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Kathmandu: Nepal has formally requested grant assistance from India to relocate the aviation fuel depot at Sinamangal and construct a new fully modern depot in Kathmandu. The project, estimated to cost around NPR 6.54 billion, was proposed during the recent bilateral meeting held in New Delhi.
The request was placed in the fifth meeting of the Nepal India Joint Working Group on petroleum and gas. According to the Ministry of Industry, Commerce and Supplies, Nepal also used the platform to propose a new plan to import cooking gas through pipeline in the future.
The government has already decided to move the existing depot near Tribhuvan International Airport to the Nepali Army golf course area in Guhyeshwari, citing rising safety concerns and increased aircraft movement. The detailed project report has been completed by the Institute of Engineering under Tribhuvan University and handed over to Nepal Oil Corporation.
The report outlines a fully automated fuel depot with level three automation and construction standards aligned with internationally accepted API and ISD norms. It includes long term planning for storage tanks, hydrant systems, fire safety arrangements, and related administrative and residential infrastructure keeping future aviation demand in view.
Nepal aims to develop this relocation and construction activity as a bilateral energy and fuel cooperation project. Officials present at the meeting said the Indian side responded that it would study and evaluate the proposal through the required process after Nepal requested either grant assistance or concessional financial support.
Fuel cooperation between the two countries has expanded rapidly in recent years. Since 2019 Nepal has been receiving diesel, and now petrol and kerosene, through cross border pipelines. The meeting indicated that both sides are preparing to take this model forward for aviation fuel and LPG as well.
The Nepali delegation has returned home. The government expects that India’s positive support will significantly strengthen aviation fuel security and improve long term fuel supply reliability in the Kathmandu Valley.
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