Support or Doubt Among Business Leaders Over Government’s Halt on New Public Vehicle Registrations
Image source, Getty Images
The Department of Transport Management issued a circular on Thursday to all seven provinces, mandating a halt on registering new public vehicles. This move has sparked discussions around the government’s forthcoming plans and objectives.
The government’s decision not to register any new public vehicles, including electric ones, signals a significant shift in the transport sector, drawing keen interest from transport operators and industry experts alike.
Officials from several organizations related to the transport business have reported internal discussions regarding the potential impacts of the government’s decision.
Vijay Swar, former president of the National Transport Business Federation, expressed that the government’s initiative could be a first step toward improvement.
“We have been in continuous dialogue with the new government led by Balendra Shah regarding public transport reform. This decision likely stems from those talks, though it was not made directly with our consultation,” he said. “Regardless, we do not object to efforts aimed at positive change.”
Image source, BBC/ASHOK DAHAL
Sharad Chandra Paudel, former secretary and leader of the public transport reform task force formed four years ago, is closely watching the next steps following the government’s new decision.
“The current public vehicle registration system is inadequate. Halting it to move towards a new system is a positive step. However, if the old system is simply reinstated after 15, 20, or even a month, then it would be pointless,” he noted.
Officials from the department said a new proposal incorporating laws and standards will be forthcoming within a few months.
What Additional Details Does the Registration Halt Circular Include?
The department’s letter states that “the lack of scientific management in public transport has increased air pollution, traffic congestion, and commute difficulties,” prompting this decision.
It cites Section 24(3) of the Vehicle and Transport Management Act, 2049 (1992), which authorizes the department to order transport offices to halt registrations of vehicles when deemed necessary for public interest due to environmental pollution, traffic pressure, road conditions, and other related factors.
Until further notice, registrations for public vehicles, including electric ones, will be suspended as per this circular.
“The public transport sector is currently disorganized, facing traffic jams, pollution, and rising fuel costs. Therefore, the halt on new registrations is temporary, during which studies and reform plans will be developed,” said Maniram Bhusal, Director of the Department of Transport Management.
Government’s Plans
Image source, Department of Transport Management
The new government led by Balendra Shah, popularly known as ‘Balen’, is prioritizing comprehensive reforms in public transportation, according to Director Bhusal. Currently, Sunil Ramsal, a close ally of the Prime Minister, is leading the Ministry of Infrastructure Development.
“The key issue is how to make this sector more organized and safer,” Director Bhusal explained regarding the reason behind pausing registration of new public vehicles. “We are trying to study the necessary quantity and types of public vehicles required in various areas—small, medium, and large—to ensure that there’s no oversupply impacting the economy.”
There has been criticism that the government often makes decisions before conducting studies, as seen in this recent move to halt registrations.
Director Bhusal disagrees with this critique.
“The rapid increase in registrations of small three-wheeler vehicles like rickshaws at central and local levels could cause more disorder if not halted for a study. This is why such a decision was taken. The public transport sector as a whole is not halted,” he emphasized.
“Only registrations of new vehicles cleared by customs are halted; internal processes like registration transfers and others continue. This decision will not adversely impact the general public.”
Former Secretary Paudel recalled that the task force he led also recommended halting vehicle registrations and introducing new standards for public transportation.
“Currently, vehicles are registered in individual names and permits are obtained similarly. We had suggested moving toward a corporate company model. Transitioning the entire public transport system into a company structure would simplify regulation,” he said. “It’s still unclear which policies the current government plans to adopt. However, if the initiative is aimed at improvement, it should be supported with facilitation.”
Concerns and Worries
Image source, Bijay Gajmer/BBC
Operators are upset about the decision because it affects vehicles that have already completed or are about to complete customs procedures.
“They have usually taken loans from banks for these vehicles,” Swar from the Transport Business Federation said.
Former Secretary Paudel stated the government might reconsider regarding those vehicles in the registration process. However, the department’s circular instructs provinces and local bodies not to register electric vehicles either.
Concerns have risen among operators that some currently operating vehicles might become obsolete or noncompliant under new standards as the government undertakes full reforms of the public transport sector.
Swar expressed hope that decisions in this complex sector will involve private sector stakeholders.
“The government cannot just remove these vehicles but could do so by providing compensation,” he said.
Paudel also believes that it is not appropriate for all types of vehicles like buses, tempos, and rickshaws to operate indiscriminately on the same roads.
“Such diversity causes disorder and raises pollution. New standards may restrict these vehicles to specific locations or roads. Arrangements must be made accordingly.”
Director Bhusal urged people not to be doubtful of the government’s decision. “The aim is to make public transportation organized, safe, and free from congestion, so it should be viewed positively.”
How Long Will the Study Take?
Regarding the expected duration of the study, Director Bhusal said he could not specify an exact timeline.
“It may take several months, depending on the complexity of the study,” he stated.
He added that the government’s study will be comprehensive, covering route planning, safety aspects, vehicle types, suitability, and pollution standards.
