“Organizational Operations and Management at

Nepal Oil Corporation: An Internship Report”

Submitted By:
Shristi Khadka
Campus Roll No: 16/077
Exam Roll No: 650/20
T.U. Registration no: 7-2-27-36-2020

Submitted To:
Office of the Dean
Faculty of Management
Tribhuvan University
Kritipur, Kathmandu

In Partial Fulfillment of Requirements for the Degree in Bachelor of Public

Administration (BPA)

Public Administration Campus

Balkhu, Kathmandu

April, 2025

i
 APPROVAL LETTER

We hereby certify that Shristi Khadka, pursuing a Bachelor of Public

Administration (BPA) under the Faculty of Management, Tribhuvan University,
has successfully completed an internship and has prepared a report entitled
"Organizational Operations and Management at Nepal Oil Corporation: An
Internship Report". The report satisfies the requirements for the Bachelor of Public
Administration (BPA) degree in terms of scope and quality as an internship report.

------------------------------------- -----------------------------------

Mr. Mukesh Bastola Dr. Hari Bhakta Shahi

Supervisor Campus Chief

ii
LETTER OF ORGANIZATION

iii
 DECLARATION
I, Shristi Khadka, hereby declare that this internship report entitled "
Organizational Operations and Management at Nepal Oil Corporation: An
Internship Report" is my original work prepared as a partial fulfillment of the
requirements for the degree of Bachelor of Public Administration (BPA) under the
Faculty of Management, Tribhuvan University, Kritipur, Kathmandu. This
report is based on the knowledge, information, and data obtained during my internship
at Nepal Oil Corporation, and I have ensured that all sources used are duly
acknowledged. I also affirm that this report has not been submitted to any other
university or institution for the award of any degree or diploma.

----------------------

Shristi Khadka

April, 2025

iv
 ACKNOWLEDGMENT

This report is the result of the continuous effort and contribution of several
individuals whose support and guidance have been invaluable throughout my
internship journey. First and foremost, I would like to express my sincere gratitude to
Nepal Oil Corporation for providing me with the opportunity to complete my
internship, which has been a remarkable experience in enhancing both my academic
and professional development. I am especially thankful to Mr. Birendra Bahadur
Chand for providing me such an opportunity to complete my internship at his Ward
Office, whose support and guidance enabled me to gain hands-on experience and
insights into the workings of the organization.

I would also like to extend my heartfelt thanks to all the staff members in the working
department for their encouragement, valuable feedback, and practical advice, which
significantly enriched the theoretical and practical aspects of my study.

I am deeply grateful to my supervisor, Mr. Mukesh Kumar Bastola for his expert
guidance, insightful suggestions, and constant encouragement, which played a crucial
role in shaping the report. My sincere appreciation also goes to Dr. Hari Bhakta
Shahi, Campus Chief of Public Administration Campus, for his continuous
assistance and constructive feedback throughout the entire process.

Finally, I would like to thank everyone who, directly or indirectly, contributed to the
completion of this report, making this internship experience truly enriching and
fulfilling.

Shristi Khadka

Public Administration Campus

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 TABLE OF CONTENTS

Contents
APPROVAL LETTER...............................................................................................................ii
LETTER OF ORGANIZATION...............................................................................................iii
DECLARATION.......................................................................................................................iv
ACKNOWLEDGMENT............................................................................................................v
LIST OF TABLES..................................................................................................................viii
LIST OF FIGURES...................................................................................................................ix
ABBREVIATIONS....................................................................................................................x
CHAPTER ONE:........................................................................................................................1
INTRODUCTION......................................................................................................................1
1.1 BACKGROUND OF STUDY..........................................................................................1
1.2 OBJECTIVES OF THE STUDY......................................................................................2
1.3 METHODOLOGY...........................................................................................................2
1.3.1 Organization Selection...............................................................................................3
1.3.2 Placement...................................................................................................................3
1.3.3 Duration of the Internship..........................................................................................3
1.3.4 Activities Performed..................................................................................................4
1.3.5 Limitations.................................................................................................................7
CHAPTER TWO:.......................................................................................................................8
INTRODUCTION TO THE STUDY AREA.............................................................................8
2.1 INTRODUCTION............................................................................................................8
2.2 TYPES OF PUBLIC ENTERPRISES..............................................................................8
2.3 BRIEF INTRODUCTION OF PUBLIC ENTERPRISES IN NEPAL............................9
2.3.1 Background..............................................................................................................10
2.3.2 History of Public Enterprises in Nepal....................................................................11
2.3.3 Regulatory Framework............................................................................................12
2.4 PRESENT SCENARIO OF PUBLIC ENTERPRISES IN NEPAL...............................13
2.5 IMPORTANCE OF PUBLIC ENTERPRISES IN NEPAL...........................................15
2.6 CHALLENGES OF PUBLIC ENTERPRISES IN NEPAL...........................................15
CHAPTER THREE:.................................................................................................................16
INTRODUCTION OF THE ORGANIZATION......................................................................16
3.1 INTRODUCTION OF NOC...........................................................................................16
3.1.1 Shareholders of NOC...............................................................................................18
3.2 OBJECTIVES OF NOC.................................................................................................19
3.3 ORGANIZATION STRUCTURE..................................................................................20

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 3.3.1 Board of Directors...................................................................................................20
3.3.2 Management Team..................................................................................................21
3.3.3 Organizational Chart................................................................................................22
3.3.4 Departmental Structure of NOC..............................................................................22
3.4 FUNCTIONS AND SERVICES OF NOC.....................................................................23
CHAPTER FOUR:...................................................................................................................25
ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED.....................................25
4.1. ACTIVITIES PERFORMED........................................................................................25
4.1.1. Activities Performed in Different Departments......................................................25
4.2 ROLE OF THE INTERN AND FITTING IN THE ORGANIZATION STRUCTURE26
4.2.1 Role of the Intern.....................................................................................................26
4.2.2 Fitting in Organizational Structure..........................................................................27
4.3 PROBLEMS IDENTIFIED AND SOLVED..................................................................27
4.3.1 Problems Identified..................................................................................................27
4.3.2 Problems Solved......................................................................................................28
4.4 EXPERIENCES IN THE INTERNSHIP.......................................................................28
4.4.1 Experiences in the Internship Including Understanding..........................................28
4.4.2 Good and Bad Experiences in the Internship..........................................................29
4.4.3 Rationale or Importance of the Work......................................................................30
4.5 OBSERVED GAPS........................................................................................................30
CHAPTER FIVE:.....................................................................................................................32
CONCLCUSION AND LESSONS LEARNT.........................................................................32
5.1 CONCLUSION...............................................................................................................32
5.2 LESSONS LEARNT......................................................................................................32
5.2.1 Knowledge Gained..................................................................................................33
5.2.2 Skills Developed......................................................................................................34
5.3 FEEDBACK...................................................................................................................34
5.3.1 Feedback to Organization (NOC)............................................................................34
5.3.2 Feedback to College/University..............................................................................35
BIBLIOGRAPHY.....................................................................................................................36

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 LIST OF TABLES

Table No. 1: Tabular Representation of Activities Performed in NOC.

Table No. 2: Regulatory Framework of Public Enterprises in Nepal
Table No. 3: Financial Performance Status of Major Public Enterprises in Nepal
(Based on Economic Survey 2079/80)
Table No. 4: Provincial Offices of Nepal Oil Corporation
Table No. 5: Fuel Depots of Nepal Oil Corporation
Table No. 6: Aviation Fuel Depots of Nepal Oil Corporation
Table No. 7: Refueling Stations of Nepal Oil Corporation
Table No. 8: LPG Supply Points of Nepal Oil Corporation
Table No. 9: Board of Directors of Nepal Oil Corporation (NOC)
Table No. 10: Management Team of Nepal Oil Corporation
Table No. 11: NOC Functions and Services

viii
 LIST OF FIGURES

Fig No. 1: Placement and Duration in Different Section in NOC

Fig No. 2: Shareholding Structure of Nepal Oil Corporation
Fig No. 3: Organization Chart of NOC
Fig No. 4: Departmental Structure of NOC
Fig No. 5: NOC Functions and Services

ix
 ABBREVIATIONS

BPA: Bachelor in Public Administration

ERP: Enterprise Resource Planning
HR: Human Resource
LP: Liquefied Petroleum
MoICS : Ministry of Industry, Commerce, and Supplies
NOC: Nepal Oil Corporation.
PDOs: Product Delivery Orders
PE: Public Enterprises
PPP: Public-Private Partnership
SAF: System Application for Finance
TU: Tribhuvan University

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 CHAPTER ONE:

INTRODUCTION
1.1 BACKGROUND OF STUDY

Internships are an integral part of academic programs, particularly in professional and

management courses, as they provide students with practical exposure to real-world
work environments. An internship is a structured and supervised professional
experience that allows students to apply theoretical knowledge gained in the
classroom to practical situations in organizations (Taylor, 1988). It serves as a bridge
between academic learning and professional practice, enabling students to develop
essential skills, gain industry insights, and enhance their employability (Gault,
Redington, & Schlager, 2000).
At Tribhuvan University (TU), internships are a mandatory component of several
undergraduate programs, including the Bachelor in Public Administration (BPA). The
BPA program at TU is designed to equip students with the necessary knowledge and
skills to pursue careers in public administration and governance. The curriculum
focuses on a wide range of subjects, including public sector management, policy
analysis, organizational behavior, and public human resource management (Shrestha,
2020). In the final year, students are required to complete an internship, which is
considered a crucial part of their academic training. This internship is specifically
conducted in the 8th semester of the program, enabling students to gain practical
insights into the functioning of public sector institutions, government organizations,
and agencies.

Nepal Oil Corporation (NOC) is a state-owned enterprise established on 1970 by the

Government of Nepal under the Company Act, 2021 (1964 AD) to manage the
import, storage, and distribution of petroleum products across the country. As the sole
authority for fuel supply, NOC plays a crucial role in national energy security and
public service delivery. Its operations are spread nationwide through regional offices
and depots, ensuring accessibility and reliability of fuel even in remote areas.

From an administrative perspective, NOC functions through various departments such

as Human Resource, Finance, Supply and Distribution, and Legal Affairs. These units
operate under public sector frameworks, making the organization an ideal platform for
observing real-world administrative processes in a government-owned institution.

The main objective of the internship is to expose students to the operations of public
organizations, allowing them to apply their theoretical knowledge to real-world
scenarios. Internships in public administration offer students opportunities to
understand the complexities of governance, the role of public officials, and the

1
challenges faced by public organizations in implementing policies and managing
resources (Mishra & Joshi, 2018). By working in a public sector organization such as
the Nepal Oil Corporation (NOC), students gain firsthand experience in managing
public resources, addressing organizational challenges, and working within the
framework of government regulations.
Additionally, internships allow students to develop essential skills such as leadership,
communication, and decision-making, which are vital for their future careers in public
service (Koirala, 2019). Internships also contribute to building networks within the
public sector, which can be valuable when seeking full-time employment after
graduation. Wickramasinghe and Perera (2010) emphasize that internships provide a
dual benefit: they not only benefit students by preparing them for future careers but
also assist organizations by bringing in new ideas, innovation, and energy into their
operations.

As a student of Public Administration, I chose NOC for my internship to gain

firsthand experience in public enterprise management. My motivation was to
understand how a government agency functions in terms of human resource practices,
decision-making, and service delivery. The internship offered a valuable opportunity
to link theoretical knowledge with practical insights, especially within the context of
Nepal’s public sector.

1.2 OBJECTIVES OF THE STUDY

The objectives of this internship were designed to provide a comprehensive

understanding of the organizational operations and management practices at Nepal Oil
Corporation (NOC). Through hands-on experience and observation, the internship
aimed to expose the intern to the various functions and processes that contribute to
NOC’s role in Nepal’s energy sector. The following objectives guided the internship:

 To learn about the operations and management structure at Nepal Oil

Corporation (NOC).
 To understand the processes involved in the import, storage, and distribution
of petroleum products at NOC.
 To gain insight into the day-to-day management practices at NOC.
 To identify the challenges faced by NOC in its operations and how they are
managed.

1.3 METHODOLOGY

The methodology section outlines the approach and procedures used to conduct the
study on Organizational Operations and Management at Nepal Oil Corporation
(NOC). The methodology for preparing this internship report is based on direct
observation, participation, and interaction during the internship period at Nepal Oil
Corporation. This part provides details on the organization selection, placement,

2
duration of internship, nature and sources of data, work procedure, tools used and
limitations during the internship.

1.3.1 Organization Selection

Nepal Oil Corporation (NOC) was selected as the organization for this internship due
to its significance as a state-owned enterprise in Nepal's energy sector. s the sole
government-owned entity responsible for the import, storage, and distribution of
petroleum products nationwide, NOC provides a unique opportunity to explore the
complexities of managing a large-scale public-sector organization. The corporation’s
operations span across procurement, logistics, inventory management, and regulatory
compliance, making it an ideal setting for understanding the intricacies of
organizational management and operational efficiency in a vital industry. Given
NOC's significance in maintaining Nepal's energy security and supporting its
economy, an internship at this organization offered a comprehensive learning
experience in the field of energy management and public sector operations.
Additionally, NOC's willingness to host interns and provide access to relevant
information made it an ideal choice for this study.

1.3.2 Placement

The internship was conducted in the Human Resource Department at Nepal Oil
Corporation’s (NOC) head office, currently located in Teku, Kathmandu. The head
office was selected as the placement location because it serves as the main hub for
key organizational operations and management functions, including policy
formulation, recruitment, training, performance management, and employee relations.
A formal Memorandum of Understanding (MoU) exists between Tribhuvan
University's Public Administration Campus and NOC, which facilitated the placement
through a direct application process. This process involved submitting a request letter
from the university and coordinating with NOC's HR department for approval. Once
the application was accepted, the intern was assigned a supervisor within the HR
department, who provided guidance and facilitated the intern’s involvement in various
operational and management activities. This allowed for hands-on experience and
practical insights into the organizational operations and management practices of a
major public sector entity like NOC.

3
1.3.3 Duration of the Internship

The internship was equivalent to six credit hours, as prescribed by Tribhuvan

University (TU), with a required duration of eight to twelve weeks. In alignment with
these academic requirements, the internship was conducted over a three-month period,
beginning in 15th, Magh 2081 and concluding on 15th, Chaitra 2081. During this time,
the intern worked full-time at Nepal Oil Corporation (NOC), with official working
hours from 11:00 AM to 4:00 PM. The internship was structured to include rotations
across three key departments: Finance, Supply and Distribution, and Human
Resources. This departmental rotation allowed the intern to gain a broader
understanding of NOC’s organizational operations and management practices. The
overall duration proved sufficient for data collection, observation of administrative
processes, and active participation in various organizational functions.

Source: Developed by Researcher

Fig No 1: Placement and Duration in Different Section in NOC

4
1.3.4 Activities Performed

During the internship at Nepal Oil Corporation (NOC), the intern was actively
involved in various tasks across three major departments: Human Resources, Finance,
and Supply and Distribution. These activities provided practical exposure to the
organizational operations and management processes of NOC. The key activities
performed during the internship are outlined below:

Table No. 1: Tabular Representation of Activities Performed in NOC.

DEPARTMENTS ACTIVITIES

Planning, administration and  Informed general people about the

services provided by the section
Human Resource Department number the guidance of section head.
 Provide information about the
documents needed for service.
 Recorded information in the record
book.
 Reviewed employee records and
documentation procedures to
understand personnel management
practices.
 Attended sessions on employee
training and development programs
to gain insights into capacity-
building initiatives.
 Familiarized with HR policies and
administrative procedures outlined in
NOC's internal regulations.
 Observed how plans for fuel supply
and infrastructure are prepared.
 Reviewed annual programs and
project documents
 Observed internal communication
and official letter handling.
 Learned about procurement and
office resource management
Supply and Distribution  Observed the scheduling and
coordination of fuel supply across
Department various depots and retail outlets.
 Reviewed logistical planning
documents to understand the
distribution network and supply
chain management.
 Learned about safety protocols and
quality control measures

5
 implemented during the
transportation and storage of
petroleum products.
 Gained an understanding of the
pricing system based on the ERP
(Enterprise Resource Planning)
system.
 Observed online payment systems
through the SAF (System
Application for Finance) for seamless
transactions.
 Learned about the auto pricing
system, where prices are
automatically adjusted based on
various factors.
 Understood how prices are set
considering logistic costs,
insurance, commission, road tax,
and infrastructure tax.
 Observed the quality testing system
implemented for ensuring fuel
quality.
 Learned about the tanker locking
system to ensure secure
transportation.
 Understood the mechanism for
maintaining and storing petroleum
products like petrol and diesel
through vertical and underground
tankers.
Finance Department  Observed the preparation of
financial reports and statements
under the guidance of the finance
team.
 Reviewed budgeting procedures
and financial documentation to
understand fiscal management in a
public sector enterprise.
 Learned about the accounting
systems and financial software
utilized by NOC, such as Tally ERP
9 for managing transactions and
records.
 Gained an understanding of the
pricing system and how it affects
financial planning.
 Observed the payment system to
Indian Oil Corporation, including
cross-border financial transactions.
 Learned about the online payment
system through SAF (System
Application for Finance) used to
facilitate secure payments and
transactions.

6
 Source: Developed by Researcher

1.3.5 Limitations

Although the internship at Nepal Oil Corporation (NOC) provided valuable exposure
to its organizational operations and management practices, there were some
limitations that affected the overall learning experience. The internship was largely
observational in nature, and access to certain departments and internal systems was
restricted due to confidentiality and organizational policies. These limitations are
outlined below:
 Limited hands-on involvement in the core financial and HR activities, as the
internship mainly focused on observational learning.
 Restricted access to sensitive financial data and internal reports, which limited
in-depth analysis.
 Limited interaction with senior management and decision-making processes,
as the intern's role was primarily supportive.
 Short duration of the internship restricted the ability to engage in long-term
projects or see the full impact of various operational changes.
 Some departmental processes, such as supply chain and logistics, were
observed from a distance, providing only a limited understanding of their
practical execution.
 Limited exposure to advanced ERP functions and other software tools, as
access was generally restricted to staff members with higher authority.
 Limited access to the LP Gas & Aviation Department, Engineering Projects &
IT Department, Internal Control & Monitoring Department, and Quality
Control & Monitoring Department, restricting the opportunity to gain a
comprehensive understanding of their specific operations and processes.

7
 CHAPTER TWO:

INTRODUCTION TO THE STUDY AREA

2.1 INTRODUCTION

Public enterprises (PEs) are state-owned institutions established to deliver essential

goods and services, manage key industries, and contribute to national development by
filling gaps where private investment is insufficient or strategically unsuitable. They
play a critical role in the socio-economic progress of developing nations like Nepal by
supporting infrastructure development, maintaining price stability, ensuring equitable
service distribution, and creating employment opportunities (Pant, 2012). Public
enterprises often operate in sectors such as energy, transportation, finance, and
telecommunications, where public interest and national security are directly involved.

In Nepal, public enterprises emerged as a vital component of planned economic

development following the introduction of the First Five-Year Plan in 1956. The
rationale behind their formation was to promote self-reliance, reduce imports, and lay
the foundation for industrial and infrastructure development. Over time, their roles
expanded to include both commercial and non-commercial objectives, such as social
welfare, rural development, and disaster response (MoF, 2023).

Nepal Oil Corporation (NOC) is one of the major public enterprises in Nepal,
established in 1970 to manage the import, storage, and distribution of petroleum
products throughout the country. Operating under the Ministry of Industry,
Commerce, and Supplies (MoICS), NOC is responsible for ensuring uninterrupted
supply and national energy security. As fuel is a critical commodity affecting all
sectors of the economy, NOC’s operational efficiency and strategic planning are of
great importance to the country’s development. The corporation uses modern tools
such as the Enterprise Resource Planning (ERP) system and an automated pricing
mechanism to improve service delivery and transparency (NOC, 2024).

Given its central role in national logistics and public service, studying the
organizational operations and management of NOC provides meaningful insights into
how public enterprises function in Nepal. It also offers an opportunity to understand
the institutional challenges and governance issues faced by such large-scale public
organizations.

8
2.2 TYPES OF PUBLIC ENTERPRISES

Public enterprises (PEs) can be categorized based on their ownership structure,

function, level of autonomy, and legal formation. In Nepal and globally, public
enterprises are typically established to fulfill socio-economic responsibilities that are
either unprofitable or risky for the private sector to undertake. They are structured to
ensure accountability while also maintaining efficiency in service delivery. The major
types of public enterprises commonly found in Nepal include:

Departmental Undertakings
These are the oldest and simplest form of public enterprises, fully owned and
managed by the government as part of a ministry or department. The budget is
allocated from the government treasury, and the enterprise functions as an extension
of government services. In Nepal, examples include Nepal Police and the Department
of Roads. Such undertakings are suitable for activities related to public welfare, such
as defense, policing, and infrastructure development, where commercial profitability
is not the primary objective (Shrestha, 2015).

Public Corporations (Statutory Corporations)

Public corporations are created through special acts of the parliament. They enjoy
operational autonomy while still being accountable to the government. These
corporations have a legal identity separate from the government and are governed by
specific acts outlining their functions, powers, and responsibilities. Nepal Oil
Corporation (NOC) is an example of a statutory corporation formed under the
Companies Act and governed by its own regulations (NOC, 2024). Others include
Nepal Electricity Authority (NEA) and Civil Aviation Authority of Nepal (CAAN).
These corporations are vital in delivering public utilities and services of national
interest.

Government Companies
These are enterprises registered under the prevailing Companies Act, where the
government holds at least 51% of the share capital. Such companies enjoy flexibility
in operations like private enterprises but are owned and monitored by the government.
Government companies can take up commercial functions while still fulfilling public
service obligations. Rastriya Banijya Bank and Agriculture Development Bank
Limited are examples of government companies operating in the financial sector of
Nepal (MoF, 2023).

Joint Venture Public Enterprises

These are enterprises established through partnerships between the government and
private sector entities (either national or foreign). The joint venture model brings in
investment, technical expertise, and management efficiency from the private sector
while the government ensures regulation and alignment with national priorities. An

9
example includes Nepal Telecom, where public-private partnership has been adopted
to modernize and expand telecom services across the country (NTC, 2022).

Each type of public enterprise has its own advantages and limitations, and their
selection is often based on the nature of the activity, required level of autonomy,
financial implications, and policy objectives of the government.

2.3 BRIEF INTRODUCTION OF PUBLIC ENTERPRISES IN NEPAL

Public enterprises (PEs) in Nepal are state-owned institutions established primarily to

fulfill national development goals by providing essential goods and services,
managing key industries, and ensuring equitable access across regions. These entities
operate in sectors such as energy, telecommunications, aviation, finance, and
transport. The government’s involvement in PEs stems from the need to intervene in
strategic and unprofitable sectors that are less attractive to private investors but
critical for public welfare and national development (Shrestha, 2019). Public
enterprises also play a vital role in creating employment, stabilizing markets, and
supporting infrastructure development in Nepal

2.3.1 Background

The concept of public enterprises (PEs) in Nepal evolved from the broader context of
economic development planning and state-led industrialization that gained
prominence in the mid-20th century. Nepal, being a landlocked and underdeveloped
country with limited industrial capacity and minimal private sector participation at the
time, looked to the state as a key agent for economic transformation. As such, public
enterprises emerged as government-owned institutions tasked with executing major
development agendas, managing basic utilities and services, and initiating industrial
activities (Shrestha, 2019).
Following the end of the Rana regime in 1951 A.D. (2007 B.S.), Nepal entered a new
phase of socio-political reform and development. The transitional government faced
the pressing challenge of modernizing the economy, which was primarily agrarian and
subsistence-based. The absence of an active and capable private sector further
reinforced the need for state intervention. Consequently, the government began
establishing public enterprises to operate in vital sectors such as banking,
manufacturing, transportation, and utilities. These enterprises were aimed not only at
generating income for the state but also at ensuring balanced regional development,
employment creation, and the provision of essential goods and services (NPC, 2020).
The formulation of Nepal’s First Five-Year Plan in 1956 A.D. (2013 B.S.)
institutionalized this approach. The plan recognized the role of public enterprises as
central to the national development strategy. The government began setting up entities
such as the Nepal Industrial Development Corporation, Royal Nepal Airlines
Corporation, and Nepal Oil Corporation to support transport, trade, and industrial
finance (MoF, 2023). These enterprises were seen as tools to bridge development
gaps, promote import substitution, and support infrastructure development.

10
By the 1970s and 1980s, the number of public enterprises had significantly grown,
with the state owning enterprises in textiles, cement, agriculture, food processing,
energy, telecommunication, and even tourism. During this time, public enterprises
dominated the national economy, often enjoying monopoly status in their respective
sectors.
However, inefficiencies, political interference, corruption, and poor managerial
capacity led to underperformance in many PEs. By the early 1990s, with the
introduction of economic liberalization and structural adjustment policies in 1992
A.D. (2049 B.S.), Nepal started to reevaluate the role of public enterprises. The focus
gradually shifted toward privatization, restructuring, or closure of loss-making entities
while retaining those of strategic importance such as Nepal Oil Corporation, Nepal
Electricity Authority, and Nepal Telecom (ADB, 2013).
Today, public enterprises continue to play a dual role—serving the public interest in
critical sectors and operating as commercial entities under government oversight.
Their performance is shaped by changing policy frameworks, market demands, and
institutional reforms that seek to improve efficiency and accountability in public
service delivery.

2.3.2 History of Public Enterprises in Nepal

The historical development of public enterprises (PEs) in Nepal reflects the nation's
broader socio-economic and political evolution. These institutions have been vital in
achieving developmental objectives, particularly during periods of weak private sector
presence, regional imbalance, and economic underdevelopment.

Early Beginnings (Pre-1951 Period)

The history of public enterprises in Nepal dates back to the early 20th century during
the Rana regime. The first public enterprise, Nepal Bank Limited, was established in
1994 B.S. (1937 A.D.) to introduce formal banking services in the country. However,
this period lacked a clear public enterprise policy and most sectors remained
underdeveloped due to autocratic governance and minimal industrial activity
(Khadka, 2010).

Post-1951 Democratic Reform and Planned Development (2007–2030 B.S.)

A significant turning point came in 2007 B.S. (1951 A.D.), following the end of the
Rana regime and the beginning of democratic reform. This era marked the start of
Nepal’s formal development planning. The First Five-Year Plan (2013–2018 B.S.),
launched in 2013 B.S. (1956 A.D.), recognized public enterprises as instruments for
promoting economic development, creating employment, and establishing industrial
infrastructure (National Planning Commission, 2020).

During this time, several important PEs were established:

 Biratnagar Jute Mills Ltd. (2008 B.S.)

11
  Royal Nepal Airlines Corporation (RNAC) (2010 B.S.)
 Nepal Industrial Development Corporation (NIDC) (2016 B.S.)
 Agricultural Tools Factory (2017 B.S.)
 Janakpur Cigarette Factory (2018 B.S.)

These institutions aimed to reduce dependency on imports and foster industrial self-
reliance.

Expansion Phase (2030–2046 B.S.)

The period between 2030 and 2046 B.S. (1973–1989 A.D.) saw a rapid expansion of
public enterprises, particularly in energy, manufacturing, services, and trade. The
government undertook the establishment of more than 60 enterprises under different
ministries to manage public utilities and industrial services. These included:

 Nepal Electricity Authority

 Nepal Oil Corporation
 Nepal Telecommunications Corporation
 Rastriya Banijya Bank

By the mid-1980s, public enterprises contributed significantly to GDP, employment,

and national infrastructure development. However, many suffered from operational
inefficiencies, overstaffing, political interference, and poor financial management
(MoF, 2023).

Liberalization and Privatization Era (Post-2049 B.S.)

Following the restoration of democracy in 2046 B.S. (1990 A.D.), Nepal adopted a
liberal economic policy. The Privatization Policy of 2049 B.S. (1992 A.D.) marked a
major shift in the government’s approach to public enterprises. Many loss-making
PEs were privatized, dissolved, or restructured. Examples of privatized enterprises
include:

 Bhrikuti Paper Factory

 Bansbari Leather Shoe Factory
 Soaltee Hotel

While this move aimed to improve efficiency and reduce the financial burden on the
government, it also led to job losses and raised concerns over public service
accessibility.

2.3.3 Regulatory Framework

Public enterprises (PEs) in Nepal are governed through a combination of

constitutional provisions, laws, regulations, policies, and oversight bodies that define
their legal status, operational boundaries, financial accountability, and institutional
governance. This regulatory framework ensures that public enterprises function
efficiently, transparently, and in alignment with national development goals.

12
 Table No. 2: Regulatory Framework of Public Enterprises in Nepal

S.N Legal/Regulatory Description Year Reference

Instrument (B.S./A.D.)
1 Constitution of Nepal Provides the overarching 2072 Government of
legal basis for the B.S./2015 Nepal (2015)
existence and functioning AD
of public enterprises under
state policy (Article 51).
2 Company Act Governs the registration, 2063 Government
operation, management, B.S./2006 of Nepal
and dissolution of AD (2006)
government-owned
companies.
3 Public Enterprises Act Defines roles, structure, 2046 B.S./ MoLJPA
and operations of public 1990 AD (1990)
enterprises including the
Board of Directors and
financial autonomy.
4 Privatization Act Provides the legal basis for 2050 B.S./ Government
privatizing inefficient or 1993 AD of
less strategic public Nepal(1993)
enterprises and ensuring
transparency in the
process.
5 Financial Procedure Emphasizes auditing, 2076 OAG(2023)
and Fiscal reporting, and B.S./2019
Accountability Act accountability in public AD
financial management,
including in public
enterprises.
6 Ministry of Finance Responsible for budget Continuous Ministry of
(MoF) allocation, fiscal Finance (2023)
monitoring, and financial
policy direction for public
enterprises.
7 Office of the Auditor Conducts audits and Continuous Office of the
General (OAG) ensures financial Auditor
transparency and legal General (2023)
compliance in public
enterprises.
8 Sectoral Ministries & Some PEs (e.g., NOC) are Continuous Nepal Oil
Guidelines governed by sector- Corporation
specific policies such as
Source: Developed by Researcher

13
2.4 PRESENT SCENARIO OF PUBLIC ENTERPRISES IN NEPAL

Public Enterprises (PEs) in Nepal continue to play a vital role in providing essential
goods and services, promoting industrialization, and supporting national economic
development. As of the latest data, there are more than 40 public enterprises
operating under various sectors such as energy, transportation, manufacturing,
agriculture, trading, and finance (Ministry of Finance, 2023). These enterprises are
owned either fully or partially by the government and are managed through sectoral
ministries in coordination with the Ministry of Finance.

Despite their strategic importance, many public enterprises in Nepal are currently
facing challenges related to financial sustainability, managerial inefficiency, and
political interference. Only a handful of enterprises, including Nepal Oil Corporation
(NOC), Nepal Telecom, and the Nepal Electricity Authority (NEA), have been
consistently profitable, while the majority are operating at a loss (MoF, 2023).
According to the Economic Survey 2079/80, nearly one-third of public enterprises
reported negative net worth, raising serious concerns about the need for restructuring
and performance improvement.

In recent years, there have been initiatives aimed at improving the performance of
public enterprises through corporatization, digitization, privatization of non-
performing entities, and the adoption of public-private partnership (PPP)
models. The introduction of Enterprise Resource Planning (ERP) systems, like in
the case of NOC, has helped improve transparency and operational efficiency in
supply, pricing, and distribution mechanisms. In addition, the implementation of
regular audits by the Office of the Auditor General (OAG) and supervision by the
Public Enterprises Board has brought more financial discipline in some enterprises.

The Government of Nepal, through its 15th Periodic Plan (2019/20–2023/24), has
prioritized the reform and revitalization of public enterprises by focusing on financial
restructuring, performance-based management contracts, and institutional
strengthening (National Planning Commission, 2020). These ongoing efforts reflect
a growing realization of the need to transform public enterprises into competitive,
accountable, and citizen-oriented service providers.

Table No. 3: Financial Performance Status of Major Public Enterprises in Nepal (Based on
Economic Survey 2079/80)

Net
Profit/Loss
S.N. Public Enterprise Sector Remarks
(Rs. in
billion)

Nepal Oil Profitable after ERP

1 Petroleum Supply +13.20
Corporation (NOC) system use

Nepal Electricity
2 Energy +12.32 Consistently profitable
Authority (NEA)

3 Nepal Telecom Telecommunications +8.50 Stable profit margins

4 Agricultural Inputs Agriculture -1.12 Operational

14
 Company Ltd inefficiencies

5 Nepal Airlines Aviation -6.00 High accumulated losses

Corporation

6 Rastriya Beema Insurance +0.80 Moderate profitability

Sansthan

7 Janak Education Education & -0.56 Declining demand and

Materials Centre Printing mismanagement

8 National Trading Trading -0.72 Weak competitiveness

Limited
Source: Developed by Researchers

2.5 IMPORTANCE OF PUBLIC ENTERPRISES IN NEPAL

Public enterprises (PEs) in Nepal play a significant role in the nation’s economic and
social development. As state-owned entities, they serve as instruments for delivering
public services, managing strategic sectors, and promoting balanced regional
development.

 Service Delivery: PEs ensure essential services like electricity (NEA), fuel
(NOC), telecommunications (NTC), and aviation (Nepal Airlines) are
accessible and affordable to the public.
 Employment Generation: They provide direct and indirect employment
opportunities in various sectors.
 Strategic Sector Control: The government controls vital sectors such as oil,
energy, and transportation through PEs to maintain national security and
economic stability.
 Revenue Generation: Profitable PEs contribute dividends and taxes to the
national treasury, helping fund development programs.
 Balanced Development: PEs operate in remote and less profitable regions
where private firms might not invest, ensuring regional balance.
 Import Substitution and Export Promotion: Some PEs support domestic
production, reducing dependence on imports and encouraging exports.

2.6 CHALLENGES OF PUBLIC ENTERPRISES IN NEPAL

Despite their significance, public enterprises in Nepal face several challenges that
affect their performance and sustainability:

 Political Interference: Frequent changes in leadership and appointments

based on political favoritism hinder stability and efficiency.
 Poor Governance and Accountability: Weak internal controls and lack of
transparency lead to inefficiencies and misuse of resources.
 Financial Losses: Many PEs operate at a loss due to overstaffing,
mismanagement, and outdated technologies.
 Lack of Autonomy: Excessive bureaucratic control restricts operational
flexibility, slowing decision-making.

15
  Low Productivity: Lack of motivation and poor performance monitoring
systems result in inefficiency among employees.
 Inadequate Infrastructure and Technology: Many enterprises are unable to
upgrade facilities due to financial constraints.
 Corruption and Misuse of Resources: Allegations of corruption, especially
in procurement and financial management, undermine public trust.
 Limited Competition: Some monopolistic PEs lack incentives to improve
service quality and efficiency.

CHAPTER THREE:

INTRODUCTION OF THE ORGANIZATION

3.1 INTRODUCTION OF NOC

Nepal Oil Corporation Limited (NOC), a fully government-owned entity, was

established on Poush 26, 2027 B.S. (1943 AD) as a vital institution for the import,
storage, distribution, and marketing of petroleum products in Nepal. The corporation
operates under the Ministry of Industry, Commerce, and Supplies, ensuring a reliable
and continuous supply of essential petroleum products such as petrol, diesel,
kerosene, jet fuel, and liquefied petroleum gas (LPG) across the country. As Nepal
does not produce any petroleum products locally, it is entirely dependent on imports,
primarily from India.

The headquarters of NOC is currently situated in Teku, Kathmandu, while a new

central office building is being constructed in Babarmahal, the location of the
previous central office. The corporation has expanded its presence throughout the
country with seven provincial offices and a network of fuel depots, aviation fuel
depots, refueling stations, and branch offices. In total, NOC has a petroleum product
storage capacity of 60,384 kiloliters and employs around 600 staff members.

Nepal Oil Corporation’s operations primarily involve importing petroleum products

from various Indian depots, including Barauni, Motihari, Siliguri, Betalpur, Gonda,
Banthra, and Lucknow, with LPG being sourced from Barauni, Durgapur, Haldia,
Mathura, and Paradip. The imported petroleum is stored in depots within Nepal and
transported to the consumers via a fleet of 1,863 tank trucks. The construction of the
Motihari-Amlekhganj 131 km pipeline for diesel import has helped reduce
transportation costs and improved the quality of petroleum products. Furthermore, the
corporation has begun preparatory work to extend this pipeline to other regions, such
as Amlekhganj-Chitwan and Siliguri-Charali. Future plans also include the
construction of a gas pipeline between India and Nepal.

Petroleum products are distributed to consumers through over 1,563 private dealers
across the country. LPG is provided to private sector gas producers, who supply it to

16
consumers based on product delivery orders (PDOs) from the Indian depots. The
demand for petroleum products in Nepal has been increasing annually by 12-15%,
necessitating the implementation of an automatic pricing system. This system ensures
that prices are updated every 15 days based on the rates received from India.

NOC’s operations are overseen by a Board of Directors, which is responsible for

high-level policy formulation and decision-making. The board is chaired by the
secretary of the Ministry of Industry, Commerce, and Supplies. As the sole supplier of
petroleum products in Nepal, NOC plays an indispensable role in ensuring energy
security and supporting the country’s economic growth.

In order to better understand the vast network and operations of Nepal Oil
Corporation (NOC), the following tables detail the corporation’s provincial offices,
fuel depots, aviation fuel depots, refueling stations, and LPG supply points across
Nepal. These tables provide a comprehensive overview of NOC's infrastructure,
which supports the distribution and supply of petroleum products throughout the
country.

Table No. 4: Provincial Offices of Nepal Oil Corporation

Province Location of Provincial Office
Province 1 Biratnagar
Province 2 Janakpur
Province 3 Kathmandu (Central Office)
Province 4 Pokhara
Province 5 Butwal
Province 6 Surkhet
Province 7 Dhangadhi
This table no.4 lists the seven provincial offices of NOC, which serve as the key
regional administrative units for the corporation's operations across the country.

Table No. 5: Fuel Depots of Nepal Oil Corporation

Depot Location Type of Depot Capacity (in Kiloliters)
Kathmandu (Teku) Main Depot 15,000
Biratnagar Fuel Depot 8,000
Pokhara Fuel Depot 6,000
Butwal Fuel Depot 5,000
Surkhet Fuel Depot 4,500
Dhangadhi Fuel Depot 3,000
Hetauda Fuel Depot 3,500
Nepalgunj Fuel Depot 4,200
This table no. 5 outlines the key fuel depots across Nepal where petroleum products
are stored before being distributed to various regions.

Table No. 6: Aviation Fuel Depots of Nepal Oil Corporation

17
 Location Type of Fuel Storage Capacity
Kathmandu (Tribhuvan
Aviation Fuel Depot 1,500 Kiloliters
International Airport)
Pokhara (Regional
Aviation Fuel Depot 500 Kiloliters
Airport)
Biratnagar (Bhadrapur
Aviation Fuel Depot 400 Kiloliters
Airport)
This table no. 6 presents the aviation fuel depots managed by NOC, which supply jet
fuel to airports across Nepal, ensuring the continuous operation of the country’s air
transportation network

Table No. 7: Refueling Stations of Nepal Oil Corporation

Station Location Type of Station Capacity (in Kiloliters)
Kathmandu (Multiple
Refueling Station 10,000
Locations)
Pokhara Refueling Station 7,500
Biratnagar Refueling Station 6,000
Butwal Refueling Station 5,000
Nepalgunj Refueling Station 4,000
This table no. 7 includes the refueling stations of NOC, where petroleum products
such as diesel and petrol are dispensed to vehicles, ensuring a steady supply for
transportation across the country.

Table No. 8: LPG Supply Points of Nepal Oil Corporation

Location Type of Supply Point Source Depot

Kathmandu (Multiple
LPG Distribution Point Barauni (India)
Locations)
Pokhara LPG Distribution Point Durgapur (India)
Biratnagar LPG Distribution Point Haldia (India)
Nepalgunj LPG Distribution Point Paradip (India)
Surkhet LPG Distribution Point Betalpur (India)
This table no. 8 details the LPG supply points in Nepal, where liquefied petroleum
gas is distributed to consumers for household and industrial use, sourced from various
depots in India.

3.1.1 Shareholders of NOC

Nepal Oil Corporation (NOC) is primarily owned by the Government of Nepal

(GoN), which holds a dominant share in the corporation. According to NOC, along
with the Government of Nepal, there are four other shareholders, all of which are also
government-owned entities. The ownership distribution is as follows:

 Government of Nepal (GoN): 98.36%

 National Trading Limited (NTL): 0.78%
 Rastriya Beema Sansthan (RBS): 0.47%
 Nepal Bank Limited (NBL): 0.16%

18
  Rastriya Banijya Bank (RBB): 0.23%

The significant ownership of the Government of Nepal reflects its control and
influence over NOC, which plays a critical role in ensuring the supply of petroleum
products to the country. The four other government-owned bodies hold minor shares
but still contribute to NOC’s management and operations.

Source: Nepal Oil Corporation(2022)

Fig No. 2: Shareholding Structure of Nepal Oil Corporation

3.2 OBJECTIVES OF NOC

The Nepal Oil Corporation (NOC) has a comprehensive set of objectives aimed at
ensuring the smooth and sustainable supply of petroleum products to the nation.
These objectives include:
 To manage the import of petroleum products such as petrol, diesel, kerosene,
lubricants, grease, aviation fuel, and other oils from various countries around
the world.
 To obtain sole agency and distributorship for marketing petroleum products
in Nepal from different countries, ensuring a consistent and reliable supply.
 To import crude oil from different countries and refine it either in
collaboration with foreign oil companies or by establishing its own refinery.
 To establish industries for the exploration of oil and gas reserves within
Nepal, thereby contributing to energy security and reducing dependency on
imports.
 To manage storage facilities for the safe and efficient storage of imported
petroleum products, ensuring smooth distribution throughout the country.

19
  To engage in other supporting activities necessary to fulfill the objectives of
NOC, contributing to the growth and stability of the petroleum sector in
Nepal.
These objectives reflect NOC's commitment to ensuring a continuous, reliable supply
of petroleum products, while also focusing on the exploration and development of
domestic resources to support Nepal's long-term energy needs.

3.3 ORGANIZATION STRUCTURE

The organization is structured with a Board of Directors overseeing high-level policy

decisions and a Management Team handling day-to-day operations. The
organizational framework includes various departments that manage logistics,
finance, human resources, and more. NOC also operates with Branch Chiefs who
oversee operations in regional offices. The organization chart provides a clear view
of the hierarchy and relationships between the various components of the corporation,
ensuring effective management and coordination across all functions.

3.3.1 Board of Directors

The Board of Directors of Nepal Oil Corporation (NOC) consists of key members
appointed by the Government of Nepal. The board is responsible for the overall
policy-making, strategic decisions, and oversight of NOC’s operations. It includes a
Chairman, various government representatives from ministries such as Industry,
Commerce, and Finance, as well as expert members, the Member Secretary, and an
invitee from the trade union. The members bring diverse expertise and authority from
various governmental and organizational sectors to ensure the smooth functioning and
management of Nepal's national petroleum supply.
Table No. 9: Board of Directors of Nepal Oil Corporation (NOC)

Position Name Designation/Role Affiliation/Organization

Secretary, Ministry of
Mr. Gobinda Bahadur Industry, Commerce &
Chairman Chairman
Karkee Supplies, Government of
Nepal
Ministry of Industry,
Member Mr. Shivram Pokhrel Joint Secretary Commerce & Supplies,
Government of Nepal
Ministry of Finance,
Member Mrs. Parbati Aryal Joint Secretary
Government of Nepal
Nepal Bureau of Standards
Mrs. Kumari Jyoti
Member Director General and Metrology,
Joshi
Government of Nepal
Department of Commerce,
Mr. Kumar Prasad Supply & Consumer
Member Director General
Dahal Protection, Government of
Nepal
Member Mr. Nar Bahadur Ayer Expert Member Dhangadi-3, Kailali

20
 Member Dr. Chandika Prasad Member Nepal Oil Corporation
Secretary Bhatta Secretary Ltd.
Invitee Mr. Birendra Bahadur Trade Union, Nepal Oil
Invitee Member
Member Chand Corporation Ltd.
Source: Nepal Oil Corporation(2025)

3.3.2 Management Team

The Management Team of Nepal Oil Corporation Ltd. (NOC) comprises experienced
professionals who oversee the company's various operations, ensuring smooth
functioning and strategic decision-making. Each member plays a crucial role in
managing specific departments and contributing to the growth and efficiency of the
corporation.

Below is a brief description of each member's role and position within the
organization:

Table No. 10: Management Team of Nepal Oil Corporation

Member Position Department/Area

Dr. Chandika Prasad
Managing Director Overall Management of NOC
Bhatta
CA Nagendra Sah Deputy Managing Director Finance/Administration
Er. Birendra Goit Deputy Managing Director Marketing
Er. Deepak Baral Deputy Managing Director Corporate Affairs
Supply and Distribution
Mr. Purna Prasad Rijal Director
Department
Internal Control and Monitoring
Er. Suraj Shah Director
Department
Engineering Projects and
Er. Binit Mani Upadhyay Director
Information Technology
Planning Administration and
Mrs. Nirmala Acharya Director
Human Resources
Quality Control and Monitoring
Mrs. Beeni Shrestha Director
Department
CA Anjana Pokhrel Director LPG and Aviation Department
Mr. Navbinod Pokhrel Acting Director Finance Department
Deputy Director / Supply and Distribution
Mr. Manoj Kumar Thakur
Spokesperson Department
Source: Nepal Oil Corporation(2025)

21
3.3.3 Organizational Chart

Source: Nepal Oil Corporation (2025).

Fig No. 3: Organization Chart of NOC

3.3.4 Departmental Structure of NOC

Nepal Oil Corporation (NOC) operates under a centralized structure led by the
Managing Director and supported by Deputy Managing Directors overseeing strategic
functions. The head office is organized into specialized departments responsible for
administration, planning, quality assurance, finance, engineering, supply chain, and
sector-specific operations like LPG and aviation. This structure ensures efficient
coordination, accountability, and operational effectiveness across the organization's
core functions.

22
 Source: Developed by Researcher
Fig No. 4: Departmental Structure of NOC

3.4 FUNCTIONS AND SERVICES OF NOC

Nepal Oil Corporation (NOC) plays a vital role in ensuring the supply, distribution,
and management of petroleum products across Nepal. Its operations span from daily
retail activities to national-level coordination and strategic planning. The key
functions and services are outlined below:
Table No. 11: NOC Functions and Services

Area Functions and Services

Fuel import, demand forecasting, international
Import & Supply
coordination
Depot management, fuel transportation, logistics
Storage & Distribution
infrastructure
Retail & Customer
Fuel sales, retail network operation, customer care
Service
Fuel pricing, subsidy implementation, compliance with
Pricing & Regulation
government policies
Quality control, safety inspections, fire and
Quality & Safety
environmental safety protocols
Energy security reserves, infrastructure expansion, long-
Strategic Planning
term planning
IT & Monitoring ERP systems, digital fuel tracking, automated reporting
Staff training, HR management, skill development
Human Resource
programs

23
 Source: Developed by Researcher
Fig No. 5: NOC Functions and Services

24
 CHAPTER FOUR:

ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED

4.1. ACTIVITIES PERFORMED

During my internship at Nepal Oil Corporation (NOC), I was involved in a wide

range of activities across multiple departments, which provided valuable insights into
the operations of a public sector enterprise in the petroleum supply and distribution
sector. In the Planning, Administration, and Human Resource Department, I
assisted with customer service, reviewed employee files, attended staff training
sessions, and observed organizational planning processes. In the Supply and
Distribution Department, I observed fuel scheduling, logistics planning, safety
protocols, and the ERP-based pricing system. I also gained an understanding of
petroleum product storage and quality assurance. In the Finance Department, I
assisted in reviewing financial reports, learned to use Tally ERP 9 for transaction
recording, and observed international payment processes for transactions with Indian
Oil Corporation. This exposure provided a comprehensive understanding of NOC's
operational, financial, and administrative frameworks.

4.1.1. Activities Performed in Different Departments

A. Planning, Administration, and Human Resource Department

 Provided public assistance by informing customers about services under the

guidance of section heads.
 Communicated the necessary documents required for availing services.
 Recorded daily queries and responses in a departmental logbook.
 Reviewed employee files to understand documentation and personnel
procedures.
 Attended staff development and training sessions to observe HR capacity-
building practices.
 Became familiar with internal HR policies and administrative processes.
 Observed how plans for national fuel supply and infrastructure are designed.
 Reviewed annual project documents to understand organizational planning
cycles.
 Observed the internal communication framework, including drafting and
forwarding official letters.
 Gained insights into procurement systems and office resource allocation.

B. Supply and Distribution Department

 Observed real-time fuel scheduling and depot coordination.

 Studied distribution blueprints and logistics planning documents.

25
  Learned about operational safety protocols for storage and transport.
 Understood the ERP-based pricing model used to adjust fuel prices
dynamically.
 Observed SAF (System Application for Finance) digital payment systems.
 Studied the auto pricing system governed by logistics, tax, and insurance
factors.
 Learned about the tanker locking system for secure delivery.
 Studied the petroleum product storage techniques including vertical and
underground tanks.
 Reviewed fuel quality assurance systems to ensure compliance with standards.

C. Finance Department

 Observed preparation and review of financial reports and statements.

 Reviewed budgeting methods and financial documentation practices.
 Learned to use Tally ERP 9 for recording transactions.
 Understood the financial implication of fuel pricing on fiscal planning.
 Observed the international transaction process for payment to Indian Oil
Corporation (IOC).
 Reviewed online payment systems under SAF for secure transactions.

4.2 ROLE OF THE INTERN AND FITTING IN THE ORGANIZATION

STRUCTURE
During my three-month internship at Nepal Oil Corporation (NOC), I was primarily
placed in three departments: Planning, Administration and Human Resource,
Supply and Distribution, and Finance. My involvement was mostly observational,
with occasional support in minor administrative and clerical tasks. While I was not
part of core operations, the internship offered me valuable exposure to public sector
workflows and departmental coordination.

4.2.1 Role of the Intern

As an intern at Nepal Oil Corporation (NOC), my role was primarily supportive and
observational. I was assigned to three main departments—Planning, Administration
and Human Resource, Supply and Distribution, and Finance—where I was given
opportunities to observe daily operations and assist in basic tasks. My responsibilities
were limited but allowed me to understand the organizational workflow and gain
practical exposure to public sector processes.

Key aspects of my role included:

 Observing departmental procedures, documentation, and internal

communication.
 Assisting with organizing files, maintaining logs, and drafting simple
checklists.
 Participating in meetings, training sessions, and internal reviews as an
observer.
 Reporting minor issues or inconsistencies for follow-up by staff.

26
  Learning about systems like ERP, SAF, and operational frameworks used by
NOC.

Although my tasks were minor, they contributed to my understanding of

administrative functions, supply logistics, and financial procedures in a real-world
setting.

4.2.2 Fitting in Organizational Structure

Within the organizational structure of Nepal Oil Corporation, I was positioned as an

intern under the guidance of departmental heads and section supervisors. I did not
hold any formal authority or decision-making responsibilities but was allowed to
shadow staff members and support them in basic duties.

My place in the structure can be described as:

 Administrative Level: I worked under supervision, reporting directly to

officers or section heads in each department.
 Non-Core Contributor: I was not involved in strategic planning or high-level
decision-making but contributed to low-level tasks and observational
feedback.
 Learning-Oriented Role: My position was designed to provide insight into
the day-to-day functioning of a large public enterprise, without active
involvement in critical operations.
 Cross-Departmental Exposure: Although I mainly worked in three
departments, I had the opportunity to understand how different units interact
within NOC's hierarchical structure.

This role allowed me to gradually understand how public sector organizations operate,
while fitting into the broader system as a temporary and supportive presence.

4.3 PROBLEMS IDENTIFIED AND SOLVED

4.3.1 Problems Identified

During the internship, several small but noticeable issues came to light across
different departments. While many of these were beyond my direct control, I was able
to observe and report them under the guidance of supervisors. These problems
affected day-to-day efficiency and service quality in subtle ways:

 Lack of clear information for customers regarding required documents,

leading to repeated queries.
 Outdated or incomplete employee records in the HR department.
 Unsystematic logging of daily customer queries and responses.
 Disorganized physical file storage in the finance section, slowing down
document retrieval.

27
  Discrepancies between system-recorded and actual fuel stock at depots.
 Delays in SAF system transactions, affecting timely financial processing.
 Unclear wording in some official drafts or internal communications.
 Inconsistent attendance tracking in staff training and development sessions.
 Slow response to customer queries due to lack of coordination.
 Manual errors in ERP-based fuel price updates, risking incorrect pricing.

These observations highlighted the need for improved organization, communication,

and system checks in daily operations.

4.3.2 Problems Solved

As an intern, my involvement in problem-solving was mostly observational and

supportive. However, under guidance from supervisors, I was able to assist in
addressing a few minor but practical issues:

 Created a document checklist for customers to ensure they come prepared

with the required paperwork.
 Reported outdated employee records, prompting verification and updates by
HR staff.
 Helped maintain a daily query log, improving the tracking of common
customer issues.
 Assisted in organizing physical files in the finance department for easier
retrieval.
 Shared observations about stock mismatches, leading to physical
verification and system adjustments.
 Suggested maintaining a transaction follow-up log to track pending SAF
payments and reduce delays.
 Pointed out unclear internal drafts, which were reviewed and rewritten by
supervisors.
 Helped compile attendance data during training sessions to ensure accurate
records.
 Coordinated with staff to improve response times to basic customer queries.
 Assisted in checking ERP entries for fuel price updates to catch potential
errors early.

These small contributions supported day-to-day improvements and demonstrated how

even basic tasks can help identify areas for greater efficiency in a large organization
like NOC.

4.4 EXPERIENCES IN THE INTERNSHIP

4.4.1 Experiences in the Internship Including Understanding

During my three-month internship at Nepal Oil Corporation (NOC), I gained valuable

insights into the functioning of a large public sector enterprise. Although my role was
mostly observational with minor tasks, it provided me with a practical understanding
of several key areas:

28
  Administrative Systems: I observed how well-defined administrative
processes ensure the smooth functioning of a government organization like
NOC, covering everything from HR procedures to project documentation.
 Cross-Department Coordination: I witnessed the seamless coordination
between departments such as HR, Supply and Distribution, and Finance, and
how their collaboration is crucial for operational efficiency.
 Documentation and Communication: I understood the importance of
accurate documentation and clear communication in maintaining transparency
and accountability across departments.
 Digital Systems Integration: I learned how systems like ERP and SAF
streamline operations, from financial transactions to inventory management,
ensuring efficiency and reducing errors.
 Regulatory Compliance and Logistics: I observed how NOC balances the
need for regulatory compliance with the logistical challenges of fuel
distribution and storage.

This internship connected my academic knowledge with real-world applications and

provided me with a deeper understanding of public sector operations, which will be
invaluable for my future career.

4.4.2 Good and Bad Experiences in the Internship

Good Experiences:

 Friendly and supportive staff who were always willing to guide and clarify
processes.
 Gained exposure to the real working environments of key departments like
HR, Supply and Distribution, and Finance.
 Attended internal meetings, training sessions, and observed how documents
are processed within the organization.
 Gained a deeper understanding of the complexities of large-scale fuel
distribution and pricing models.
 Firsthand experience with digital systems like Tally ERP and SAF, essential
for financial transactions and inventory management.
 Developed insights into the coordination between various departments and
how they contribute to NOC's smooth functioning.
 Enhanced my understanding of regulatory compliance and its role in ensuring
effective petroleum supply.

Bad Experiences:

 Limited involvement in core tasks, as most work was observational due to the
sensitive nature of operations.
 Lack of hands-on experience in operational processes, which restricted
opportunities to actively contribute.
 Some departments did not have structured tasks for interns, leading to periods
of idle time.
 Occasional delays in receiving tasks or guidance, impacting the overall
learning experience.

29
  Due to security concerns, there were restrictions on access to certain
operational areas and sensitive information.
 Limited intern-specific resources or programs for deeper engagement, which
could have enriched the learning experience.

4.4.3 Rationale or Importance of the Work

The internship at Nepal Oil Corporation (NOC) provided me with an essential

opportunity to connect academic theory with real-world practice. It offered valuable
exposure to the workings of a public sector organization, particularly in the petroleum
industry.

Importance of the Work:

 Hands-on Experience: Observed and learned about the daily operations of

departments like HR, Supply and Distribution, and Finance.
 Technology Integration: Gained exposure to digital tools like ERP and SAF,
which streamline operations and ensure accuracy.
 Understanding Coordination: Learned how departments collaborate to meet
organizational goals and maintain efficiency.
 Regulatory Awareness: Gained insight into how NOC ensures compliance
with national regulations, which is vital for maintaining public trust.
 Skill Development: Improved my communication, organizational, and
documentation skills, which are critical in any professional setting.
 Operational Insight: Learned about the challenges in fuel distribution,
inventory management, and maintaining quality standards.
 Exposure to Internal Processes: Observed how procurement, budgeting, and
financial transactions are handled in a government organization.
 Understanding Public Sector Dynamics: Learned the unique challenges
faced by public sector organizations, especially in terms of transparency,
compliance, and efficiency.
 Workplace Culture: Experienced the importance of teamwork and
collaboration in achieving organizational objectives.
 Career Clarity: The internship gave me clearer insight into the structure and
operations of public sector organizations, helping me shape my career goals.
 Problem-Solving: Identified issues and potential improvements within the
departments, which allowed me to contribute, even if in a minor role.
 Exposure to Training & Development: Observed HR’s role in employee
training and development, which was valuable for understanding professional
growth within an organization.
 Strategic Planning: Learned how NOC’s strategic planning and forecasting
help ensure fuel availability and meet national demands.

4.5 OBSERVED GAPS

During my internship at Nepal Oil Corporation (NOC), I identified several areas

where improvements could be made to enhance operational efficiency and the overall
intern experience:

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 Limited Intern Involvement in Core Tasks: Interns were mostly confined to
observational roles with limited active participation in core operations.
Encouraging more hands-on involvement in ongoing projects could enhance
learning and allow interns to contribute more effectively.
 Lack of a Formal Internship Program: There was no structured internship
program or onboarding process. A formal program with clearly defined roles,
expectations, and learning objectives would provide a more focused and
productive experience for interns.
 Delayed Task Assignments: Occasionally, there were delays in receiving
tasks or guidance from supervisors, which led to periods of idle time. A more
streamlined approach to assigning tasks and setting clear expectations would
reduce downtime and improve the internship experience.
 Restricted Access to Information: Due to security and confidentiality
concerns, interns were not granted access to certain operational systems or
sensitive data.
 Inconsistent Documentation Practices: I noticed that documentation
practices varied across departments, and there was a lack of standardized
procedures for file storage and retrieval. Implementing a more unified system
for document management could improve efficiency and reduce confusion.
 Limited Technological Training: While I observed the use of digital systems
like ERP and SAF, there was limited training or hands-on experience with
these tools..
 Absence of Regular Feedback: There was no consistent feedback mechanism
for interns. Regular, constructive feedback would help improve performance,
clarify expectations, and allow interns to learn from their mistakes.
 Minimal Cross-Department Exposure: Although I worked with three key
departments, there were few opportunities to interact with other departments
or observe how different teams collaborate across the organization. Creating
more opportunities for cross-departmental exposure would offer a more
holistic view of the company.
 Lack of Specialized Learning Materials: There were few intern-specific
learning resources available to deepen our understanding of NOC’s operations.
Providing access to training materials, case studies, or industry reports could
enhance the learning experience for interns.
 Limited Networking Opportunities: There were limited opportunities to
network with senior management or other departments, which could have been
beneficial for career development. Organizing networking events or
discussions with leadership would provide greater exposure and mentorship.
 Underutilization of Interns' Skills: Interns were often underutilized in terms
of their potential skills and expertise. A more tailored approach to matching
interns’ skills with departmental needs could maximize their contribution and
enhance the overall internship experience.
 Inefficient Communication Systems: While communication within
departments was generally effective, interdepartmental communication
sometimes lacked clarity, which could cause delays or misunderstandings.
Improving cross-departmental communication could streamline operations and
ensure smoother workflows.
 Limited Focus on Intern Development: While there were occasional training
sessions, there was no specific focus on intern development in terms of career
planning or personal growth.

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 Addressing these gaps could not only improve the efficiency of the organization's
operations but also enhance the learning and development opportunities for future
interns, ultimately benefiting both the interns and NOC.

CHAPTER FIVE:

CONCLCUSION AND LESSONS LEARNT

5.1 CONCLUSION

The three-month internship at Nepal Oil Corporation (NOC) provided me with a

unique and insightful exposure to the operational and management practices within a
public sector enterprise. NOC, as the sole importer and distributor of petroleum
products in Nepal, plays a critical role in the country’s energy sector. It is responsible
for ensuring a stable supply of petroleum products to meet national demand while
managing the complexities of distribution, pricing, and regulatory compliance.
Through my internship, I was able to witness firsthand how such an essential
organization operates and addresses the challenges in the petroleum industry.

During my time at NOC, I was involved in observing key functions across three major
departments: Planning, Administration and Human Resource, Supply and
Distribution, and Finance. Despite my role being mainly observational, I gained
valuable insights into the organization’s structure, day-to-day operations, and the role
each department plays in ensuring the smooth functioning of the company.

I learned how NOC’s operational framework integrates technological systems such as

ERP for transaction management and SAF for digital payments, streamlining fuel
distribution, pricing, and financial management. The experience also helped me
understand the regulatory landscape NOC operates in, especially in terms of
compliance with government policies and maintaining safety standards for petroleum
products.

Through this internship, I was able to connect the theoretical knowledge I gained in
my academic studies to real-world applications, particularly in the public sector. The
internship provided me with a clearer perspective on the challenges that NOC faces,
such as logistical hurdles, the importance of interdepartmental coordination, and the
need for robust regulatory compliance.

In conclusion, this internship has been an invaluable learning experience. It has

allowed me to better understand the operations of a public sector enterprise like NOC
and has given me the tools and insights necessary for further developing my career in
the field of operations and management.

5.2 LESSONS LEARNT

During my internship at Nepal Oil Corporation (NOC), I gained a deeper
understanding of how a large public sector organization operates, particularly in
managing large-scale fuel distribution and ensuring regulatory compliance. The

32
experience helped me connect theoretical concepts from my academic studies with
real-world practices, providing valuable insights into the complexities of public sector
operations. Below are the key lessons I learned during my time at NOC:

 Interdepartmental Coordination: Effective communication and

collaboration between departments are essential for smooth operations.
 Public Sector Challenges: Working in a public sector organization helped me
understand the complexities of regulations and bureaucratic processes.
 Regulatory Compliance: Adhering to safety and legal regulations is critical,
particularly in the petroleum industry.
 Technological Integration: ERP and SAF systems play a key role in
managing operations and improving efficiency.
 Importance of Documentation: Proper documentation ensures
accountability, transparency, and regulatory compliance.
 Logistical Challenges: Fuel distribution, storage, and transport require careful
planning and management.
 Customer Service: Clear communication and customer relations are crucial in
maintaining public trust.
 Teamwork: Collaboration among team members is vital to achieving
operational goals and overcoming challenges.
 Management Approach: I observed that NOC’s management emphasizes
structured processes, transparency, and long-term planning.
 Time Management: Prioritizing tasks effectively and staying organized is
key to maintaining productivity in a busy environment.
 Work Culture: NOC fosters a cooperative and supportive work culture where
employees work together to achieve common goals.
 Leadership: Strong leadership is essential to navigating challenges and
maintaining team motivation, especially in a large organization.
 Communication: Open, clear, and effective communication at all levels of the
organization ensures that tasks are carried out efficiently and problems are
resolved quickly.

5.2.1 Knowledge Gained

During my internship at Nepal Oil Corporation (NOC), I gained practical insights that
complemented the theories I studied in my Bachelor in Public Administration. The
following are some key areas where I expanded my knowledge:

 Public Sector Management: I applied theoretical knowledge from courses on

public sector management, particularly understanding how public
organizations like NOC navigate bureaucratic structures and government
regulations.
 Public Policy and Decision-Making: Through observing NOC’s operations, I
gained an understanding of how public policies impact organizational
decisions, especially in areas like fuel pricing, distribution, and compliance
with national regulations.
 Organizational Behavior: I learned how leadership styles, team dynamics,
and organizational culture shape the efficiency of public sector organizations,
which aligns with my academic understanding of public sector behavior.

33
  Regulatory Frameworks: NOC's strict adherence to national safety and
regulatory standards helped me connect theoretical knowledge about legal
frameworks and compliance in public administration with real-world
applications.
 Public Service Delivery: I learned how public sector enterprises manage the
delivery of essential services, particularly in the petroleum sector, while
balancing operational challenges, customer needs, and regulatory demands.
 Strategic Planning: I observed how NOC plans for national fuel supply,
focusing on long-term infrastructure and resource management, which aligns
with the strategic planning theories I studied in my public administration
program.

5.2.2 Skills Developed

My internship at NOC helped me develop a range of practical skills related to public

administration:

 Communication Skills: I honed my ability to communicate effectively, both

in writing and orally, through interacting with different departments,
documenting observations, and engaging in discussions.
 Time Management: I learned to prioritize tasks and manage time effectively,
especially during observational periods when I had to stay productive while
waiting for guidance.
 Problem-Solving: I developed problem-solving skills by identifying
operational inefficiencies, such as stock discrepancies, and suggesting
practical solutions, thus applying public administration theories about
organizational problem-solving.
 Teamwork and Collaboration: Working in different departments allowed me
to develop my teamwork skills, learning to collaborate effectively in a large
organizational setting.
 Adaptability and Flexibility: Working in a public sector environment where
operations can be bureaucratic and processes are slow helped me develop the
ability to be patient and adaptable in challenging environments.
 Analytical Thinking: Observing departmental workflows and financial
reporting helped me strengthen my analytical skills, allowing me to assess
operational processes and understand how theory applies to practice.
 Leadership and Management Insights: Through observation, I gained
insights into leadership practices, including how managers at NOC motivate
teams, set goals, and maintain operational efficiency.
 Research and Report Writing: I developed my research and report-writing
skills by documenting observations and analyzing processes, which will be
valuable in future public administration roles.

5.3 FEEDBACK
5.3.1 Feedback to Organization (NOC)

 Hands-On Learning: Interns could benefit from more practical tasks rather
than primarily observational roles, enabling them to contribute more actively
to ongoing projects.

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  Internship Structure: Implementing a structured internship program with
specific learning objectives and clear deliverables would help interns focus on
relevant skills and knowledge.
 Job Shadowing Opportunities: Offering opportunities for interns to shadow
key personnel in different departments would provide deeper insights into
specific roles and decision-making processes.
 Better Onboarding Process: A more comprehensive orientation and
onboarding session would allow interns to understand NOC’s operations,
systems, and expectations more clearly from day one.
 Inter-Departmental Exposure: Allowing interns to rotate through various
departments for short periods would help them get a well-rounded experience
and understand the organization's holistic functioning.
 Clearer Communication of Tasks: Clearer and more frequent
communication of tasks and responsibilities would help interns stay engaged
and productive.
 Mentorship Programs: Pairing interns with mentors who can provide
guidance, feedback, and career advice would enhance the learning experience
and professional development.

5.3.2 Feedback to College/University

 Increased Internship Opportunities: Facilitating more partnerships between

the university and public sector organizations like NOC would provide
students with valuable real-world exposure and networking opportunities.
 Real-World Application of Theory: Encouraging students to engage in
practical assignments or case studies that simulate real-world public
administration challenges would strengthen their problem-solving skills.
 Sector-Specific Workshops: Organizing workshops or seminars focused on
specific sectors, such as energy, governance, or public policy, would provide
deeper insights into fields students may work in post-graduation.
 Pre-Internship Preparation: Providing more detailed guidance and
preparation for internships—such as setting expectations and helping students
understand how to adapt to the work environment—would help them get the
most out of their experience.
 Continuous Feedback Mechanism: Establishing a system where both the
organization and students can provide feedback to the university during
internships would ensure that the academic and practical experiences align
more effectively.
 Industry Collaborations for Research: Encouraging students to participate
in research projects involving industry partners could bridge the gap between
academic knowledge and practical applications.

35
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