First Business News Portal in English from Nepal
KATHMANDU: The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has started process to bring in the long-discussed strategic partner in Nepal Airlines Corporation (NAC). The Ministry is currently working with objective of making the NAC’s service effective by bringing in strategic partners in the corporation which is facing financial crisis.
By bringing in the strategic partner, the government intends to improve the capacity and economic condition of the corporation, as per MoCTCA officials.
As government is not in mood to completely privatize NAC, international company is being given opportunity to invest in it and expand the market of the corporation.
Buddhi Sagar Lamichhane, joint secretary at the MoCTCA, informed that there is a plan to issue public shares for the strategic partners as soon as the international company arrives. “The strategic partners we bring in will also bring in equity investments, manage them and give profits to the corporation,” he said. We will only bring such a company as a partner, ‘he said.
Dim Prakash Poudel, managing director of the corporation, said that a framework including strategic partners has been submitted to the ministry on the basis of various alternative studies done for the improvement of the corporation in the budget. He informed that the government has decided to increase the capital through the budget and restructure the organization.
In order to bring in strategic partners, the corporation is going to re-evaluate its assets and liabilities.
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