NAC should have a strategic partner to compete the market, says the Minister

Posted on by Pinkey Rai

Accounting the issues of irregularity of the procurement process of Wide body of Nepal Airlines Corporation (NAC), Public Accounting Committee of Parliament had asked for clarification with Minister of Culture, Tourism and Civil Aviation, Rabindra Adhikari. Tourism Minister has suggested to conduct further studies if necessary.

Minister of Culture, Tourism and Civil Aviation, Rabindra Adhikari stated that strategic partner should be included in order to boost market of Nepal Airlines Corporation (NAC).

In the meeting of Public Accounting Committee of Parliament held to discuss about the issue of the procurement process of Wide body of NAC yesterday (December 5), Minister Adhikari accepted that the corporation could not compete in current international market.

Tourism Minister stated that not only strategic partner investment but also requires effective management for NAC’s development. He also urged that going for a company model along with a strategic partner would be better for NAC to operate smoothly.

Previously, NAC demanded a sum of NRs 20 billion with government for capital enhancement as the corporation was going in losses.

Previously, the board of directors decided to demand NRs 20 billion with the contemporary government of Sher Bahadur Deuba. However, along due to the change of Government, the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) had suggested the corporation to revise the amount. According to the Ministry’s suggestion, the corporation decided to request NRs 5 billion from the Ministry. The letter was sent to Finance Ministry on the month of May, 2018. Unfortunately, the Finance Minister returned the document.

Currently, the capital of NAC is only NRs. 370 million. However, NAC’s capital amounts to over 3.10 billion rupees after adding the cost of a MA60 and Y-12e aircraft granted by China. The government has suggested NAC to include the grant of NRs 2.13 billion for MA 60 and NRs 580 million for Y-12e aircraft to extend the capital.

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Pinkey Rai