Standards Set for Converting Old Vehicles to Electric; Insights from Sajha Yatayat’s Experience
Photo source, SAJHA YATAYAT
Following a Council of Ministers decision to legalize conversion of diesel- and petrol-powered vehicles to electric, the Ministry of Physical Infrastructure and Transport is preparing the necessary standards, according to a ministry spokesperson.
“While conversions will be allowed, specific standards detailing which vehicles qualify and what modifications are permitted are essential. We will instruct the Transport Management Office accordingly,” said Ramhari Pokharel, the ministry spokesperson.
He added that since this is a process that requires compliance, the standards are not yet finalized.
Earlier interim legal provisions had also attempted to facilitate conversion of petroleum-fueled vehicles to electric, but with limited progress.
Pokharel stated expectations that the new Transport Management Act will formally address this matter.
Though efforts to convert old vehicles to electric have been undertaken several times in the past, practical implementation remained elusive. The recent Cabinet decision on Sunday to establish legal provisions for such conversions has revived public discussion on the issue.
Obstacles
Lawmaker Mahavir Pun, who has been advocating for years on this issue, accused transport sector businessmen of obstructing the implementation process.
“I have even urged the ministers to enact this provision. When I was a minister, I made efforts as well,” Pun said. “This matter has been raised for many years, but no one has managed to implement it. Rules are drafted, yet for various reasons, they get stalled.”
Pun also served as Education Minister in the government formed after the Generation Z movement.
Transport expert and representative of the Rastriya Swatantra Party, Ashish Gajurel, expressed confidence that the conversion process will proceed once legal hurdles are resolved.
“We want to electrify our vehicles, but without legal provisions, both businesses and the public have faced difficulties for a long time. Moreover, due to shortages of diesel and petrol in the country, this decision is essential,” he stated.
Gajurel noted that he continues to provide government advice on transport and infrastructure reforms based on his expertise.
“This decision is driven by three main reasons: first, reducing diesel and petrol consumption; second, increasing utilization of our own energy; and third, reducing pollution,” he added.
Converted Vehicles Remain in Garages
Experts report that, although some vehicles have been converted to electric, legal restrictions have prevented their use on roads.
“All vehicles in our country are imported. Current laws do not permit modifications to imported vehicles,” informed Loknath Bhusal, Director of the Transport Management Department.
Section 39 of the Transport Management Act, 2049, states that vehicle owners cannot modify the color, seating capacity, design, engine, or chassis without approval from the authorized officer, nor make changes beyond the manufacturer’s specifications.
According to Bhupendra Aryal, Chief Executive of Sajha Yatayat, their organization recently converted a 14-year-old bus to electric but has been unable to deploy it for lack of regulatory frameworks.
“The government’s decision will facilitate our progress in this area. Now direct implementation efforts will begin,” he said.
Founded by former minister and lawmaker Pun, the National Innovation Center has long focused on this issue.
“We converted a Nepal Army vehicle from combustion to electric and also tested it at the Innovation Center,” Pun stated, “but without formal policies, traffic authorities have not permitted them on roads.”
Bhusal revealed that a draft of a new act replacing the old Transport Management Act has been submitted to the ministry.
“The previous parliament did not pass this new act, but this time, it appears the provision will be included. Issues like concessions and tax exemptions will also be part of the budget. Once passed, it could come into effect by mid-September,” he said.
Which Vehicles Will Be Prioritized?
Photo source, Ministry of Physical Infrastructure and Transport
The decision primarily targets older vehicles, explained ministry spokesperson Pokharel.
“New vehicles don’t necessarily require this; many owners wouldn’t opt for conversion anyway. This is not mandatory but offers an option, focusing mainly on pollution reduction.”
Rastriya Swatantra Party lawmaker Gajurel said once legislation is in place, not only older vehicle owners but any interested party will have the option to convert their vehicles.
Sajha Yatayat’s experience includes an ongoing analysis of expenses and potential challenges involved in electrifying old vehicles.
“This shows that conversion is possible. Once legal barriers are removed, interested parties can convert and operate their vehicles,” he noted.
Question of Effectiveness
Lawmaker Pun believes large-scale conversions would yield significant benefits.
“The environment will be cleaner, and diesel and petrol usage will decline,” he said. “Domestic electricity production will increase, and reduced imports of new vehicles will help decrease trade deficits.”
“But just producing a handful won’t suffice. Only if established on a large industrial scale will it be beneficial.”
He stresses the need for government policies and regulations to create a foundation for entrepreneurs. “While battery manufacturing itself may not be feasible, assembling battery packs is achievable,” he explained.
Battery packs refer to modules made by connecting individual cells and housing them in cabinets.
Sajha Yatayat’s engineer team led the initiative to convert one of their buses to electric power.
“Battery imports seem inevitable,” said Aryal. “While initial revenue may arise from conversion duties, operating costs will be lower, allowing capital to be recovered.”
Aryal emphasized the need to simplify legal complexities around imports.
Lawmaker Gajurel expressed confidence that as much as possible, the materials required for electric conversions will be manufactured domestically.
“If batteries or other components are needed, they will be produced here. We are clear on this,” he stated.
Sajha Yatayat plans to develop older buses into hybrid models once the new laws come into force.
“Electric propulsion produces no emissions, making it environmentally friendly, and for long distances where charging stations are scarce, there remains the option to operate on fuel,” they added.
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