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Kathmandu University Department of Mechanical Engineering has collaborated with Alternate Energy Promotion Center/ Energy Sector Assistance Program for selecting appropriate model of metallic stove to be disseminated under subsidy program of Government of Nepal in high hill region of Nepal from the year 2007. After extensive test and verification KU-3 model was decided as the most appropriate model to be disseminated, and thus more than 5000 KU-3 model have already been installed in the last 3 years. ESAP has target to install additional number of 7000 of such units in other parts of country by March 2012. In this work, feedbacks from the users and site observations are used as basis for further modifications; the University is constantly moving ahead to come up with new version that could cater the current needs and demands as well. It has been found that the KU-3 model could be modified with following three options or their combination. 1. Based on economical consideration 2. Based on Water Sanitation and Hygiene (WASH) 3. Based on multipurpose use. For Economic consideration, the double base plate in the combustion chamber has been replaced by one and size has been optimized, for WASH point of view, the WAPIC model used in Bangladesh as Chulli system, designed by Environment and Public Health organization has been integrated with KU-3 model to ascertain its effectiveness. For Multipurpose point of view, back boiler has been attached for hot water supply. In all above modification process, national testing protocol has been adopted for testing its efficiency such as WBT at Kathmandu University. For WASH consideration, the water before and after pasteurization has been tested at water laboratory. The preliminary result shows that there is great scope for further modification of KU-3 model to disseminate it in several high hill regions of Nepal.