Expedite EV Conversion

The Cabinet decision on April 5 established a legal and procedural framework that allowed the conversion of Internal Combustion Engine (ICE) vehicles into Electric Vehicles (EVs). The ongoing Israel-US versus Iran war and the subsequent closure of the Strait of Hormuz have led to a global shortage of petroleum products, triggering an unprecedented increase in the prices of fossil fuels. Nepal, which imports all its oil from India, is also hit hard. In response to the crisis, the government has given a two-day public holiday in government offices, and it has been providing only half-filled LPG gas. The decision to convert ICE vehicles into EVs is a crucial step in promoting green energy and curbing air pollution, which has emerged as one of the most pressing public health challenges in Nepal. 

Rising fuel prices have placed an enormous burden on our economy, and once the fuel price increases, it triggers a chain reaction, leading to an increase in vehicle fares and daily consumable goods. Nepal has made a steady stride in the energy sector lately. At this time of crisis, many people have switched to induction stoves operated with electricity. Now more than 95 per cent of citizens have access to electricity. Nepal's installed capacity of power generation is around 4000 megawatts per day. Purchase of EVs has also risen lately. A gradual increase in electricity production has come as a boon in the time of fuel crisis. However, the public is disheartened as the government has not reduced customs on EV purchases, which contradicts the government's policy of promoting EVs.

A 16-year-old internal combustion engine (ICE) vehicle owned by Sajha Yatayat was successfully converted into an electric vehicle (EV) two years ago. This move aims to promote the use of domestic hydroelectricity, reduce environmental pollution and decrease the national trade deficit caused by the import of petroleum products. At a time when Nepal has been spending over Rs. 350 billion annually on petroleum products, governments bringing forward a policy to convert IEC vehicles to EVs is commendable. This has become a major development, as a clause in Section 39 of the Motor Vehicle and Transport Management Act (1992) had long prohibited any structural or engine modifications to vehicles. The initial installation cost for the conversion is high, but in the long run, switching to environmentally friendly, sustainable energy sources is cheap.

Before Sajha Yatayat buses converted into EVs two years and Bikram tempos turned into electric 'Safa Tempos' in 1999. This was considered one of the world’s successful large-scale transitions to electric public transport. Vehicle conversion to EVs is important from an environmental perspective as well, when the Air Quality Index (AQI) of Kathmandu is 122, unhealthy for sensitive people. Likewise, apart from monsoon months, the air quality index of Kathmandu and other major cities in the country is consistently unhealthy. 

Thus, when the country is grappling with air pollution and increasing fossil fuel crisis and price hikes, the government's framework has given much-needed relief. However, the conversion to a battery system is costly and requires major engineering changes. Hence, the government should focus on reducing conversion cost so that people can feel benefited in a real sense.