Nepal’s First Podway Moves Forward: Biratnagar Pilot Enters DPR Stage

Kathmandu, October 5, 2026

Nepal’s First Podway Takes a Major Step Forward

Nepal’s first podway project to move through the formal development process is advancing in Biratnagar, where Kathmandu Podway Company plans an approximately 7-km pilot route connecting Rani with Biratnagar Bus Park to introduce a new elevated transport system aimed at improving mobility while reducing pressure on existing roads. The project, being developed with the Koshi Province Investment Authority under a public-private partnership framework, is estimated to require around Rs 600 Crore for its first phase, with the company now moving into the Detailed Project Report and feasibility-study stage.

Agreement Signed for the Project

Kathmandu Podway Company and the Koshi Province Investment Authority signed a formal agreement in August 2026 for the preparation of the project's Detailed Project Report and feasibility study.

The agreement was signed by Koshi Province Investment Authority CEO Saroj Koirala and Kathmandu Podway Company Vice President Nil Bhattarai.

The first phase will focus on the corridor between the Rani area near the Nepal–India border and Biratnagar's main bus park.

Rs 600 Crore Pilot Project

Kathmandu Podway estimates that the approximately 7-km first phase will cost around Rs 6 billion, or Rs 600 Crore.

The company announced on October 2 that it had submitted the required 0.1% performance bank guarantee to the Koshi Province Investment Authority, clearing another procedural step toward preparation of the DPR.

Independent reporting says a performance guarantee of around Rs 60 Lakh has been deposited with the provincial government.

DPR Expected Within One Year

Kathmandu Podway says the Detailed Project Report will be submitted within one year, with construction expected to begin after the DPR process.

This is an important distinction because the project has not yet completed its DPR and physical construction has not yet begun.

The current stage involves detailed studies, planning and other preparations required before construction can move ahead.

Elevated Route Along Koshi Highway

The planned system will operate above the existing road rather than requiring an entirely separate ground-level transport corridor.

According to Kathmandu Podway, approval has been secured to use the median strip of the Koshi Highway for the elevated podway infrastructure.

The company says this approach is intended to introduce additional public transport capacity without significantly interfering with existing road traffic.

What Exactly Is a Podway?

A podway is an elevated transport system in which passenger pods travel along dedicated tracks above the ground.

Kathmandu Podway describes its planned system as an electric and automated form of public transportation designed to move passengers efficiently while using less ground-level space than conventional road infrastructure.

The company has been working to introduce the technology in Nepal for several years.

Long-Term Plan Reaches Bhedetar

Biratnagar's pilot route is intended to be only the beginning.

Kathmandu Podway says its longer-term vision is to extend the network toward Bhedetar in Dhankuta, creating a route of approximately 42 km.

According to reporting citing project officials, the broader Rani-to-Bhedetar system is estimated to require around Rs 65 billion, or Rs 6,500 Crore.

However, this larger corridor remains a long-term proposal, and its final cost, design and implementation will depend on future studies and approvals.

Why Biratnagar Was Chosen

Biratnagar is one of Nepal's major industrial and commercial centres and sits beside the important Rani–Jogbani border point with India.

Project officials believe an elevated transport system could provide another option for moving people through the busy corridor while limiting additional pressure on road space.

Officials have also suggested that a future extension toward Bhedetar could support tourism and improve connectivity between the Tarai and hill areas of Koshi Province.

Why It Is Being Called Nepal’s First

Podway projects have previously been discussed and proposed in several parts of Nepal, including Kathmandu Valley.

However, Koshi Province Investment Authority officials say the Biratnagar project is the first to complete the necessary process and advance toward the construction stage.

Kathmandu Podway itself currently lists no completed podway projects in Nepal, meaning the Biratnagar system should not yet be described as an operational podway.

What Happens Next?

The immediate next step will be completing the DPR and detailed feasibility work.

Kathmandu Podway has also announced plans to establish a project office in Biratnagar to coordinate the project locally.

Only after the necessary studies, designs, financing arrangements and approvals are completed will the project move into physical construction.

For now, the 7-km Rani–Biratnagar Bus Park corridor represents Nepal’s most advanced effort to turn years of discussion about podway transportation into actual infrastructure.