by Him Bista
Kathmandu – The relocation of Nepal Oil Corporation’s (NOC) aviation fuel depot from inside the Tribhuvan International Airport (TIA) has been delayed due to the Ministry of Culture, Tourism and Civil Aviation’s inaction. Despite a decision chaired by the Tourism Minister, the agreement between NOC and the Civil Aviation Authority of Nepal (CAAN) has yet to be finalized.
Preparations are underway to shift the existing depot from Sinamangal to the northeastern Guhyeshwari area. The current depot falls within the proposed taxiway under TIA’s master plan, violates international standards, and poses safety risks, prompting plans to relocate it.
According to international standards, there must be a 172.5-meter gap between the taxiway and the runway centerline. However, the existing depot is only 90 meters away.
The Cabinet had directed the relocation to a safer, more suitable location through its decision dated Shrawan 28, 2080 BS. A similar decision was made earlier in Magh 2074 BS.
Rent Waiver Requires Ministry Approval
The CAAN has proposed a rent waiver for the construction period. According to Clause 48 (1)(j) of the Airport Service Charge Regulations 2078 BS, ministry approval is required to grant such waivers.
In its 429th board meeting, chaired by the Tourism Minister and CAAN Chairperson Badri Prasad Pandey, the Authority decided to exempt NOC from rent during the depot’s construction and formally submitted a proposal to the ministry. However, more than two months have passed without any decision.
As the Ministry questioned the delay in the agreement, tensions flared between officials. Ram Krishna Lamichhane, Joint Secretary and spokesperson for the Ministry, clarified that the Ministry’s role in the relocation is minimal.
He said the Ministry had recently held discussions with representatives from the Guthi Sansthan and NOC to facilitate coordination. “We are working to coordinate efforts, and a decision on the rent waiver will be made soon,” he added.
CAA Refutes Allegations, Calls Them Misleading
CAAN Spokesperson Gyanendra Bhul stated that ministry approval is required for the rent waiver, and a formal request has already been sent. “Apart from this pending approval, there’s no reason from our side for the delay. However, NOC is falsely blaming the Authority in the media,” he said.
A draft agreement has already been prepared, including a clause exempting rent payment for the 32 ropani of land currently owned by NOC at the existing site.
On Falgun 2, 2081 BS, CAAN decided to send a letter to the Ministry requesting rent exemption for the construction period of the proposed Guhyeshwari site.
Despite the Ministry’s inaction, NOC has publicly accused CAAN of delaying the land handover. Meanwhile, land-leveling work is underway at the proposed site. Once completed, the final area will be measured and included in the agreement.
Currently, NOC owns 32 ropani at the Sinamangal depot, with the remaining land leased from CAAN. The Authority has decided not to charge rent for the owned land and to waive rent for the leased portion during construction.
Spokesperson Bhul criticized NOC’s accusations, stating, “We have provided the necessary land, but NOC is making misleading claims. The delay lies with the Ministry’s decision.”
NOC Insists on Land Valuation
NOC spokesperson Manoj Kumar Thakur confirmed that the delay is due to the lack of a land agreement. He emphasized that the proposed Guhyeshwari site should be valued based on the high value of the current 32 ropani plot.
“We have been assured that discussions will be held soon to move the process forward,” he said.
Tensions Between Ministry and Authority
Following NOC’s allegations that CAAN had delayed land availability, the Ministry demanded clarification. In response, CAAN cited the Ministry’s indecision on rent waiver as the cause. Ministry officials were reportedly upset by this response, even threatening clarification requests to the CAAN staff involved.
Sources say CAAN staff defended their position by citing the board’s formal decisions and the Ministry’s own delay in action.
NOC’s Interest in Land Value Questioned
CAAN officials believe NOC is trying to benefit from the commercial value of the Sinamangal land, repeatedly asserting that the new Guhyeshwari site should be valued on par with the current one. Spokesperson Thakur’s remarks echo this sentiment.
However, CAAN argues that land within the airport premises cannot be used for commercial purposes and thus has no comparative market value.
“There’s no possibility of building a commercial complex inside the airport. All such land holds the same operational value,” CAAN officials stated.
They accused NOC of spreading misinformation, even though it is aware the Ministry is responsible for the delay. CAAN has indicated its willingness to proceed with a conditional agreement allowing for reimbursement if rent exemption approval is granted later.
Spokesperson Bhul emphasized, “CAAN is a responsible institution. Claims that one government body is obstructing another are baseless. We’re committed to avoiding unnecessary infrastructure, but we are not blocking the depot relocation.”
Estimated Project Cost: Rs 6.54 Billion
NOC has estimated that the construction of the new aviation fuel depot at TIA will cost Rs 6.54 billion.
On Mangsir 5, 2080 BS, NOC assigned the preparation of the Detailed Project Report (DPR) to the Institute of Engineering, Pulchowk Campus. The consultancy submitted the DPR to NOC on Shrawan 8, 2081 BS, estimating the total cost at Rs 6.54 billion.
NOC plans to invite international bids by Bhadra 2081 BS, with construction scheduled to begin in Mangsir 2081 BS. The project is expected to be completed within two years, with operations beginning by Mangsir 2084 BS.
The new depot will be constructed on 50 ropani of land in the Guhyeshwari area, near the Nepal Army’s golf course. It will include five vertical storage tanks, each with a capacity of 3,000 kiloliters.
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