Jul 12, 2024

Committee suggests that more investment in NAC

Committee suggests that more investment in NAC

KATHMANDU, Oct 02: The Nepal Airlines Corporation (NAC) Reforms Recommendation Committee has suggested that more capital should be investment to make the national flag carrier more competitive.     

The Committee led by former Governor of Nepal Rastra Bank (NRB) Dipendra Bahadur Chhetri submitted its report to Minister for Culture, Tourism and Civil Aviation Sudan Kirati on Sunday stating that additional capital should be invested for the elevation of the NAC.     

CA Piyus Anand, Captain Om Gurung, Tikaram Rai and Sahara Neupane were the members in the Chhetri-led five-member Recommendation Committee.     

"Evidences are there that the concerned governments provide capital to the international airlines companies in need in the special circumstances. Considering this fact, the government should take the state-owned Corporation in a competitive state by investing additional capital amid other competitors," according to the report.     

Currently, the NAC is reeling under serious crisis with negative net worth of Rs 4.9 billion till the fiscal year 2078/079 BS.     

The total loan of the NAC stands at Rs 48.3 billion. The report has pointed out the NAC should explore ways to receive concessional loan and increase its business to reduce its loan.     

Likewise, the Committee has recommended that the Chief Executive of the NAC should be appointed through an open competition by a committee under the leadership of National Planning Commission Vice-Chairman.     

Likewise, management contract is also suggested to embrace modern management system.     

Furthermore, the Committee has recommended that the NAC could be run in a company model by welcoming a strategic partner.