The Indian Oil Corporation (IOC) Monday resumes the exportation of petroleum products to Nepal, local newspaper The Himalayan Times reported on Tuesday.

A high-ranking Indian official Monday said 1,009 kilolitres of petroleum products have been routed to Nepal, the report says.

Last week, IOC slashed the supply quantum by 40 percent, citing non-payment on the part of Nepal.

The Indian official said in view of the agreement between IOC and Nepal Oil Corporation (NOC), there was no question of not supplying petroleum products to Nepal.

In April, Nepali former secretary at the Ministry of Industries, Commerce and Supplies Bharat Bahadur Thapa and officials of the NOC visited Indian capital New Delhi and made a pact with the IOC of trenched payment every fortnight.

NOC has about 6 billion Nepali rupees (around 91.6 million U.S. dollars) in unpaid bills to settle with the Indian supplier.