KATHMANDU, Jan 16: Due to security concerns, the Nepal Oil Corporation (NOC) plans to relocate the Sudurpaschim Provincial Depot in Dhangadhi. The corporation is preparing to relocate the depot with an investment of about Rs 3.5 billion.
The NOC is moving the depot, which was constructed in 1977 in Dhangadhi, Kailali, due to its age, proximity to a settlement, and weak storage capacity.
The depot currently spans one bigha and eight kathas of land. Locals have repeatedly pressured the NOC to relocate it due to its proximity to the settlement. Dhangadhi Municipality has also urged the corporation to move the depot.
After locals brought the issue to the attention of Minister for Industry, Commerce, and Supplies, Damodar Bhandari, he directed the corporation to relocate the depot. The NOC has decided to move the depot because its current location in the middle of the settlement poses a significant risk of damage in case of an accident.
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The NOC is relocating the depot to an area five kilometers east of Attariya Chowk in Godawari Municipality-8, Kailali, near the East-West Highway. The corporation has identified 20 bighas, 16 kathas, and 8 dhurs of land for the move and has written to the Ministry of Industry, Commerce, and Supplies to begin the land acquisition process under the Land Acquisition Act-2034 BS.
Pradeep Kumar Yadav, head of the storage capacity enhancement project, explained that the current storage capacity at the Dhangadhi depot fails to meet market demand. Additionally, the physical infrastructure is deteriorating, causing the depot to fall short of safety standards. As a result, the corporation is relocating it.
Yadav said, "We have identified the land and submitted the report to the ministry. Once the government acquires the land according to the Land Acquisition Act, we will proceed with the construction process."
In the past, the corporation encountered irregularities in land acquisition, but now, it is following the Land Acquisition Act and moving forward with the land purchase process through the District Administration Office. The current storage capacity of the Dhangadhi depot is 2,890 kiloliters.
The petrol storage capacity is 830 kiloliters, that for diesel is 1,590 kiloliters, that for kerosene is 70 kiloliters, and the water tank has a capacity of 400 kiloliters. The proposed relocated depot will have a storage capacity of 11,900 kiloliters.
The Sudurpaschim Provincial Office of the NOC has been supplying fuel to Darchula, Baitadi, Doti, Achham, and Kailali, including areas like Bajhang, Bajura, and Kanchanpur. After inspecting the depot, Industry, Commerce, and Supplies Minister Damodar Bhandari, Secretary Govinda Bahadur Karki, and NOC’s Executive Director Dr Chandika Prasad Bhatta, along with expert consultations, decided to relocate the depot.
Pradeep Kumar Yadav explained that the relocation aims to ensure a more organized fuel supply to the nine districts of Sudurpaschim. "The corporation will build a state-of-the-art depot," Yadav said. "We will follow all safety standards."
The NOC estimates the cost of relocating the depot to be around Rs 3 billion. Yadav noted that the NOC plans to lay the foundation in mid-April 2025 and complete construction by 2027. Although the NOC initially planned to purchase 22 bighas of land out of 74 bighas owned by the National Housing Company in the municipality’s wards 3 and 6 of the Reshamkatha area in Kanchanpur, local opposition prompted the search for a new site.
The NOC's Board of Directors and the Council of Ministers have decided on land acquisition. The committee, led by the Chief District Officers of the main districts, plans to purchase land according to the Land Acquisition Act, 2034 BS. While the land acquisition is in progress, Pradeep Pandey, an engineer from Kathmandu University, stated that the current depot does not meet international standards. He explained that the university's expert team is preparing a Detailed Project Report (DPR). "The current depot lacks safety standards," Pandey said. "Built 45 years ago for four tankers, the depot must be relocated as soon as possible."
