxual-Amlekhgunj cross-border oil pipeline project and initiate the construction of large oil storage to ensure smooth supply.
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