Strategic partnership to be introduced between NAC and Ministry of Finance

10th Jun, 2021 | Tourism Mail Crew

KATHMANDU, June 10: Discussions have been going on for years to introduce a strategic partnership in the Nepal Airlines Corporation. The commitment to enter into strategic partnership and increase capital has been reiterated to make the corporation competitive.

In order to make its services efficient and competitive, the officials are engaged in internal discussions to give meaning to the issue of introducing strategic partnership, which has been discussed many times before.

Deputy Prime Minister and Finance Minister Bishnu Poudel has mentioned that the process of recruiting strategic partners through business and competition will be started by restructuring the organization of the corporation in the budget of the Fiscal Year 2078/079 BS. At the same time, it has been mentioned that the share capital structure of the corporation will be changed and increased.

While the Ministry of Finance is also interested in entering into partnerships and increasing capital to make the corporation competitive, they have also intensified internal preparations, said Dimprakash Poudel, General Manager of the corporation.

"The process of entering into the partnership and how to bring it in will be discussed at the next meeting of the board of directors," Poudel said.

He said that homework is being done to increase the capital of the corporation. Former executive chairman and current Chairman Sushil Ghimire had informed that a proposal to increase the authorized capital of the corporation to Rs 50 billion had already been sent to the ministry. Earlier, the authorized capital was only Rs 300 million.

Chairman of the corporation Ghimire had increased the capital by Rs 49.70 billion and sent it to the Ministry of Tourism for approval as there was a problem in attracting investment due to lack of authorized capital. His proposal was not approved by the ministry.

General Manager Poudel said that they have the responsibility to address the issues in the budget and implement them and the need is the same now. He said that discussions are being held with the Talukdar Ministry of Tourism on this issue.

The government task force formed by the then Tourism Minister Yogesh Bhattarai to make suggestions for the reform of the corporation had suggested restructuring the organization and bringing in strategic partners through business and competition.

The task force formed under the coordination of Ghimire, the former tourism secretary and the current chairman of the corporation, had suggested bringing strategic partners immediately.

In the report submitted by the task force, it was suggested to bring the corporation into a public company and issue shares to various institutions and bodies from the general public. The report pointed out that the lack of strategic partnership and political appointments were at the root of the corporation's problem.