In its plan submitted to Ministry of Finance (MoF), NTL has said it will invest Rs 150 million to set up a gas bottling plant and Rs 100 million on petrol pumps. It is also mulling over constructing business complexes at its head office in Teku and Pokhara and has earmarked Rs 250 million for the purpose.[break]
“We will invest Rs 20 million for setting up 10 sales counters in the capital and additional Rs 150 million for increasing our business volume," Laxman Agrawal, general manager of NTL, told Republica.
To fund its projects, NTL has said it will sell off 18 ropanis of land at Teku and 50,000 units of shares of Bishalbazar Company. The plan also promises restructuring the company, under which it aims to downsize workforce and reschedule loans.
"We will start the process of sell land to state-owned agencies and implement the plan once the MoF endorses our proposal,” Agrawal said.
According to Agrawal, NTL will immediately set up a bottling plant in the central region, whereas petrol pumps will be opened in the districts where NTL has its land, including Pokhara.
NTL owns 76 ropanis of land in different parts of the capital and also holds a large stretch of land in trading hubs like Dhangadhi, Nepalgunj, Surkhet, Bhairahawa, Pokhara, Birjunj, Biratnagar, Dang and Dhankuta. It has also unveiled a plan of setting up fair price shops in order to facilitate government´s intervention into the market.
Currently, NTL is dealing with petroleum products, machineries, electronics goods and food items.
"Along with starting new business, we are also planning to expand trading of construction materials in addition to cement," Agrawal added.
With the implementation of new plan, NTL has claimed its annual transactions will increase to Rs 6 billion from existing Rs 500 million. With the restructuring, it has projected to cut salary expenditure by at least 50 percent.
NTL is currently spending Rs 65 million per annum on salary. As for the settlement of liability, it has proposed to repay loans of Rs 100 million of the MoF and additional Rs 340 million of different financial institutions under the loan structuring plan.
Agrawal said the company submitted its business plan to MoF after the ministry, responding to its initial business plan, sought detail business plan, including its human resource and financial condition, on Oct 13, 2010.
The plan was submitted to the MoF through Ministry of Commerce and Supplies (MoCS) on Wednesday.
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