South Asia

Published: Saturday 15 September 2007

fuel crisis in nepal: As India curtails oil supplies to Nepal, financially bankrupt Nepal Oil Corporation (NOC) has sought a Nepali Rs one-billion loan from its government to partially clear the mounting dues. In a letter to ministries of supplies and finance, the state-owned company requested for funds to avert a possible oil crisis in the country. NOC, in the letter, said due to huge losses, it failed to make payments to its supplier, the Indian Oil Corporation (IOC), for the month of August. "Given the delay in payment, the supplier has stopped issuing oil on credit and reduced supplies sharply. If normal supply is not resumed it will lead to a severe oil crisis in the country," it said. For the month of August NOC had asked IOC for petroleum products worth Nepali Rs 3.44 billion.

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