The Nepal Weekly 
May 6, 2025
During a joint session of the Federal Parliament on Friday, President Ram Chandra Paudel presented the government’s policy and programme for the upcoming fiscal year 2082/83. He said the government will make improvements to the roads in order to reduce the amount of road accidents.
The government is set to make public transport services accessible, safe and reliable in a manner that is environmentally friendly in coordination and collaboration between the three levels of government, the President announced stating “To reduce road accidents, awareness programmes will be conducted targeting passengers and the capacity of drivers will be developed and made responsible.”
The government intends to rapidly move toward the restoration of damaged bridges and projects by gradually constructing and upgrading road segments of strategic and commercial importance.
Moreover, modern infrastructure including tunnels and expressways, as well as the construction special bridges on national highways, will be prioritized by the government.
The government is planning to move forward by coordinating and collaborating between the three levels of government in the construction and operation of roads and bridges.
President Paudel mentioned that the management of roads and the construction of suspension bridges will facilitate transportation in remote areas where road facilities are not available.
The announcement also includes Euro 6 standard fossil fuel vehicle to make mandatory. That will contribute to reduce pollutions and emissions. But the vehicles users will have to pay a significantly high price in terms of purchasing of vehicles, fuels and maintenance. This statement has been a strong argument that vehicle importers are taking up.
It is worth mention that Metro, Monorail, Trolley Bus, BRT (Bus Rapid Transport) for specific cities including the Kathmandu Valley and some other routes are also talked when it comes to reduce fossil fuel consumption, clean environment and better public health.
Moreover, EVs for public transportation should be the first priority and all possible facilities on EVs for public transportation should be considered by the state policy.
Electric vehicles in Nepal has been a ‘common character’ these days. Number of privately owned EVs have been an easy choice for the users. The government sector also has purchased a significant number of SUVs and cars run by electricity. However, EVs for public transportation has been in a limited count. A large number of 11 to 16 seat van have been operated in Kathmandu – Bardibas, Kathmandu – Bidur, different routes within the Kathmandu Valley and some other routes out of the valley. The electric van importers are seeing ‘good business in near future to have as interest of transport entrepreneurs is growing. The electric buses run by Sajha Yatayat is running 40 units while Sundar Yatayat is operating only a few in Kathmandu and Bhairahawa – Butwal and adjoining cities.
When the state considers well planned and managed public transportation, benefits such as to reduce fossil fuel consumption, clean environment, better public health and consumption of electricity generated by clean technologies.
First of all, the public transportation entrepreneurs or new comers need to be well aware that the electric bus service can be a profit making business. What they must know are cost of energy, cost of maintenance and better performance are the good aspects of electric buses. Charging facilities even good for electric buses are available now and in process to install in a number of locations. This is also to be realised that the cost of electric bus at the initial phase is high but can be managed well.
To get it started at the soonest for electric vehicles for public transportation, the government sector must be first in the field to offer facilities and supports to private entrepreneurs. So as government should work out to support the initial cost of electric bus to make cheaper.
Following suggestions may be taken up for creating a better environment for private sector to operate EVs for public Transportation.
(1) The cost of duties, taxes on import and related costs may be refunded as a financing support to the entrepreneurs. Ceiling for a reasonable amount for such financial support may be instrumental.
(2) Government should manage to lower the rate of interest on loans for electric vehicles for public transportation. Subsidising the interest rate may be a big support to the entrepreneurs.
(3) Electric bus operators may be incetivized by providing support a fair amount on the basis of per kilometre run.
(4) Nepal Government should be ready to go with private sector on co-investment or Public Private Partnership where an appropriate ratio of investment on EVs for Public Transportation comes to be possible.
(5) Government can take an option to buy electric buses to be operated by private sector. That means there will be enough room for co-investment like opportunities for both parties.
(6) The government sector must be well equipped to evaluate and monitor the operations, repair, maintenance and well keeping of the EVs for public transportation.
For all such to create conducive environment, financial and technical supports the government expected to extend can be managed by utilising the Pollution Control Fund, the tax raised on use of every litre of petrol and diesel since so many years which has been swelled to around sixteen billion rupees so far. The fund has been unutilised till date.
Similarly, climate related global funds, multilateral and bilateral supports may be taken as resources for technical and financial supports for Nepal to promote electric vehicles for public transportation.
Moreover, electric public transportation should also consider on maintaining elegancy of users behaviour. The public transport operators will have to work out little more for this aspect to bring into effect. Likewise, apps support and electronic fare collection system can contribute to upgrade the image of electric public transportation which ultimately should be able to serve every class of society with equal and elegant service quality.
