KATHMANDU, June 25: Nepal Oil Corporation (NOC) successfully settled outstanding loan payments it owed to the Indian Oil Corporation (IOC) after a two-year period.

The corporation has confirmed that it has remitted the remaining amount of Rs 3.20 billion, effectively clearing all dues owed to IOC for fuel purchases.

NOC follows a payment schedule of the 8th and 23rd of every month for fuel procurement. In line with this, the corporation made the final installment payment of Rs 3.20 billion to IOC on June 12, promptly concluding the loan repayment process.

The corporation resorted to purchasing fuel on credit from IOC due to escalating prices caused by the Russia-Ukraine conflict. From mid-December 2017, NOC began incurring losses, accumulating a total loss of 31 billion rupees by mid-August 2022. Among this, IOC's outstanding amount stood at 24 billion rupees.

IOC had exerted pressure on the NOC through the Indian Embassy in Kathmandu, expressing concern over the pending dues.

In addition to IOC's loan, NOC also had debts of seven billion rupees to the government and three billion rupees to commercial banks. While the corporation has successfully repaid the three billion rupees loan from commercial banks, it has initiated the payment process by remitting 700 million rupees as the first installment to clear the government's loan.

The government loan of seven billion rupees is set to be repaid in two annual installments, with the first installment of 700 million rupees already settled. Consequently, NOC's outstanding debt to the government currently stands at 6.3 billion rupees.

Presently, the corporation boasts a monthly profit of approximately 3.5 billion rupees, with an estimated profit of 1.75 billion rupees generated every 15 days, as reported by NOC officials.

 
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