KATHMANDU: The Nepal Oil Corporation (NOC) has said that it has to pay Rs 21 billion till last of August to the Indian Oil Corporation (IOC) for the purchase of petroleum products.

The amount to be paid to the IOC has gone up for the NOC’s failure to pay it on time due to heavy loss in the sale of petroleum products for long to the NOC.

NOC’s Spokesperson Binitmani Upadhyay said accessible supply of petroleum products by clearing the dues to the IOC is a challenge for NOC.

The government had doled out Rs 7 billion in loan to the NOC some weeks ago as the NOC had no money to purchase petroleum products after its reserve funds was empty.

Likewise, NOC had taken Rs 3 billion in loan from Rastriya Banijya Bank (RBB) to ensure accessible supply of petroleum products.