The Cabinet has approved the Tourism Ministry’s proposal to write off more than Rs210 million in “disputed amounts” of Nepal Airlines Corporation (NAC).  

Two organizations under the ministry, NAC and the Civil Aviation Authority of Nepal (Caan), have been quarrelling over the money for the last one and a half decades.

Caan has been claiming that NAC has not settled its landing, parking and

navigation fees for the

period 2006-11, and has been imposing interest and penalties on the unpaid bill.

NAC, on the other hand, has been maintaining that it has already paid it.

“As the dispute between the two organizations started to mount, a taskforce was formed to study the matter and settle it permanently,” said Suresh Acharya, joint secretary at the ministry.

In line with the taskforce’s recommendation, the Caan board approved the decision to write off the disputed amount. The proposal was then sent to the Finance Ministry for its consent which gave the go-ahead.

“As Caan has already written off Rs80 million owed by NAC in the past, the Cabinet has said that this is the last time it will get such a reprieve,” Acharya said.