Electric vehicles (EVs) have become the talk of the town after fuel supply into the country was disrupted due to border blockade.
However, private sector involved in promotion of EVs feels that the government is not doing enough to promote such zero-emission vehicles. Government officials, however, refute the charges, saying that the government was committed to promoting EVs.
Government officials and people involved in EV business held discussions on different issues related to EVs, including legal aspect, at a roundtable organized by Nepal Republic Media on Wednesday.
(As told to Kuvera Chalise, Sujan Dhungana, Sagar Ghimire and Kriti Bhuju)
Allow us to operate throughout the country
Pramod Bhandari
Manager, Agni Energy
If the government really wants to promote electric vehicles (EVs), it must allow us to operate throughout the country without hindrance. We can only register EVs in Bagmati. We are not allowed to sell EVs in cities like Pokhara and Bhairahawa as Department of Transport Management (DoTM) does not register EVs in these cities. Earlier, I had sold Reva cars in Pokhara and Bhairahawa as well. But we had to take the cars back due to problem in ownership transfer. As every citizen has the right to use EVs, the government should take necessary policy decisions accordingly.
To promote EVs, I think the government should allow EVs in heritage sites and Lakeside of Pokhara, for example, after putting a ban on entry of vehicles running on fossil fuel in these places. Similarly, it should bring a policy to use electric taxis at airport. The government should also put hydropower generation in priority and make sure that energy used in the country is produced in Nepali itself. By doing this, the government can ensure that EVs get enough electricity for charging.
EVs are not becoming popular here mainly because of two reasons -- mileage and cost factor. EVs give less mileage compared to diesel or petrol vehicles. To increase mileage, we have to use high power batteries. But it will increase coast as we have to pay 10 percent excise duty on battery. If we get rebate on customs duty and excise duty on batteries and spare parts, we can assemble EVs in Nepal.
Embracing EVs for Sustainable Future
We have been working to promote EVs in Nepal since 2001. I urge the government to replace 'safa tempo' by 'electric vehicles' in its policies and regulations as such documents ensure facilities only to 'safa tempo'
Devi Prasad Bhandari
Ministry of Science, Technology and Environment (MoSTE)
In a bid to support and promote electric vehicles, Ministry of Science, Technology and Environment (MoSTE) arranged soft loan from the Danish government in 2000 to buy 48 EVs and build two charging stations. This support was a part of our clean transportation initiatives and it was expected to encourage people to shift to EVs. Unfortunately, it didn’t happen because of various reasons. One of the reasons, according to the stakeholders, is the lack of sufficient electricity to charge EVs. People, who bought EVs in 2000 under soft loans, expressed inability to pay loan amount citing various reasons. To help them, we waived off interest accumulated since 2003.
The government as well as general public has realized the importance of EVs because of the ongoing blockade. To promote electric vehicles, our ministry on November 25 tabled a proposal in the cabinet to heavily reduce taxes on import of electric vehicles including the excise duty and customs duty. The proposal is awaiting decision from the cabinet.
Promoting electric vehicles and protecting environment are our major responsibilities. We are keeping these two issues in our priority. Similarly, there is a provision for tax waiver on import of battery used in electric vehicles on the recommendations of MoSTE. Meanwhile, we have also been urging the private sector for proper disposal of used batteries as they are hazardous waste.
Nabin Pokharel
Department of Transport Management
The department has been providing permits to automobiles, including EVs, based on various standards including emission, TA and CAP. We introduced Environment-friendly Vehicles and Transport Policy in 2014. Now, stakeholders should come forward and help the government for implementation of this policy. I have not seen that happen.
The policy envisions increasing share of EVs to 20 percent of total vehicles by 2020. Similarly, the policy says the government will provide land to build charging stations, provide customs wavier facilities, and help in conversion of vehicles running on fossil fuel to EVs. We have already made three committees for implementation of the policy. Unfortunately, they failed to work as per our expectations.
The department is committed to provide route permit to EVs. Except e-rickshaw, we have not withheld permit of any EV. There are some problems with e-rickshaws. There was some problem in Chitwan around two months ago when the local administration decided to replace manual rickshaws with electronic rickshaws. But our law says drivers of electric rickshaws should have driving license issued by transport management offices. But many rickshaw drivers do not have license. Similarly, only authorized dealers are allowed to import and sell electric rickshaws. These problems have to be addressed first.
Though emission test and standards are not required for EVs, we have to regulate these vehicles due to safety reasons. We have drafted a working procedure for that. I would like to make it clear that our department has not withheld permission or import of EVs.
I think it is high time private sector body like Nepal Automobile Dealers Association (NADA) and other stakeholders worked to promote use of EVs.
Umesh Shrestha
President, Electric Vehicles’ Association of Nepal (EVAN)
The major problem is that the government does not have long-term vision for the development of transportation sector. I think the government should encourage use of EVs for both private and public use. Similarly, it should, at least, adopt hybrid retrofitting system for big public buses. The technology to convert diesel or petrol vehicles into electric has already come to Nepal. But nothing has been done to promote this technology. Though the government has announced to convert 25 percent of vehicles running on fossil fuel into electric vehicles by 2020, nothing has been done in this direction so far.
Officials of both MoPIT and MoSTE all reluctant to address demand of traders involved in EV business. For example, we had applied for route permits for electrical tempos and micro buses four months ago. But we are yet to receive route permits.
I think the need of the hour is to calculate financial and environmental benefit of EVs in domestic transportation sector and take appropriate decisions accordingly. Thegovernment should not put EVs and vehicles running on fossil fuel in the same basket. It should not clamp similar customs duty on spare parts of EVs and vehicles consuming fossil fuel.
If the government wants to promote EVs, it should immediately reduce 10 percent customs duty imposed on batteries used by EVs. EV industry will collapse by 2020 if needful policy decisions are not taken now.
Bharat Poudel
Managing Director, Clean Energy Nepal
We all know that Nepal is using billions of rupees annually to import fossil fuel and vehicles. Data of Fiscal Year 2014/15 shows that the country imported vehicles worth Rs 49 billion and petroleum products worth Rs 112 million. Some people are against promoting EVs because they think EVs consume more electricity. This is not true. We have around 4,000 electric rickshaws, 200 electric cars, 700 tempos and 2,000 bicycles running in the market. These vehicles consume only around 4 MW of electricity annually. As per our calculation, only 400 MW of electricity would be consumed if all two million vehicles running in the country were to consume electricity. In monetary terms, it is much lower than fossil fuel consumed in the transportation sector.
Government policies are flawed and they do not promote EVs. The government does not impose any tax on import of electric rickshaws, but levies 55 percent tax on its spare parts. Such policies won’t help in the growth of EV industry.
Shankar Prasad Pokharel
President, Safa Tempo Charging Station Association
Though we are working hard to promote EVs, traffic police asks ‘safa tempos’ to undergo pollution test. They ask ‘safa tempo’ drivers to show green sticker and exhaust pipe. Traffic police personnel either do not know ‘safa tempo’ is a green vehicle or are unwilling to recognize it as a green vehicle. It is very difficult to get route permits for EVs. We had applied to Department of Transport Management (DoTM) for route permits long ago. W are yet to get permits.
The government’s decision of introduce micro bus for public transport had threatened the existence of safa tempos. Though things have changed a bit, many people still prefer micro buses over tempos. However, the ongoing fuel crisis has made public realize the importance of EVs. But I am sure people will switch to micro buses once fuel availability becomes normal.
Two truckloads of batteries needed for ‘safa tempos’ are stuck at Kolkata because of border disruptions. We got approval for re-routing only after lobbying for about a month. If these batteries do not reach Kathmandu in time, it will affect operation of ‘safe tempos’.
The government should also support us to import lithium-ion batteries instead of lead-acid batteries by providing rebate on customs duty and excise duty.
Achyut Shiwakoti
Department of Customs
Department of Customs has not stopped import of any electric vehicles. Though transport ministry had written to us to bar import of e-rickshaw some time ago, it has already been lifted now. EVs were getting incentives and tax waivers even before the ongoing crisis began. Firms assembling electric vehicles do not need to pay customs duty on import of the chassis, battery, motor, engine and charger. Safa tempos are also getting tax benefit. Some are saying that even the 10 percent customs duty imposed on batteries used in EVs is high. Batteries imported for EVs are already cheaper compared to those imported for other purpose.
Ganga Bahadur Thapa
Chairman, National Economic Concern Society (NECS), Nepal
We have been advocating for promotion of EVs since long as it helps to bring fuel import bill down. Over dependency on petroleum products is making our economy weak as major chunk of export earning goes to finance fuel imports. It is high time we explored options to bring consumption of fossil fuel down. We can do that by promoting EVs. We have been asking the government to develop electricity-based transport system in urban area to minimize air pollution.
Though the government has brought Vehicle and Transport Policy 2014 to encourage traders involved in business of EVs, it has failed to implement the policy. Instead of implementing the policy, stakeholders are involved in blame game. We have found that Ministry of Physical Infrastructure and Transport (MoPIT) itself is not interested to implement the policy. The ministry had assured us last year that it would form a committee to implement this policy. But the committee has yet to be formed. Not only MoPIT, senior officials of Ministry of Science Technology and Environment (MoSTE) are also reluctant to implement the policy and encourage EVs. We have heard that the government is limiting taxes on EVs to 10 percent. I don’t think the government will take decision to this effect very soon.
_20230506072433.jpg)
