Am I doing ok ?

I run on the treadmill with 1 incline & speed 10 for 20 mins (HR ~130-140) and then directly walk for another 20 mins on the treadmill with 9 incline & speed 5 (HR ~130-140) .

Total time on the threadmill is 40 mins a day, I do this from Mon - Thurs and sometimes Sat & Sun as well, depends whether I have time or not. But 4 days minimum, 6 days maxium per week.

Will I be able to loose some fat around the stomach using this method?

I'm about 5'6 150 lbs
 
Yes.

Don't forget to cool down by lowering the incline back to 1 and walk slower for 5 minutes. Then stretch some. Also, a warm-up of 5 minutes walk at incline 1 would be good.

BTW - if you want to simulate road running, try incline 2 instead of 1.
 
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