Fuel vehicles cleared for EV conversion for the next three years

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KATHMANDU: The government has cleared the way for converting old engine vehicles into electric vehicles for the next three years.

The Cabinet meeting held on November 18 approved a temporary exemption that lifts restrictions in the Vehicle and Transport Management Act 2049.

Under the existing Act, vehicle owners cannot change the color, shape, engine, chassis, or seating layout without approval. Using Section 177 of the Act, the government has removed this barrier by issuing a notice in the Nepal Gazette, allowing fuel-system changes for a limited period.

A Cabinet notice states that vehicles switching to environmentally friendly or energy-efficient fuel systems will receive up to three years of exemption.

Krishnaraj Pantha, Chief (Joint Secretary) of the Infrastructure Construction and Transport Division, said the government made the arrangement by suspending the restrictive provision in Section 39. “For the next three years, any diesel or petrol vehicle can be converted into an EV without seeking separate approval,” he said.

He added that the original restriction will resume after the three-year period unless a new Act is introduced beforehand. The draft of the upcoming Act already includes a provision to allow fuel vehicles to be converted into EVs.

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