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Home Prime News

Delay in Relocation of TIA’s Aviation Fuel Depot Due to Land Acquisition Issues

CEO Tab by CEO Tab
June 30, 2025
in Prime News
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NOC expedites petroleum storage facility construction process
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The relocation of the aviation fuel depot at Sinamangal, Tribhuvan International Airport (TIA), has been delayed due to unresolved land handover issues between the Nepal Oil Corporation (NOC) and the Civil Aviation Authority of Nepal (CAAN).

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Although the government had decided to move the depot to Gauchar, citing safety concerns, CAAN has yet to officially hand over the designated land, causing the project to stall.

At a recent press briefing, Pradeep Kumar Yadav, Head of NOC’s Sinamangal Depot, explained that progress is hindered due to the lack of site demarcation, clearance, and removal of existing structures on the new site. Despite multiple formal requests, only minor earthworks have been done over the past eight months.

Background:

  • The government decided to relocate the depot after a plane crash in July 2024 (Saurya Airlines) raised major security concerns.
  • The master plan for upgrading TIA’s air traffic capacity includes shifting the depot from the current high-risk location.
  • CAAN allocated 60 ropani land at Gauchar, currently part of the Nepal Army Golf Course, for the new depot site.

Current Challenges:

  • Removal of approximately 200 trees and old buildings is pending.
  • Land demarcation and a lease exemption proposal are still under review at the Ministry of Culture, Tourism, and Civil Aviation.
  • According to Hansaraj Pandey, General Manager of TIA, land transfer will proceed once the lease issue is resolved.

Project and Budget:

  • NOC signed a consultancy agreement with IOE (Institute of Engineering, Pulchowk) on Mangsir 5, 2080 (Nov 21, 2023) to prepare a detailed project report (DPR).
  • The final DPR is expected by the end of Asar 2081 (mid-July 2024).
  • The estimated project cost is NPR 7 billion.
  • Plans include construction of 8 vertical fuel tanks and 2 water tanks for fire control, adhering to API (American Petroleum Institute) standards.

Urgency of Relocation:

  • The current depot, established nearly 50 years ago, poses international aviation safety risks due to proximity to the runway.
  • The runway-to-taxiway distance falls short of the 172.5 meters required by international standards—currently it is only 90 meters.
  • Daily fuel distribution from the depot averages 400 kiloliters, while its storage capacity is 7,660 kiloliters.

NOC currently operates 10 aviation fuel depots and 2 refueling stations across the country and sources all petroleum products from Indian Oil Corporation (IOC). The corporation’s total petroleum storage capacity nationwide stands at 60,384 kiloliters.

In summary, while technical groundwork is underway, bureaucratic delays and coordination lapses continue to hinder the urgent relocation of this critical aviation infrastructure.

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