NOC unlawfully gives petroleum supply contract to Birat Oil

KATHMANDU, Nov 4: Nepal Oil Corporation (NOC) has unlawfully issued Rs 200 million to Birat Oil, a private petroleum organization, to open Letter of Credit (LC) for importing petroleum items to Nepal.

Additionally, the state-possessed fuel monopolist arrangements to buy petroleum items imported by Birat Oil at expanded rate.

Birat Oil is supplying petrol to NOC at Rs 199 for each liter and diesel at Rs 187 for each liter. Petrol is as of now retailed at Rs 104, while diesel costs Rs 81 for every liter.

Twenty-two household and worldwide firms had indicated enthusiasm to supply petroleum items to Nepal after NOC looked for Expression of Interest (EoI) a month ago.

A very put NOC authority said the delicate to supply fuel to Birat Oil was given to Birat Oil on the course of NOC Managing Director Gopal Bahadur Khadka. The authority said rates cited by different firms are at any rate Rs 30 for each liter lower than the ones cited by Birat Oil. In addition, different firms had not looked for assets from NOC to open LC.

"According to the agreement, NOC will need to purchase fuel purchased from its cash," the authority said. "Our figuring shows Birat Oil will make benefit worth Rs 40 million without making any noteworthy venture."

Birat Oil is bringing diesel and petrol from Siliguri, India where petrol costs IRs 66.11 (Rs 105.77) and diesel is accessible at IRs 49.55 (Rs 79.28). It will then offer petrol and diesel to NOC at Rs 199 and Rs 187 for each liter, separately.

Sources at NOC said 25 tankers stacked in Siliguri will enter Kathmandu soon. They said Khadga have even consented to pay traditions obligation of the petroleum items.

Khadka told Republica that NOC has caused Birat Oil to open LC worth Rs 20 million. "Cost is not the issue. The need of great importance is to convey petroleum items to the nation," he included.

He likewise said it is not obligatory for NOC to purchase petroleum items supplied by Birat Oil. "The administration will take choice on this issue. To begin with let the tankers land here," he included.

Mukunda Ghimire, executive of NOC, likewise said NOC will buy the fuel supplied by Birat Oil.