Losses at NOC double the net profits from PEs

A new report prepared by the Ministry of Finance states that the losses at the Nepal Oil Corporation (NOC) is double the amount that 34 state owned public enterprises (PE), except Nepal Telecom (NT) and Agriculture Development Bank, Nepal (ADBN), make.

The losses at the NOC has been estimated to be Rs 7.18 billion due to continued increase in petroleum prices in the international market while total profits of public enterprises (PEs) has been estimated at around Rs 3.51 billion.

Of the total profits PEs made in the fiscal year 2006-07, NT, ADBN pushed the total profits to Rs 7.96 billion. The year before this, PEs made Rs 2.54 billion profit.

Out of 36 PEs, 22 have registered net profits and 14 are still in loss in 2006-07. In the previous fiscal year, 19 PEs had incurred losses.

Udaypur Cement Industry, Dairy Development Corporation and Hetauda Cement Industry have witnessed marginal increase in their sales.

PEs under the industrial sector continues to go on losses while those under service sector posted a net profit of Rs 568.4 million.

Through 36 PEs, government has only recovered a mere 1.96 percent of the government's total investment. nepalnews.com ia July 16 08