Kathmandu: The long-planned relocation of the Sinamangal aviation fuel depot at Tribhuvan International Airport (TIA) is facing delays due to unresolved land acquisition issues. Although the government had earlier decided to shift the Nepal Oil Corporation (NOC) depot citing security concerns, progress has stalled due to the Corporation’s inability to formally acquire the designated land from the Civil Aviation Authority of Nepal (CAAN).

At a press conference, Pradeep Kumar Yadav, Chief of the Sinamangal depot, said the relocation has been hampered by lack of land demarcation, pending ‘site clearance’, and unremoved structures at the proposed site in the Gauchar area. “Despite repeated attempts to coordinate with the Authority to separate the land’s four forts and finalize the land transfer, only the soil mound has been cleared so far. No tangible progress has been made in the last eight months,” he said.

The government’s decision to relocate the depot came after the Saurya Airlines crash last July highlighted safety risks posed by the current depot location. The new site, located within the Nepali Army Golf Course premises, is part of a larger master plan under the Air Transport Capacity Enhancement Project to modernize and secure airport infrastructure.

Although CAAN has allocated around 60 ropanis of land for the project, NOC reports continued difficulties in finalizing the land agreement. According to site engineer Man Bahadur Singh, land leveling is almost complete, but some trees and structures still need to be removed. Around 200 trees are estimated to be cut down to clear the area.

TIA General Manager Hansraj Pandey confirmed that the land transfer process has begun and that a proposal for tax exemption has been submitted to the Ministry of Culture, Tourism and Civil Aviation. A final decision on that is pending.

To prepare for the relocation, NOC signed an agreement last November with the Institute of Engineering Studies, Pulchowk Campus, to draft a detailed project proposal. While a preliminary report has already been submitted, the final report is expected by mid-Ashar. Based on early estimates, the relocation project will cost approximately Rs 7 billion.

Once land acquisition is complete, the Corporation plans to begin construction swiftly. The new depot will include eight vertical fuel storage tanks built to American Petroleum Institute (API) standards, as well as two water tanks for fire control.

The relocation is considered critical for meeting international aviation safety standards. Currently, the distance between TIA’s main runway and taxiway is only 90 meters, well below the required 172.5 meters. Relocating the depot—nearly 50 years old and currently housing 7,660 kiloliters of fuel—is necessary to comply with global norms and accommodate growing air traffic.

NOC, a government-owned entity, operates 10 aviation fuel depots and two refueling stations across Nepal. It procures fuel from India’s state-owned Indian Oil Corporation and manages fuel distribution nationwide, including in key cities like Biratnagar, Dhanusha, Pokhara, and Dhangadhi. Its total fuel storage capacity across all facilities stands at 60,384 kiloliters.