A <a href="https://www.nytimes.com/2025/07/28/business/nepal-electric-vehicles-china.html#:~:text=Over%20the%20past%20year%2C%20electric,including%20Norway%2C%20Singapore%20and%20Ethiopia.">New York Times report this week</a> on Nepal’s electric vehicle boom was widely shared. The world is finally taking notice of the country’s energy transition.&nbsp; But the success story also brings new problems. Nepal will soon be facing a crisis in managing the lithium-ion of battery-powered cars, scooters and three-wheelers. Then there are mobile phone batteries, heavy metals and rare earths. “It used to be just laptops and mobiles, so people didn’t care so much, but one electric car can mean up to 500kg of waste, it will be beyond our control once they start piling up,” warns Pankaj Panjiyar of <a href="https://dokorecyclers.com/">Doko Recyclers</a>, an electrical and electronic waste management company in Kathmandu. He adds: “We were on track to generate 3,500 tons of lithium battery waste a year after 2027, but given the <a href="https://nepalitimes.com/here-now/evs-hybrids-and-plug-ins">increased market of EVs</a> the actual figure will now be much bigger.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240411100420_bbef06f8a778f06fcd95f46764e9e5e280d8d0abb75563c7d7a0e5b1912caba8.jpg" data-media-id="editor_3" data-image-id="20240411100420_bbef06f8a778f06fcd95f46764e9e5e280d8d0abb75563c7d7a0e5b1912caba8" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="EV year 2081 Page 1 NT #1207"> <figcaption>With 76% of new car sales being fully battery-powered, Nepal is second only to Norway. Photo: SUMAN NEPALI</figcaption> </figure>  Besides lithium, there are also heavy metals such as cobalt, nickel, and manganese that can contaminate the air, soil, and water, as well as rare earths. Nepal imported nearly 1.9 million mobile phones in the past year, a 40% growth from the previous — and that was only through official channels. With 76% of new car sales<a href="https://nepalitimes.com/here-now/rev-your-car-and-charge-it-too?fbclid=IwY2xjawE-ds5leHRuA2FlbQIxMQABHRuXixJOm8QKgTPUuBka6dm6ifd_kyvOPOVrXxCcyZxLGhn5i3O9PPY3gw_aem_RE4gaV7GYb_AUUkkYkGsrw"> being fully battery-powered</a>, Nepal is second only to Norway. Lithium-ion battery waste from electric cars, mobile phones, toys, solar panels and the 9,000 telecommunication towers all over the country already makes up a sizeable chunk of electronic waste.&nbsp; Recycling lithium-ion batteries is possible but expensive, while the recovery rate of heavy metals, including gold, is at 95% or more. China is leading the game with more than half of the global recycling capacity of heavy metals at about 500,000 metric tons a year, much ahead of the United States and Europe. Nepal does not have recycling infrastructure for lithium-ion batteries. In fact, there is no recycling plant for lead-acid batteries either: the acid is usually just dumped while lead, other metals and plastic are extracted by the informal sector or sent to India. “Battery recycling is textbook engineering, it is not difficult, we should be able to do it ourselves,” energy economist Dipak Gyawali told a recent climate discussion. “But when there is no market, the standard law of political economy is that the state has to create one, that is how it happened in the US, the UK and China.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250801040832_149b8cdfa617b9d9ad8df9da39bb0795e87f2798a7317824cabfb5af7cef46c5.jpg" data-media-id="editor_5" data-image-id="20250801040832_149b8cdfa617b9d9ad8df9da39bb0795e87f2798a7317824cabfb5af7cef46c5" data-rendition-name="original" width="3791" height="2527" loading="lazy" alt="e-waste in Nepal"> <figcaption>Staff at Doko Recyclers in Kathmandu working on sorting electrical waste this week.</figcaption> </figure>  Doko Recyclers had tried to set up a recycling infrastructure for lithium-ion batteries, and had nearly got a Rs40 million investment from Singapore-based Total Environment Solutions (TES). But Nepal’s lack of e-waste policy and investment guidelines meant the company was not assured of a return on investment and pulled out. Nepal also does not have Extended Producer’s Responsibility (EPR), wherein manufacturers and distributors are responsible for disposal and pay for the <a href="https://archive.nepalitimes.com/article/nation/making-money-from-garbage-in-kathmandu,2055">recycling of the waste </a>generated by their product, including batteries. “It is only a matter of technology transfer when it comes to lithium-ion recycling, but it requires investment backed by government policies such as EPR,” explains Panjiyar. “But there must also be provisions for extracted raw materials like lithium. We don’t manufacture batteries in Nepal, so we have to export them. But who is going to pay for that?” Lithium, heavy metals and rare earths also draw much criticism for unethical mining and environmental cost. One ton of mined lithium emits nearly 15 tons of CO2. Lithium is either extracted from briny water or hard rock minerals, add is often associated with contamination of water as well as loss of water sources. Nickel and cobalt mining comes with massive ecological cost and labour exploitation.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250801040848_3b3fc49c554a1759f31becaca1c737a641c94ee7a0d964e5fa898b060f41dec1.jpg" data-media-id="editor_7" data-image-id="20250801040848_3b3fc49c554a1759f31becaca1c737a641c94ee7a0d964e5fa898b060f41dec1" data-rendition-name="original" width="5460" height="3640" loading="lazy" alt="e-waste in Nepal"> <figcaption>Repair and refurbishing of used electronic goods can help reduce e-waste. </figcaption> </figure>  Sodium-ion batteries which are a safer, cheaper and more sustainable alternative. Battery-powered transportation could also be just a stepping stone to green hydrogen fuel of the future. “If we are using these metals, at the very least deploy them for the benefit of the larger public, like by promoting electric buses,” says Shilshila Acharys of Avni Center for Sustainability which recycles plastic and other waste. “Ultimately, it comes down to our consumption patterns. It is much easier to use one less mobile phone or a car which wasn’t even necessary, than recycling.” <h2>What happens to your phone when it dies</h2> <a href="https://ewastemonitor.info/wp-content/uploads/2024/03/GEM_2024_18-03_web_page_per_page_web.pdf">Nepal generated 42,000 tons of e-waste</a> in 2024, up from just 13,000 ten years ago, according to a worldwide survey by Global E-waste Monitor. The figure for Nepal is projected to reach 69,000 tons in 2026.&nbsp; While this is modest compared to most other countries, the growth and lack of recycling facilities are worrying. Household appliances such as washing machines, refrigerators, cooking stoves and ovens still make up nearly half of <a href="https://nepalitimes.com/banner/what-will-nepal-do-with-its-e-waste">electrical and electronic waste in Nepal</a>, while phones, laptops, tablets, hard drives, routers and modems come next at 9%. Consumer electronics made up 17% of e-waste, followed by lighting equipment at 14%, screen and monitors at 8% and toys at 9%.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250801040832_c271890d0cacd31b7c4e244daef81fc612b62fb40d00500f60c35aec65822390.jpg" data-media-id="editor_10" data-image-id="20250801040832_c271890d0cacd31b7c4e244daef81fc612b62fb40d00500f60c35aec65822390" data-rendition-name="original" width="1267" height="649" loading="lazy" alt="E-waste in Nepal"> </figure>  “The nature of e-waste has changed in the last decade or so, we now have less CRT monitors and CFL bulbs but more devices, solar panels, optic fibre which actually has a negative recycling value and now EV batteries,” says Pankaj Panjiyar of the Doko Recyclers. The nature of e-waste is also guided by changing consumption patterns where people upgrade to newer gadgets every couple of years, not necessarily because they are at the end of their lives. The average lifespan for mobile phones in Nepal is only two years, four years for laptops, eight years for televisions and computers, and ten years for refrigerators and washing machines. Just last fiscal year, Nepal imported nearly 1.9 million smartphones worth Rs24 billion. “Businesses today, especially electronics, have exchange offers wherein customers can exchange even well-functioning goods for a newer version. By not using electronic goods to the end of their lives, we are creating a problem that wasn’t there to begin with,” says Shilshila Acharya of Avni Center for Sustainability. “<a href="https://nepalitimes.com/news/ev-year">Electronic use has increased dramatically</a>, but our e-waste management capacity remains the same.” When municipal governments have failed to even manage biodegradable waste, they have not even started thinking about e-waste. Which is why electronic and electrical waste is left to the informal sector. There are some 1,200 scrap dealers in Kathmandu and 20% of e-waste is thought to be recycled despite the lack of proper formal channels, and most of it ends up in India. This means limited extraction of plastic parts as well as metals such as aluminium and copper, but removal of precious and heavy elements is not yet carried out in Nepal. Liquid waste, such as acid from lead batteries, is disposed of in the dumping sites, poisoning ground water and rivers.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250801040844_ccc83c1133fc54567abc93abc87a97263b3b28f9edb58450c8804526d97aeda8.jpg" data-media-id="editor_12" data-image-id="20250801040844_ccc83c1133fc54567abc93abc87a97263b3b28f9edb58450c8804526d97aeda8" data-rendition-name="original" width="3936" height="2624" loading="lazy" alt="e-waste in Nepal"> <figcaption>Nepal doesn't have a proper recycling infrastructure for e-waste and cannot extract precious and heavy metals as of now.</figcaption> </figure>  There is also a small but growing market to refurbish used electronic goods led by the likes of Sabko Phone which buys second-hand smartphones and reconditioning them to an almost new cheaper device.&nbsp; “It was very difficult for us in the beginning to get people behind this campaign, but over the last couple of years, we have seen a change,” says Uttam Kafle of Sabko. “The fact that they are buying a refurbished phone today means they might buy a refurbished washing machine in future.” Fourteen percent of the 1.22 billion mobile phones sold in 2023 were refurbished — that translated to 190 million fewer new phones that year. Says Kafle: “If we can associate refurbishing and upcycling with environmental gain, we will go a long way.” Indeed, experts recommend reducing the consumption of electronic goods not required as the first step to managing waste, followed by repair, reuse, and upcycling. Recycling is often the last option, also because Nepal lacks proper infrastructure as well as a legal mechanism.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250801040832_9b96a8ba5e161633e6f1341da06d0fd53c8f17b12f3dc05c4d39fc0168ee01c2.jpg" data-media-id="editor_13" data-image-id="20250801040832_9b96a8ba5e161633e6f1341da06d0fd53c8f17b12f3dc05c4d39fc0168ee01c2" data-rendition-name="original" width="5879" height="3919" loading="lazy" alt="E-waste in Nepal"> <figcaption>Experts recommend reducing the consumption of unwanted electronic goods as the first step to better manage e-waste. </figcaption> </figure>  Nepal’s Solid Waste Management Act 2011 has no mention of e-waste. It has since been revised, but the document is making rounds of various ministers and is yet to be finalised. Even so, it does not have any guidelines on managing electrical and electronic waste, and has only defined the terminology. India has an Extended Producer’s Responsibility (EPR) as well as Battery Waste Management Rules 2022 which clearly outline the responsibilities of producers, recyclers, and refurbishers. “A national-level e-waste legislation with EPR is a must with provisions at municipalities such that there is a separate collection value chain, and such a policy should allow for recycling infrastructure,” says Panjiyar. “All of this should happen simultaneously and with public awareness about e-waste in Nepal.” EPR will also help remove unreliable players in the market, and in turn reduce the flow of unwanted goods. This is in line with calls to curb unchecked and uncontrolled consumption of goods as well as prioritising ethical and sustainable development. This has much relevance for the EV boom in Nepal. Of the 22,907 four-wheelers worth Rs50.88 billion that the country imported last fiscal year, 16,701 units valued at Rs41.23 billion were electric vehicles. Few of them were passenger buses, which are much more expensive than diesel ones of the same size. Until grid-to-motor technology, such as trolley and tram, are introduced, the <a href="https://nepalitimes.com/here-now/the-public-in-public-transport">government must subsidise electric buses</a> to make the best use of surplus hydroelectricity while cleaning up the air and reducing Nepal’s petroleum bill.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240315040324_95d6be14bc19ae56151d75be42d3d39d6cba00308b4159104bc6c6fe0292b39a.jpg" data-media-id="editor_15" data-image-id="20240315040324_95d6be14bc19ae56151d75be42d3d39d6cba00308b4159104bc6c6fe0292b39a" data-rendition-name="original" width="3500" height="2141" loading="lazy" alt="Poor cash-rich Nepal NT"> <figcaption>An electric bus and bicycle lane in Lalitpur. Photo: GOPEN RAI</figcaption> </figure>  After all, only so many individuals can afford private EVs, and even then, they do not nearly reduce emissions as much, but add to traffic. Large electric buses also mean fewer lithium-ion batteries per person. “Our EV adoption is both a success story and a disaster waiting to happen given all that battery waste we will be faced with soon. It is like by trying to solve one problem we have created another,” says Acharya. Uttam Kafle at Sabko Phone says the concept of responsible use and circular economy which involves reusing, repairing, refurbishing and recycling existing materials and products as long as possible, should be the way forward. “We must make the best use of electronics for the betterment of our lives, there are still places and people without much access to these goods. But their ethical use and management, especially at the end of their life, will help save us from a lot of future problems.” This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250307140328_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_19" data-image-id="20250307140328_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>  &nbsp;

Sonia Awale

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Waste not, want not

Sajha Yatayat formally inducted 40 new electric buses to its fleet and inaugurated Nepal’s biggest simultaneous charging station for them in Patan on Tuesday. The 1.1 MW charging station shows that Nepal’s energy transition to renewables is not just environmentally beneficial but also economically viable. The green buses seen on Kathmandu Valley routes are now fully green — running on hydroelectricity that Nepal itself produces and not on imported diesel. The 40 new e-buses are made by CHTC company in Nanjing and the entire fleet can now be charged at the new charging station. Kulman Ghising of the Nepal Electricity Authority was on hand at the inauguration and extolled the virtues of going electric, mainly that it is 33 times cheaper to run. However, the capital cost for an electric bus is much higher than diesel and the outlay has to be recovered over a decade of operation. Government tax subsidies for electric public transport would help.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240410040436_57e25a3338995639178d953009e76d39c8fb0fc42714042eda77bf286bf9d33b.jpg" data-media-id="editor_0" data-image-id="20240410040436_57e25a3338995639178d953009e76d39c8fb0fc42714042eda77bf286bf9d33b" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Sajha Yatayat charging depot NT 1"> <figcaption>Nepal Electricity Authority Managing Director Kulman Ghising. Photo: SUMAN NEPALI</figcaption> </figure>  “Focusing on public transport yields a much bigger impact on reducing emissions,” Ghising said. “While the number of private vehicles may be higher, public vehicles run all day.” Kathmandu’s air quality further plummeted this week with AQI reading 300 and higher. While wildfire smoke was mostly responsible for this instance, petrol and diesel emissions make Kathmandu one of the most polluted cities in the world.&nbsp; Replacing them with battery-operated vehicles would help clean up the air. &nbsp;Electric vehicles are already saving Nepal Rs20 million a day with reduced petroleum consumption. Further reduction in petroleum use by 60-70% would help reduce Nepal’s trade deficit with India.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240410040436_5b761590e2fadebfac56ced0c780b71035dc635d13c6ade5f863c050b9c072e9.jpg" data-media-id="editor_1" data-image-id="20240410040436_5b761590e2fadebfac56ced0c780b71035dc635d13c6ade5f863c050b9c072e9" data-rendition-name="original" width="1500" height="1063" loading="lazy" alt="Sajha Yatayat charging depot NT 1"> <figcaption>Minister for Physical Infrastructure and Transport Raghubir Mahaseth inaugurated the new charging station at Sajha Yataya. Photo: GOPEN RAI</figcaption> </figure>  Electric buses, however, are expensive up front even though they are cheaper to operate over time. Sajha bought the 40 buses with Rs3 billion investment from the government. “The government must promote financial packages as it is too expensive for private companies to go electric at a massive scale on their own,” said Sajha Yatayat chair Kanak Mani Dixit at Tuesday’s event. “Buses charge at night when there is an electricity surplus. We are blessed with &nbsp;renewable hydro, while most countries have coal-powered electricity.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240410040436_8d3cb73fd6bdc47e5a6f811120d3098ae28984ae687b965905cf7adc5abaf854.jpg" data-media-id="editor_2" data-image-id="20240410040436_8d3cb73fd6bdc47e5a6f811120d3098ae28984ae687b965905cf7adc5abaf854" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Sajha Yatayat charging depot NT 1"> <figcaption>Sajha Yatayat Chair Kanak Mani Dixit. Photo: GOPEN RAI</figcaption> </figure>  Night routes and implementation of digital travel cards for commuters would spur Kathmandu’s economy. Electric buses may need to be charged for one hour on longer trips, but solutions exist: a relay system for passengers to swap buses at charging points.&nbsp; The inaugural event also showcased a Sajha diesel bus that has been converted to electric. For the moment, the model is only a prototype, made for research and learning purposes.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240410040436_4c2680b476cc141815b0b2fb61202333d173211bac7512c72541c98be5c3bf89.jpg" data-media-id="editor_3" data-image-id="20240410040436_4c2680b476cc141815b0b2fb61202333d173211bac7512c72541c98be5c3bf89" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Sajha Yatayat charging depot NT 1"> <figcaption>A Sajha diesel bus that has been converted to electric. Photo: SUMAN NEPALI</figcaption> </figure>  “It is a lot more than just a straight engine swap -- we have also implemented a cooling system,” says engineer Janak Risal who workd on the conversion. “We ran simulations of digital models to see whether having the components in the back made the bus move around too much.” Sajha worked with the EU-supported SOLUTIONSplus which made prototypes of remodelled Safa-tempos for passengers and cargo. The building team and Sajha are holding a workshop on 25 April to discuss conversion, as well as the viability of manufacturing battery-powered cars in Nepal.

Vishad Raj Onta

Sajha’s green buses go greener

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b439c7e80680e0c95afjpeg.jpg" alt="" width="1280" height="854"/><figcaption>New Sajha buses as they get ready to depart from the CHTC factory in Nanjing. Photo: MUKUNDA SHAH.</figcaption></figure>Electric vehicles are making a splash in Nepal, <a href="https://www.nepalitimes.com/latest/e-vehicles-prepare-for-post-lockdown-boom/" target="_blank" rel="noopener noreferrer">sales have seen a spurt</a> in the past two years. But a lot more work needs to be done to make battery-powered transport a sustainable solution in the country.That was the message of the three-day discussion series, EV Chautari, jointly organised by the Nepal Automobile Dealers’ Association (NADA) and USAID Clean Air to coincide with NADA’s first ever EV-only car show this week in Kathmandu.EV sales worldwide are gaining momentum. In 2021, there were 16.5 million electric cars on the road, a tripling in just three years. Twenty percent of the vehicles sold in China last year were battery-driven.Nepal is also <a href="https://www.nepalitimes.com/latest/nepal-goes-electric-but-conditions-apply/" target="_blank" rel="noopener noreferrer">keeping up</a> with this global trend. In 2021, the government announced that it would shift from petrol fuelled light weight vehicles to electric vehicles entirely by the year 2031.  While the decision was deemed too ambitious by many at the time, in the context of Nepal, shifting to electric transport makes sense. And the market agrees.Driven by tax rebates, electric vehicles have seen a dramatic rise in popularity in Nepal market in the past few years. Last year, the import of lightweight electric four-wheelers saw a seven-fold increase. There is currently a six-month waiting list for bookings of some of the popular electric four-wheelers.Institutional consumers are also starting to make changes. Last week, Daraz, the biggest e-commerce site in Nepal, purchased electric scooters for deliveries within Kathmandu Valley. Earlier this year, Lalitpur Metropolitan City’s Quick Response Team also started using electric scooters for its patrols within the metropolis.The industry is taking note of the shift towards electric vehicles. At NADA’s first ever EV Expo this week show-cased 51 brands, including nine four-wheeler companies, one three-wheelers, and 16 two-wheelers, and by the end of the four-day exhibition, there had been more than 30,000 footfalls and more than 200 deals signed.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b469c7e80680e0c95b0jpeg.jpg" alt="" width="1500" height="1000"><figcaption>Photo: MUKUNDA SHAH</figcaption></figure>Read also: <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/">Nepal’s electric future is here</a>, Sonia AwaleGiven these rapid strides, it would not be unreasonable to assume that Nepal is smoothly moving towards electric transport. However, just as Nepal’s highways have many potholes, there are still many legislative, regulatory and technical pitfalls along the way.The biggest challenge currently facing EVs in Nepal is erratic government policy, both in terms of inconsistent <a href="https://www.nepalitimes.com/latest/why-nepal-needs-to-restore-ev-tax-subsidy/" target="_blank" rel="noopener noreferrer">tax rates for EVs</a> as well as lack of standards and protocols for EVs testing, monitoring and the conversion of ICE vehicles into electric vehicles. Furthermore, the lack of policies that support electrification of public transport is holding back investment in this important segment.In the past few years, the customs and taxes levied on electric vehicles have fluctuated wildly, leading to apprehensions from both dealers and buyers. Speaking at EV Chautari at the NADA EV Expo this week, Yamuna Shrestha, Managing Director of Cimex Pvt Ltd blamed unpredictable changes in tax policy as holding back sales.“In the past two years, the taxes have changed four times,” she told the meeting. “This has created confusion for the end user. For instance, a consumer buys an EV, then a month later the tax goes down, and suddenly the buyer has lost 20-22 lakhs.”Government policy doesn’t allow changes in prices of consumer goods of more than 10 per cent in a year, but the current fluctuation is creating much bigger changes in the final price of electric vehicles. Shrestha said an urgent priority should be consistent policy.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b499c7e80680e0c95b1jpeg.jpg" alt="" width="1500" height="1000"><figcaption>Kapil Siwakoti, Chairperson of the EV Committee of NADA and Deborah Kennedy, COO of FHI 360. Photos: BHUSHAN TULADHAR.</figcaption></figure>During the discussion, Sagar Gajurel, General Secretary at the Journalist Association for Automobiles and Mobility brought up the issue of EV testing, monitoring.“Right now, we are importing ready-made vehicles from abroad and selling them in Nepal. But before selling them, what we need to do is test how reliable the product is, and how it will support our current transport system, which is lacking,” he said. “As new technologies are introduced, the Department of Transport Management needs to work on monitoring capacity for the imported vehicles.”Ram Chandra Paudel, Technical Director at the Department of Transport Management states that the government is has drafted the long overdue National Transport Policy of 2078 to replace an existing one which came out more than two decades ago. Whether the new policy gives sufficient clarity on the standards and protocols for EV testing, monitoring and conversion of ICE vehicles into electric vehicles is to be seen.Another challenge facing the EV industry is technology adoption. According to Dipesh Paudel, EV Training Head at Sipradi Pvt Ltd, technicians need a lot of training and awareness in terms of technology adoption.“We need to build the competency of four to five hundred thousand local technicians who work on vehicle maintenance. A policy level solution is needed to address this gap,” he says.Similarly, customers need to be made aware of the workings of EVs in order to build trust toward the new technology. A common concern for the customers is range anxiety – whether their EV will have enough charge to get them through the day. This concern about endurance is related to the lack of charging infrastructure. Some steps are being taken by NEA and other private sector actors, but, but a lot more work needs to go into this to overcome the reluctance of customers used to petrol stations every step of the way along highways.Earlier this year, NEA launched its first charging station at Ratna Park in Kathmandu and has started a drive to open 51 charging stations across Nepal. According to Manoj Silwal, Deputy Managing Director of NEA, if anyone wants to set up a charging unit, his agency provides free installation of infrastructure for up to 200KVA.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b4c9c7e80680e0c95b2jpeg.jpg" alt="" width="4032" height="3024"><figcaption>(Right to left) Sonika Manandhar, Co-founder and CTO of Aloi Technologies, Sunil KC, CEO of NMB Bank, Kanak Mani Dixit, Chairman of Sajha Yatayat, Krishna Sapkota, Executive Director of Town Development Fund and Rajan Rayamajhi, Chairman of Thee Go at a session titled EV Chautari during the NADA EV expo last week.</figcaption></figure>Read also: <a href="https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/">An electric shock to Nepal’s energy future</a>, Ramesh KumarFurthermore, NEA has provided electricity at a low cost specifically for EV charging stations. The cost for charging EVs at peak time is around Rs8/hour and in off peak times, the cost is as low as approximately Rs 4/hr.Private companies like BYD, Hyundai, TheeGo, Sipradi and others have also set up charging points for their customers. However, the issue here is that these charging stations do not have standardised appliance outlets and only serve their specific vehicles.Ram Chandra Paudel of the Department of Transport Management says, “The government needs to work with the private sector for charging infrastructure that will be compatible at multiple places with multiple types of vehicles.”The need for infrastructure development for the EVs is not limited to charging stations only. <a href="https://www.nepalitimes.com/latest/nepal-backs-evs-to-boost-hydro-electricity-uptake/" target="_blank" rel="noopener noreferrer">Electricity transmission lines</a> and infrastructure also needs to be able to withstand the increased load that is inevitably going to accompany widespread vehicle charging.Current data shows that the market for EVs in the sphere of private four-wheelers has already taken off. However, in order to ensure that the future of transportation in Nepal is electric, the focus now needs to shift towards public transport and two-wheelers.Two-wheelers make up more than 79% of registered vehicles in Nepal. However, less than 1% of two-wheelers on the streets of Nepal are electric, whereas, worldwide, 42% of two-wheelers sold in 2021 were electric. The supply of electric two-wheelers is there.At the Expo itself, 16 of the stalls were occupied by two-wheeler companies while only 9 four-wheeler brands were present. But in order to generate demand, consumer confidence and trust needs to be built through awareness campaigns and infrastructure to support electric two-wheelers.The most important (and largely missing) piece of the puzzle is electrifying Nepal’s public transport network. This is where the biggest gains can be made both in terms of reducing air pollution (and therefore improving public health) and cutting fossil fuel consumption that has sent Nepal’s import bill sky high this year.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b509c7e80680e0c95b3jpeg.jpg" alt="" width="4032" height="2268"><figcaption>Umesh Shrestha with Deborah Kennedy, Kapil Siwakoti and Yamuna Shrestha of CIMEX and an executive committee member of NADA at the EV expo.</figcaption></figure>Electrification of public transport started a long time ago, with trolley buses in 1975 and the introduction of electric three-wheeler Safa Tempo 30 years ago. However, this early start has not resulted in a sustained growth.Worldwide, in 2021 44% of sales of buses were electric with China leading the way. However, in Nepal the number of electric buses on the roads is insignificant. Sundar Yatayat has a few e-buses operating in Kathmandu and Butwal-Bhairawa.Recently, Sajha Yatayat has added 3 electric buses to its fleet, and 37 more are on the way from the factory in Nanjing to the China-Nepal border.Five buses that were provide to Lumbini Development Trust by the Asian Development Trust three years ago finally started operations two days ago.Similarly, several e-microbuses provided by TheeGo are now running the Kathmandu-Sindhuli route, as well as ramp buses for Guna Airlines at Kathmandu airport.But the use of electric buses in Nepal does not extend beyond this. Bagmati province has recently decided to only allow registration of electric cars as taxis, but till date, only one EV has been registered.Neighbouring India has taken more concrete steps to electrify its public transport system. It has launched two phases of Faster Adoption and Manufacturing of Electric &amp; Hybrid Vehicles (FAME) initiatives with investments of over INR 100 billion to create demand for electric public vehicles and invest in charging infrastructure.It also recently announced plans to buy 50,000 electric buses worth $10 billion. Nepal also needs to learn from its northern and southern neighbours on having a policy to support electric public transportation and investing in it.While Nepal might not have a lot of capital to invest in public electric transport, a creative solution might be the use the billions of rupees already collected from the pollution tax of Rs1.50 per litre of petrol and diesel sold in the country in the past years, to support the EV ecosystem as a whole -- particularly public transport operators who want to invest in e-buses.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b539c7e80680e0c95b4jpeg.jpg" alt="" width="4032" height="3024"><figcaption>Crowd at OLA stall at the NADA EV show in Kathmandu.</figcaption></figure>Another solution would be to convert old internal combustion engine vehicles to battery power. Nepal has successfully experimented with vehicle conversion some 30 years ago when Vikram Tempo three wheelers were converted to electric Safa Tempo. A similar drive to convert old buses to electric could be a solution to pursue.However, in order to do so, <a href="https://www.nepalitimes.com/latest/new-nepal-budget-sparks-electric-comeback/" target="_blank" rel="noopener noreferrer">the government</a> need to first provide legal clarity on vehicle conversion, and secondly work on standards, testing and monitoring protocols for the conversion of the vehicles.There is no question that Nepal needs to swiftly decarbonise the transport sector to manage its energy, economy and environment. However, a lot of homework needs to be done by both the government and the private sector to accelerate this process.Last year, at the <a href="https://www.nepalitimes.com/editorial/good-cop-bad-cop/" target="_blank" rel="noopener noreferrer">COP 26 climate conference in Glasgow</a>, Prime Minister Deuba said, “Nepal remains firmly committed to the implementation of Paris Agreement. We have submitted an ambitious NDC that plans to decarbonize our economy in all sectors. Nepal aims to reach a net zero emission by 2045.”It is now high time we walk our talk.Shreesha Nankhwa is an environmentalist currently engaged with FHI 360 as a Social and Behaviour Change Communication Officer.

Potholes on the highway to Nepal’s EV future

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209209c7e80680e0b5524jpeg.jpg" alt="" width="1079" height="1119"/><figcaption>Sundar Yatayat electric bus</figcaption></figure>There has been a spurt in imports of electric vehicles in the past six months since the government restored tax rebates, but there has not been a similar increase in the much more important battery-operated public transport sectorNepal imported 1,113 electric cars, jeeps and vans between last July and December, 2021 – nearly five times more than the same period last fiscal year when 249 such 4-wheelers were imported.“Imports of electric vehicles increased as a direct result of the government’s revenue policy to discourage fossil fuel cars,” says Nawaraj Poudel of the Nepal Energy Vehicle Association (NEVA). However, there is a 50% cash margin threshold for diesel and petrol cars, but there is no such limit for electric vehicles, which has kept the prices of battery cars high.Still, since the excise and customs duties on electric vehicles were reduced, they were competitive compared to petroleum-based vehicles which have much higher taxes.From last July to December 2021, Rs3.24 billion worth of electric four-wheelers were imported, up from only Rs105.1 million during the same period last fiscal year.However, besides the high dealer margins on electric cars making them expensive, there is also a  shortage of battery vehicles because of global supply chain disruptions. This means many customers are on six month waiting lists to buy their electric vehicles.“It is not possible to buy electric vehicles off the shelf right now,” says Dhruva Bahadur Thapa of NADA (Nepal Automobile Dealers Association) "The shortage of chips has slowed vehicle production. And this has also affected India and Nepal.”Read also: <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/">Nepal's electric future is here</a>, Sonia AwaleAlthough consumers of private vehicles have been able to reap the benefits of the government's changes in tax policy, the same has not been true for public transport.Sundar Yatayat ordered 20 Chinese electric buses, but they have been stuck at the Birganj customs checkpoint for the last three weeks because of a dispute over how much they should be taxed.“The government has fixed only 1% customs on public electric vehicles, but they said we have to pay 13% VAT and 5% tax, so we are negotiating,” says Bhesh Bahadur Thapa of Sundar Yatayat. “Apart from the taxes, the number plate charge and other fees drive up the cost of electric buses which are already more expensive than diesel buses.”A diesel bus of the same size costs up to Rs4.5 million but the tax for an electric bus alone is as much, putting the price tag of Sundar’s Chinese buses at nearly Rs20 million each.“If the government scraps the road tax for electric buses, the cost will come down by Rs1.3 million,” says Thapa. “We will sell the buses to India if the government does not review its policy.”Read also: <a href="https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/">An electric shock to Nepal's energy future</a>, Ramesh KumarNepal levies high taxes on petroleum vehicles but has been providing special rebates for the import of electric vehicles. Before fiscal year 2020/2021, electric vehicles had an excise duty of 10% and customs duty was completely waived.But the then Finance Minister Yubaraj Khatiwada, increased the excise duty 80% from zero according to the capacity of the vehicles in the budget of 2020/2021.He also increased the customs duty from 10% to 40%. This brought the import of electric vehicles to almost zero. Khatiwada had argued that such a tax policy was introduced to increase revenue and curb the drain on foreign exchange in importing luxury electric SUVs.His tax policy was widely criticised as being contrary to the policy of the government, which was to shift towards renewable. However, Khatiwada stuck to his guns.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209239c7e80680e0b5525jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>It was Khatiwada’s successor Bishnu Poudel who once more slashed the excise duty on electric vehicles and reduced the customs duty by one-fourth. However, electric vehicles would still have to pay customs duty, depending on their battery capacity.Electric vehicles up to 100kW have to pay 10% customs duty, 15% customs duty has been levied on electric vehicles of 100 to 200 kilowatts and 40% on electric vehicles of 200 to 300 kilowatts.The main reason electric buses have not been able to compete with their petroleum counterparts is that there is hardly any difference in the taxes they pay. Although the excise duty, customs and other charges on petroleum private vehicles is more than 240%, private electric vehicles pay ten times less. This has encouraged consumers to buy private electric vehicles.But in the case of public transport, even petroleum buses enjoy special tax breaks. Moreover, the showroom price of electric buses is upward of Rs10 million. Although it may look like all electric vehicles enjoy similar concessions, there is no real rebate for electric buses.“Even when consuming electricity at night, they have to pay extra in the name of demand charge. No matter whom we talk to in the government regarding change in policies favoring electric buses, nothing happens,” rues Sundar Yayat’s Thapa.Read also: <a href="https://www.nepalitimes.com/latest/why-nepal-needs-to-restore-ev-tax-subsidy/">Why Nepal needs to restore EV tax subsidy</a>, Raunab Singh KhatriEnvironmentalist Bhusan Tuladhar, who is also with Sajha Yatayat, says the government's current policy on electric vehicles is positive but inadequate: “Private petroleum cars will be gradually replaced by electric vehicles. But it is more important to replace diesel-powered buses with electric ones. That should be our priority.”He argues that private investors will not invest more on electric buses if the current customs and other policies are not revised. "If we really want to promote electric public transport, we need to provide additional tax rebates and other facilities. Other countries, including India, have offered similar concessions,” he says. “Electric public transport will have a direct impact on public health by reducing vehicular emission and air pollution.”Bishwas Gauchan of Institute for Integrated Development Studies (IIDS) says that the existing policy of providing tax exemption on electric vehicles is itself lopsided. "Tax exemption should be for public vehicles, not private ones,” he says.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209269c7e80680e0b5526jpeg.jpg" alt="" width="1500" height="1061">Since big buses, taxis and two-wheelers are responsible for more of the carbon emissions as they travel more distances, they should be prioritised in government policies. “There is no need to rush tax exemptions for private electric vehicles to the detriment of the economy," says Gauchan.Tuladhar also agrees that two-wheelers which make up about 80% of vehicles in the country and a major emitter of poisonous carbon monoxide, should be prioritised. He argues that taxes and other benefits should be provided to electric two-wheelers to reduce pollution and carbon emission.According to the Economic Survey 2021, two-wheelers account for 79.3% of the 3.987 million vehicles registered by February 2021.The Delhi state government in India has introduced a policy that when delivery companies buy new vehicles, a certain percentage of them should be electric. "Even in Nepal, policies targeting electric two-wheelers need to be put forward. Additional concessions are needed to promote electric two wheelers," says Tuladhar.NEVA’s Nawaraj Poudel argues that due to the high prices, complex geographical location of Nepal and lack of charging stations, electric two-wheelers have not been able to compete with petroleum ones.Although imports of electric motorcycles and scooters have tripled since last year, this is far less than the number of petroleum two-wheelers. Around 300,000 new two-wheelers are added to the roads of Nepal every year.More than a dozen brands of electric two-wheelers are currently sold in Nepal. Sanjeev Shilpakar, director of E-Motors at Yoma which sells TailG two-wheelers, says that the new Rs10,000 road development fee has discouraged consumers."In addition to the road development fee, consumers still need to pay 40% tax under various names," he says.Another reason that electric two-wheelers have failed to gain traction in the market may also be attributed to their higher cost. The price of electric two-wheelers in Nepal is much higher than the international market since the dealers keep a higher margin.Shilpakar refutes this, saying that the transportation cost itself is higher and the bikes have to be modified to fit Nepal’s terrain. He adds, "Although the cost price of electric two-wheelers is higher than petroleum ones, the operating cost is definitely lower."Import of electric vehicles in the last five years:Fiscal year                          Electric four wheelers    Electric two wheelers2021/22 (6months)          1,103                                    1,9222020/2021                         249                                      2,3332019/2020                         575                                      3902018/2019                         4,745                                    2,0472017/2018                         5,239                                    1,004Source: Revenue DepartmentRead more:<a href="https://www.nepalitimes.com/latest/nepal-backs-evs-to-boost-hydro-electricity-uptake/">Nepal backs EVs to boost hydro-electrivity uptake</a>,  Nepali Times

Nepal goes electric, but conditions apply

<figure><a href="https://www.flickr.com/photos/26344495@N05/50981261653/in/photostream/"></a></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/6372051f9c7e80680e0b289cjpeg.jpg" alt="" width="2048" height="1363"/><figcaption>Photo: IVAN RADIC/FLICKR</figcaption>Nepalis with battery-operated vehicles can now install a separate household meter to charge their vehicles as part of a drive by the state-owned utility to boost consumption of <a href="https://www.nepalitimes.com/banner/power-politics/" target="_blank" rel="noopener noreferrer">surplus hydro-electricity</a> from the country’s new plants.Electric vehicle (EV) owners can also opt for a larger capacity meter if the approved load for domestic use is insufficient, and the regulator is also increasing the load limit for industries, and offering additional meters for tenants on multi-storey apartments.A Nepal Electricity Authority (NEA) board of directors meeting last week decided on a slew of measures to increase consumption of electricity. Nepal is now generating 500MW more than domestic demand, and this surplus is expected to grow during the monsoon.However, due to an <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" target="_blank" rel="noopener noreferrer">imbalance in distribution</a> the country has to import power from India for certain areas of the country, while it sells electricity to India from other parts.“We must increase the consumption of domestically produced electricity at home to reduce spillover and wastage. That is why we are taking steps to make sure Nepalis have better access to reliable and quality power,” says Nepal Electricity Authority (NEA) chief Kulman Ghising.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205229c7e80680e0b289djpeg.jpg" alt="" width="1500" height="1061"><figcaption></figcaption></figure>With the increase in popularity of <a href="https://www.nepalitimes.com/banner/fully-charged-and-ready-to-go/" target="_blank" rel="noopener noreferrer">electric vehicles</a> NEA is encouraging private companies to set up charging stations in parking lots and open spaces with the new electric meter offer. Local governments will work with the NEA to facilitate the necessary paperwork.Despite a pledge to be fully electric in its transportation sector by 2031, Nepal had yet to take a significant step or invest accordingly, even though last year it <a href="https://www.nepalitimes.com/latest/nepal-reduces-tax-on-electric-cars/" target="_blank" rel="noopener noreferrer">re-introduced a tax rebate</a> for battery-powered vehicles.After complaints that house-owners were overcharging tenants for power consumption, NEA has warned landlords that their mains will be cut if they do so. Further, it is now allowing tenants to set up their own electric meters. Those living in apartment blocks, multi-storey residential buildings and housing colonies will also be allowed to have their own meters.“Occupants of apartments can get electricity directly from the NEA with a separate meter, that way the tariff will be cheaper and the consumption will also increase,” explains Ghising, adding that factories within the same industrial complex will also be allowed separate meters.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205269c7e80680e0b289ejpeg.jpg" alt="" width="3242" height="1773"><figcaption></figcaption></figure>The new regulation has also streamlined the mechanism for consumers to settle their electricity bills. They can pay in installments, through mobile apps and even customers who have been blacklisted because of their dues can arrange to pay it back in up to 12 instalments.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/nepal-electricity-demand-soars/" target="_blank" rel="noopener noreferrer">The NEA</a> is also providing power feeds to refrigerated storage for dairy products, cooperatives-run cold storages and drinking water and irrigation projects operated by the government or communities.The new regulation has also increased the load limit for companies from 50kV to 100kV for which the NEA will supply power via its transformers. If the companies pass the mark, they need to buy the transformer themselves.

Nepal backs EVs to boost hydro-electricity uptake

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac079c7e80680e077f0ejpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Prime Minister K P Oli inaugurating the first electric bus service in 2018 after announcing 20% of vehicles in Nepal would be battery-powered by 2020. The government did not allow those electric buses to go into service, and has now reversed its tax policy favouring battery-operated vehicles. Photo: Bikram Rai</figcaption></figure>Developing countries are usually late-comers in adapting to advanced technologies, but new innovations like battery-powered cars give countries like Nepal the chance to leapfrog to clean and green energy.Nepal has been kept back by poor and limited education, low levels of industrialisation and bad governance. However, this actually puts the country in a position to catch up through the adoption of new technologies.Especially when it comes to energy and the environment, Nepal does not need to reinvent the wheel. It just has to build on past policies that have worked – like the community forestry program, manage hydropower to generate surplus electricity, and restore tax subsidies for electric vehicles.When Sajha Yatayat introduced <a href="https://en.setopati.com/market/132700">five new BYD electric buses </a>in 2018, there was great optimism that Nepal was on the right path. Prime Minister K P Oli himself inaugurated those buses by riding them into Singha Darbar, and announced that 20% of vehicles in country would be electric in two years time. Well, it is now 2020 and instead of promoting EVs, this year’s budget has withdrawn the tax breaks for battery-powered cars.Nepal needs to foster a new climate for investment in green technologies with a paradigm shift in reducing the technology gap. One such paradigm shift had been the tax concessions on electric vehicles, but Finance Minister Yuvaraj Khatiwada’s budget raised <a href="https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/">excise tax by 40% with another 60% of custom duty</a> and put a question mark on the government’s commitments to its own sustainability goals.There are two compelling reasons to support EV growth: controlling air pollution and cutting petroleum imports. <a href="https://www.nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking/">An estimated 35,000 people die annually</a> from pollution emitted by fuel-driven vehicles. Nearly <a href="https://oec.world/en/profile/country/npl">15% of Nepal’s total imports</a> is for petroleum making it Nepal’s number one item of import.According to <a href="https://gggi.org/site/assets/uploads/2020/02/GGGI_Nepal_Investment-Projects-for-Electric-Mobility_Final.pdf">Global Green Growth Institute</a>, proposed new 6.8GW of hydropower projects will give Nepal excess electricity supply in next few years. Electrifying the transportation sector will allow <a href="https://www.nepalitimes.com/latest/nepals-chance-to-green-its-budget/">proper utilisation of domestic resources</a>, and enable  new innovative business strategies for energy sufficiency.To benefit from both aspects, the government needs proactive subsidies to encourage the adoption of electric vehicles. This not only helps in low-cost access to electric vehicles, but also create the environment to <a href="https://gggi.org/site/assets/uploads/2020/02/GGGI_Nepal_Investment-Projects-for-Electric-Mobility_Final.pdf">build an electric mobility ecosystem</a> for sustainable growth.China provides a good example. Its economic development formula starts with local experimentation of reform initiatives, which then can be replicated at the national level.Back in 1998, China’s first phase of EV development actually happened on a small scale across 12 major cities.For the next 10 years, the focus was given to battery production and setting up of necessary infrastructure which then got integrated into the national plan. Subsequently, after 2008, <a href="https://www.researchgate.net/publication/321869464_Electric_mobility_and_the_quest_for_automobile_industry_upgrading_in_China">conventional fossil consuming motorcycles were banned</a> across 16 major cities, and government promoted preferential treatment and subsidies including purchase tax waiver, trade barrier removal and infrastructure subsidy that expanded pilot initiative from 12 to 88 major cities.Since then, <a href="https://thediplomat.com/2020/05/can-chinas-electric-car-industry-weather-the-covid-19-storm/">450 new EV manufacturers</a> have been registered in China, including giant  oligopolies like BYD which have taken the global lead in electric vehicles. For the past three decades, EV sales have seen an increasing trend in China and they are projected to reach <a href="https://www.chinadialogue.net/article/show/single/en/11405-Can-China-electrify-all-new-passenger-cars-by-2-3-">price parity with petrol</a> and diesel by 2030.The <a href="https://about.bnef.com/blog/battery-pack-prices-fall-as-market-ramps-up-with-market-average-at-156-kwh-in-2019/">87% drop</a> in battery prices worldwide between 2010 to 2019 will also reduce the price of electric vehicles and make them more competitive vis-à-vis fossil cars.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac0a9c7e80680e077f0fjpeg.jpg" alt="" width="1086" height="672">For Nepal, this means electric vehicles will gradually replace petrol and diesel vehicles whether we like it or not. It is better to stay ahead of the curve and actively promote battery-powered cars now so that Nepal gets an early-bird advantage from reduced imports, improved air quality and better public health.As the Saudi Arabian Oil Minister <a href="https://www.economist.com/leaders/2003/10/23/the-end-of-the-oil-age">Seikh Zaki Yamani once said: </a>‘The stone age did not end for the lack of stones, and the oil age will end long before the world runs out of oil.’ Despite the global importance of alternative energy, Finance Minister Khatiwada’s  argument that an increase in imports of electric vehicles would drain the economy does not hold much water. Being a one-time import, EVs replace up-front cost of petrol cars, but reduce the long-term running cost by cutting the use of <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/">imported fuel.</a>Similarly, the argument that only high-end vehicles were imported in large numbers fails to take into account that cheaper Indian and Chinese electric cars and e-scooters like <a href="https://www.nepalitimes.com/banner/electri-city-cars/">Niu and Terra Eco</a> had begun to replace petrol-powered scooters. Instead of raising taxes, Khatiwada should have should have been given incentives for <a href="https://english.khabarhub.com/2020/18/105016/#.Xurj2Xw2GrQ.twitter">entry-level or mid-range EVs</a> and electric buses which cater to local needs, reduce other costs and promotes sustainability.Germany subsidised solar power and China subsidised electric vehicles more because they made economic sense, than just because of their ecological benefits. Nepal should also embrace the benefits of electrifying the transportation sector for economic and health reasons, rather than try to convince Nepalis to reduce the country’s carbon footprint to save the planet.Raunab Singh Khatri is a graduate student in economics at the Yenching Academy of Peking University

Why Nepal needs to restore EV tax subsidy

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a369c9c7e80680e04831ajpeg.jpg" alt="" width="1400" height="933"/><figcaption>RENEWABLE TRANSPORT: Symbolic gestures like President Bidya Devi Bhandari using an electric limousine, and more practical tax breaks for EVs have won Nepal international praise for a proactive energy policy. However, reforms are still needed to encourage electric public transport. Pic: THE PRESIDENT’S OFFICE</figcaption></figure>Residents of Kathmandu by now know that they breathe some of the <a href="http://archive.nepalitimes.com/page/every-breath-you-take-air-pollution" target="_blank" rel="noopener">dirtiest air in the world</a>. But unlike elsewhere, that awareness has not created the public opinion pressure to <a href="https://www.nepalitimes.com/here-now/open-air/" target="_blank" rel="noopener">force politicians to act</a>.Up to 35,000 Nepalis lose their lives annually due to diseases caused by air pollution. One in every 10 people in Kathmandu suffers from chronic lung diseases like COPD, bronchitis and emphysema. The average life expectancy of Nepalis <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/air-pollution-decreases-life-span,3999" target="_blank" rel="noopener">is reduced</a> by over two and one-half years because of air pollution.“We have seen that electric public transportation <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/public-transport-is-equal-to-public-health,844" target="_blank" rel="noopener">can improve public health by reducing pollution</a>,” says Sajha Yatayat Executive Director Bhushan Tuladhar. “Recent advances in electric transport provide the solution. What is sorely lacking in Nepal is political will, long-term commitment and strategic planning for electric mobility.”Read also: <a href="https://www.nepalitimes.com/?p=25485&amp;preview=true" target="_blank" rel="noopener">Life in the time of tornados</a>, Ajaya DixitIndeed, Nepal’s policy makers no longer have an excuse to do nothing about air pollution: they can follow the example of China and India and announce a national campaign to switch to <a href="https://www.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener">electric public transport</a>.India is rolling out 7,000 electric buses this year. The Delhi Metro is now powered by solar energy and plans to go fully solar by 2021.All 16,000 public buses in Shenzhen are electric. China has replaced all its petrol two-wheelers with electric motorcycles and scooters.Global demand for electric vehicles is rising rapidly, and manufacturers are having a hard time meeting demand, mainly because of the shortage of lithium ion batteries. The sale of electric vehicles overtook fossil-fuel cars in Norway last month.Read also:<a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">Electri-City Cars</a>, Sikuma Rai<a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">20% electric by 2020</a>, Om Astha RaiHere in Nepal, <a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">electric cars</a> now make up 10% all of all new sales. The first 40 Hyundai Kona EV sold out as soon as they arrived, and the next batch of 40 are already booked. In fact, Hyundai launched Kona in Nepal before it did so in Australia and the US. The Korean car-maker listed Nepal as a top priority market in the Asia- Pacific because of tax breaks for electric vehicles here.“We were able to convince the manufacturers that Nepal was ready to go electric because of our hydropower potential and the tax difference between electric and non-electric vehicles that showed a strong government commitment,” explained Nirakar Shrestha of Laxmi InterContinental, which represents Hyundai in Nepal.While the retail price of petrol and diesel reaches up to 261% above the cost price, electric vehicles carry just a 10% tax on the purchase price.  Electric cars are exempt from road tax, which can be Rs30-50,000 per year for fossil-fuel cars. Nepal is the only country in the world with such a huge relative tax difference.Read also: <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener">From a fossil past to an electric future</a>, Om Astha Rai<a href="https://www.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener">Cleaner air with greener buses</a>, Bhushan Tuladhar<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a369f9c7e80680e04831bjpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>However, there are still challenges to overcome before electric vehicles gain greater public acceptance, including the lack of charging stations, undependable electricity supply, and inadequate parking lots. A fast-charge electric station costs a minimum of $30,000 and can charge only 25 vehicles a day. Establishing one requires a government subsidy as well as a regulator to permit the charging of different EV models.Kathmandu Valley alone has <a href="https://www.nepalitimes.com/banner/poisoning-the-air-we-breathe/" target="_blank" rel="noopener">750,000 motorcycles</a>, which are a major source of toxic gases like carbon monoxide and ozone. Introducing tax incentives for bikes and scooters similar to those for private cars could be a pivotal move. Also, at the moment there is no registration policy on electric two-wheelers, discouraging buyers.In October last year, Prime Minister KP Oli unveiled an <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">electric mobility action plan</a>, proposed to transform at least 20% of the fleet of public vehicles into battery-operated ones by 2020. Amidst much fanfare he inaugurated the first five Chinese, BYD electric buses inducted by Sajha Yatayat. President Bidya Devi Bhandari herself has a BYD electric limousine.Last year, <a href="https://www.nepalitimes.com/here-now/mayoral-airs/" target="_blank" rel="noopener">Kathmandu Valley’s 18 mayors gathered for a workshop</a> organised by ICIMOD to discuss an air pollution reduction strategy. Since then, beyond lip service little has been done to establish electric public transport and make emission tests for fossil vehicles more effective.Local and provincial governments have shown an interest in providing financial support to develop electric public transport, but the plans are sketchy and ad hoc. A case in point is the confusing and conflicting proposals for electric bus rapid transit, monorail and light rail transit along the Ring Road. The proposals are restricted to speeches and slogans, but nothing concrete has been done.One reason is the high investment cost of electric public transport, which requires government to step in with subsidies.Over the years, revenue from the Petroleum Tax has grown to a whopping Rs5.2 billion. Some of this could be invested in a clean-energy electric transportation strategy.The Seoul-based Global Green Growth Institute (<a href="http://gggi.org/" target="_blank" rel="noopener">GGGI</a>) has been helping the central government with just such a strategy on electric mobility, and to find potential investors. General Director Frank Rijsberman was in Kathmandu last week to sign an agreement to implement e-mobility in Nepal. GGGI is keen to help Nepal with its first purchase of 300 electric buses for cities across Nepal.  (See interview below)“Operating an electric transport fleet is more complex, requires higher initial investment and more infrastructure than traditional buses, but in the longer-term, renewable energy sources are not only ecologically but also economically viable,” said Rijsberman. “We believe that it is not only the right thing to do but also the best way of growing in the 21st century. In the coming years we hope to see a breakthrough and electric buses on the streets of Kathmandu.”Electric vehicles are now a necessity, not just an environmental statement. Neighbouring India and China have committed to manufacturing only electric automobiles by the year 2030. This means Nepal will be forced to go electric since most vehicle imports are from those two countries.Said Bhushan Tuladhar of Sajha Yatayat: “Like it or not, Nepal will have to go all electric in about a decade. So we may as well start planning for it. That way, the transition will be much smoother, efficient and advantageous.”<h2>Investing in renewables</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a36a29c7e80680e04831cjpeg.jpg" alt="" width="1400" height="799"><figcaption> </figcaption></figure>Frank Rijsberman of the Korea-based <a href="http://gggi.org/" target="_blank" rel="noopener">Global Green Growth Institute</a> was recently in town to sign an agreement with the government and Sajha Yatayat on electric mobility. Nepali Times asked him about the future of electric public transport globally and in Nepal.Nepali Times: Why is your Global Green Growth Institute so involved in electric mobility around the world?Frank Rijsberman: We are a young intergovernmental organisation set up in 2012 with 32 member countries and 20 more in the process of becoming members, like Nepal. We help governments plan green growth, a model of economic development that is both more environmentally sustainable and socially inclusive. In Nepal, we helped the government develop a national electric mobility strategy, and we have also helped members mobilise $1 billion in climate finance.We are also working to make cities greener by managing water, sanitation and solid waste. I met with Nepal’s minister of forests and environment and he asked us if we could start working on forests as our next priority. We have done similar work in Indonesia and Myanmar, and that is likely to be our next priority here.Do you see Asian countries moving towards renewable energy?It is challenging to switch from big investments in coal and nuclear energy, because all those investments have become stranded assets. China and India are making enormous progress in renewable energy. Many other Asian countries are a bit behind — Vietnam is still planning to build 25 new coal fire power plants. We are working with governments to introduce large-scale renewable energy sources. The private sector will invest only if the government has the right policy, so we work with governments for that.Read also: <a href="https://www.nepalitimes.com/here-now/from-playing-victim-to-proactive-leadership-on-climate/" target="_blank" rel="noopener">From playing victim to proactive leadership on climate</a>How can Nepal mitigate on carbon, while adapting to climate change?Adaptation is still very much the number one priority for Nepal but it must grow to middle-income status by 2030, without increasing emissions, by investing in renewable energy. This is now the cheapest form of energy and decentralised solar energy is a much easier way to reach remote communities that were very poorly served by a centralised grid.So I would call it adaptation with mitigation co-benefits. It may well be possible to trade those emissions with countries that should reduce more but cannot on their own. You can have mitigation measures too, but the first priority for countries like Nepal that rely on agriculture is to make sure that society is no longer vulnerable and is more resilient to climate change.Also, many governments still want growth. But the quality of growth really matters; it should be environmentally sustainable. It used to be the right thing to do, but being sustainable is also commercially attractive.What progress are other Asian countries making to become low-carbon economies?China has become a real leader in electric transport. Shenzhen is the first city in the world with an all-electric fleet of buses. Beijing has also taken big steps in curbing air pollution. India has also made considerable progress in renewable energy. The next big thing will be energy efficiency in buildings.What are the prospects for electric public transport in Nepal?We have done electric bus projects in a number of countries and while it is more expensive initially, and also for infrastructure like charging stations and batteries, its operational cost is much cheaper. We are helping the Nepal Government find interested investors, and hope to see a breakthrough in coming years with electric buses on the streets of Kathmandu.

Nepal’s electric transport future is here

https://youtu.be/-pr72QL_ScEAfter serving as a toy for the rich, for making an environmental statement, or be a hobby, <a href="http://archive.nepalitimes.com/article/nation/Be-smart-go-electric,3062" target="_blank" rel="noopener">electric cars</a> have suddenly become a necessity. As the global climate warms up and the world weans itself away from fossil fuels, there is suddenly a rush on battery-operated vehicles.In Nepal, the government deliberately refused to provide incentives to battery-operated vehicles for many years because it would reduce revenue, but two years ago, slashed taxes on electric vehicles and increased the taxes for diesel and petrol cars. Since then, electric car sales in Kathmandu have soared.Read also: <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/">From a fossil past to an electric future</a>, Om Astha RaiAt present there are over 500 electric cars, more than 1,500 battery two-wheelers and a few thousand electric three-wheelers on Nepal’s roads. But with Sajha and other bus companies poised to induct electric buses, and private owners showing a keen interest, <a href="http://archive.nepalitimes.com/blogs/kundadixit/2018/01/24/electric-cars-shock-fossil-industry/" target="_blank" rel="noopener">the electric car market is poised for growth</a>.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933499c7e80680e03df8ajpeg.jpg" alt="" width="327" height="327"/><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/6369334a9c7e80680e03df8bjpeg.jpg" alt="" width="2546" height="483">Agni Incorporated, which imports the popular Mahindra e2O, plans to convert its popular petrol KUV crossover to battery and bring it to Nepal early next year. With a 180 km range, the eKUV will cost Rs3,500,000 and be able to comfortably get to Pokhara with a fast charge along the way.Agni has already sold 400 two- and four-door e2O, and slashed prices on them from Rs3,100,000 to Rs 2,200,000 by reducing the range for city driving, and the model is selling well in Kathmandu and other metros.Continental Trading Enterprises introduced the electric version of its <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/The-electric-age,3419" target="_blank" rel="noopener">KIA Soul</a> two years ago and sales have picked up after the tax on similar petrol vehicles was hiked. Despite its boxy look and price, the e-Soul is doing well, and KIA is preparing to introduce the e-Niro crossover with a range of 380km next year.Read also: <a href="https://www.nepalitimes.com/editorial/climate-climax/">Climate Climax</a>, Editorial<a href="https://www.nepalitimes.com/opinion/decarbonise-now/">Decarbonise now</a>, Ajaya DixitChina’s BYD made high-profile launches of its e6s by having President Bidya Devi Bhandari, the National Planning Commission and the Nepal Electricity Authority ride around in them. But its main market is in buses, and earlier this month, <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">got the Prime Minister to launch two of its e-buses on trial for Sajha Yatayat</a>.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/6369334c9c7e80680e03df8cjpeg.jpg" alt="" width="640" height="245">“We would like to use our best technology, and share our know-how to serve the Nepali market and the next generation, we see possibilities for e-mobility here,” Liu Xueliang of BYD Asia-Pacific Auto Sales Division told Nepali Times. BYD hopes to establish a training school for electric vehicle engineers, and provide electric buses for airside conveyance at airports like Kathmandu, Bhairawa, Pokhara and elsewhere.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/6369334e9c7e80680e03df8djpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>The main challenge for the spread of e-vehicles has been the lack of <a href="https://www.nepalitimes.com/business/electric-car-service-centre/" target="_blank" rel="noopener">charging stations</a>. KIA has installed a fast-charger in Kurintar halfway to Pokhara, and hopes to install 12 more around the country. Mahindra is also planning to build charging stations in Naubise, Mugling, Bharatpur and Pokhara for inter-city drivers.“Actually most e2Os are used for city driving, so the lack of charging stations is just a psychological barrier. Still, we will need them when the longer range KUV starts selling here,” says Agni’s Cabinet Shrestha, who is working on universal chargers that will work with any type of car. BYD also plans to establish 50 fast and slow charging stations on main highways, says Prasidha Panday of the BYD distributor in Nepal, Cimex Group.https://www.youtube.com/watch?v=RuOYwGgs43MDriving my REVA is stress-free since the car is easy to drive, clean, I can park anywhere and there are no hassles about refuelling.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933519c7e80680e03df8ejpeg.jpg" alt="" width="540" height="720">Sudha BasnetDoctorhttps://www.youtube.com/watch?v=B7ZSHg8Xu0QSuhrid Ghimire at Continental agrees: “Till now, no one has ever complained about running out of charge, EV owners are smart and think ahead, but it is our responsibility to add charging stations.”Before buying the KIA Soul, I was aware it was a city car and it has low ground clearance. But I was more attracted by its plus points like low operating cost, air conditioning and no gear clutch. Being associated with research on air pollution in Kathmandu, I wanted to take the initiation towards being a part of the solution.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933539c7e80680e03df8fjpeg.jpg" alt="" width="960" height="960">Arnico PandayRegional Programme Manager Atmospher, ICIMODThe National Plan of Action for Electric Mobility that the Prime Minister unveiled this month has three priorities: setting up a new entity to promote EVs, a national program on infrastructure and market, and financial incentives. The Plan hopes to turn 20% of public buses into electric ones by 2020.The Nepal Electricity Authority is already putting up 20 charging stations around the country to encourage<a href="https://www.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener"> electric transportation</a>. For Bhusan Tuladhar of Sajha Yatayat, this is a great leap: “The introduction of the Action Plan means the government has taken ownership of e-mobility promotion.”Read also: <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">The cost of light</a>, Om Astha Rai<a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">20% electric by 2020</a>, Om Astha Rai<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933569c7e80680e03df90jpeg.jpg" alt="" width="1500" height="1061"><figcaption> </figcaption></figure>The other obstacle for e-mobility future is still taxes. Although customs duty on e-cars has been slashed to 10%, the tax on electric two-wheelers has been increased, and electric three-wheelers have been banned in some Tarai cities.The 50 paisa per litre that consumers pay as Petroleum Tax has now grown into a kitty of a billion rupees, and could be invested in clean energy public transport. Last year, Nepal imported Rs150 billion worth of petroleum products, nearly double of the value the previous year. The country’s strategy should be to reduce this fuel import bill by switching to EVs.Says Tuladhar: “I do not see electric cars taking over Nepal’s roads any time soon. Petrol and diesel vehicles will be around but we must make a start with electric public transport. It is good for public health because it will reduce pollution, and for the national economy.”https://www.youtube.com/watch?v=HD1TLWD4eLY<h2>E-scoots</h2>Arbinda Tuladhar, 60, has been using electric scooters to commute 16km one way from Swayambhu to Kathmandu airport. Being an electrical engineer, he has struggled with many brands of battery-powered two-wheelers but always found the torque inadequate.Finally, he has found one with enough oomph: the Japanese-made Terra Eco. “With this one, I don’t have to stop half-way up the incline on my daily commute.” Terra is one of several two-wheeler brands in Nepal that offers many advantages over petrol-powered ones. It started selling in Nepal in 2014, and has sold more than 1,000 units.Now, Chinese scooters brands like Bella and NIU have also opened showrooms and are tapping the greater awareness about the environment among Nepal’s price-conscious youth.Says Shyam Sapkota of Terra Motors Nepal: “We did a survey last year and found out that out of 1,800 respondents, most were senior citizens who wanted comfort and ease, and youths who wanted affordability.”Arbinda Tuladhar, for instance, spends Rs250 on average on electricity and maintenance, compared to Rs4,500 a month if his scooter was petrol. The upfront cost of electric scooters also range from Rs100,000 to Rs260,000, which is similar to the prices of petrol scooters. the pricetag could come down further if the government cut the 10% customs duty and 13% VAT, and since battery prices have gone down worldwide, the price of e-scooters will be even lower in future.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933599c7e80680e03df91jpeg.jpg" alt="" width="574" height="1024">The scooters provide up to 80-100km on a full charge, and can pull a pillion rider even on the uphill of White Gumba. They can be charged at home like mobile phones. Terra and Bella both plan to introduce more powerful scooters in 2019, as customers want fast charge and extended driving range. NIU is setting up a scooter charging station in Labim Mall.Electric scooter drivers in the past did not need a driving license nor did they have to register their vehicles, but the government has now made both mandatory. This dampened demand, but now it has picked up again. Competition is also growing, and Terra now offers free lifetime maintenance, while NIU will exchange your petrol scooter and minus it from the price of a brand new one.E-scooters are also spreading outside the Valley. Terra has dealers in Narayanghat, Butwal and Lahan, NIU has reached Pokhara, Itahari and Butwal, and Bella has 18 dealers across the country.

Electri-City Cars

It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

30 years after Baby Arun

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

The flower guy

It cannot be a coincidence that after pushing bills to constrict freedom of expression and allow greater <a href="https://nepalitimes.com/news/security-or-espionage">surveillance of citizens</a>, Nepal’s government is now tightening controls on civil society.
In a <a href="https://nepalitimes.com/opinion/guest-editorial/command-and-control">series of recent moves</a> journalists have been sued for contempt of court, imprisoned for YouTube videos, or ordered by courts to desist from investigating corrupt officials.
An amendment to the Print and Publications Act that would hand the power to shut online media to the Chief District Officer (CDO). Another draft Bill would allow a political appointee to head a new Media Council with the power to revoke a journalist’s license. The draft counter-intelligence Bill would let random officials to arbitrarily tap phones, read emails and trail citizens.
Now comes yet another draft Bill that would replace the <a href="https://archive.nepalitimes.com/news.php?id=10675">Social Welfare Council (SWC)</a> with direct government control over registration, regulation, and management of non-governmental organisations, nonprofits and charities. There are more than 54,000 NGOs, 200 international NGOs registered with the SWC.
The draft makes civil society organisations needlessly jump through hoops to carry out work that complements the government in the social sector. Critics say the Bill was drafted without any consultation with <a href="https://nepalitimes.com/opinion/comment/nepal-s-rights-groups-must-step-up-4r4z6ck4">civic groups</a>.
“This Bill’s content is questionable whether it intends to allow for civil society organisations in Nepal a free space to operate,” concludes Dr SP Kalaunee, Country Representative of BlinkNow Foundation and Chair of the Association of International NGOs in Nepal (AIN). “The draft seems oriented towards controling rather than facilitating the work of civil society organisations.”
The Bill will be open for feedback from the public, and integrates the National Directives Act (1961), Association Registration Act (1977), and the Social Welfare Act (1992) and proposes dissolving the SWC and replacing it with a new Social Welfare Department under the Ministry of Women, Children and Senior Citizens.
Non-government groups will now be required to get approval from the Registrar Office, the CDO or the provincial government depending on their area of operation. Those working across provinces will have to get permission from the federal government. &nbsp;
The government says the Bill is intended to vet organisations to see if they are engaged in espionage, violate national security, assist a foreign state, commit treason, cause strife between federal units, or incite communal violence.&nbsp;
CSOs working in Nepal have long called for legislation to better facilitate their work, minimise administrative and bureaucratic red tape which have posed operational challenges. But they are opposed to such drastic control.&nbsp;
Read also: <a href="https://nepalitimes.com/banner/the-crow-and-the-scarecrow">The crow and the scarecrow</a>, Om Astha Rai
The NGO Federation of Nepal also issued a statement this week calling the Bill ‘retrograde and cumbersome’. It added: ‘Most of its provisions are intended to further constrain and control civil society organisations rather than facilitate and strengthen them, and reduce the role of citizen participation … it is an attack on our civil liberties, inclusivity, and transparency, and curtails our <a href="https://archive.nepalitimes.com/news.php?id=5156">democratic values and constitutional rights</a>.’ &nbsp;
<a href="about:blank">Nepal’s graduation</a> from least-developed country status next year may mean less aid for Nepal, and higher interest rates on loans from multilateral creditors. The <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">closure of USAID </a>and reduction in bilateral grants means the work of INGOs will be even more vital – especially to meet its <a href="https://nepalitimes.com/here-now/target-2030-for-maternal-and-newborn-health">SDG targets by 2030</a>.&nbsp;
“We are competing with other countries at a time when the global aid environment is shrinking, so the support we receive is directly dependent on a conducive environment for INGOs to operate and function,” says Kalaunee. “INGOs follow regulations of the nations they operate in, they will not protest or wait around for governments to change their minds or policies.”
Social safety net
Since 1977, the work of non-governmental actors in Nepal has been regulated by the Social Service National Coordination Council (SSNCC) chaired by Queen Aishwarya.
After the <a href="https://nepalitimes.com/banner/one-moment-30-years-ago-today">1990 People’s Movement</a>, King Birendra set up the Social Welfare Council (SWC) as an autonomous body in 1992 through the Social Welfare Act. But since then the SWC has been dogged by controversy and allegations of corruption and extortion.
In 2018, the Commission for the Investigation of Abuse of Authority (CIAA) filed a Rs315 million corruption case against 14 individuals, including the Minister of Women, Children and Social Welfare and SWC chair Badri Prasad Neupane and other officials for violating public procurement laws to rent out three hectares of its property around Bhrikuti Mandap.
Civil society groups have for years called for reforms in the SWC, and a report was drawn up to restructure it before this Bill proposed its dissolution. INGOs in particular will now have to go through the Social Welfare Department and multiple ministries for permissions.
A particularly objectionable provision in the draft stipulates that NGOs must have a Board of Director made up almost entirely of secretaries of various ministries. The NGO Federation has urged the government to take a civil society-friendly approach and not tangle its work in red tape and control. It says the government has no option but to revise the bill in its current form.
“Civil society organisations need an open space to operate, and an autonomous body to oversee them,” says Kalaunee. “Non-government organisations support in the areas prioritised by the government but by definition they cannot be a part of government.”

Big, beautiful Bills

An average Nepali could live 3.3 years longer if air pollution is reduced to meet the World Health Organization (WHO) guideline, according the annual <a href="https://aqli.epic.uchicago.edu/">Air Quality Life Index</a> 2025 published this week. The annual average concentration of tiny suspended particles in the air (PM2.5) in Nepal in 2023 was 38.3 μg/m3, nearly eight times the WHO standard, and 10% higher than 2022. Thirty years ago, air pollution in Nepal was half the current levels. WHO says particulate concentration above 5μg/m3 &nbsp;is<a href="https://nepalitimes.com/here-now/what-is-invisible-is-more-dangerous"> hazardous to health</a>.&nbsp; The most <a href="https://nepalitimes.com/banner/why-is-the-air-in-bhaktapur-so-bad">polluted parts of Nepal</a> are along the Indian border in Rutahat, Mahottari, Dhanusha, Parsa and Bara districts in Madhes Povince where average life expectancy is reduced by as much as 5.3 years.&nbsp; People in Sarlahi, Siraha, Saptari, Morang, Sunsari, Rupandehi and Jhapa are also dying at least 4 years earlier. The Air Quality Index 2025 report which is published annually by the Energy Policy Institute at the University of Chicago, says the figure is relatively lower for Kathmandu and Lalitpur at 2.6 and 2.4 years. After the Madhes, Kosi and Lumbini Provinces are the most polluted — especially in towns along industrial corridors and near the border. Karnali Province was by far the cleanest, followed by Sudurpaschim. Read also: <a href="https://nepalitimes.com/here-now/epicentre-of-pollution">Epicentre of pollution</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279.jpg" data-media-id="editor_4" data-image-id="20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279" data-rendition-name="original" width="753" height="584" loading="lazy" alt="AQLI map"> <figcaption>Potential gain in life expectancy from permanently reducing PM2.5 from 2023 concentration to the WHO guideline.</figcaption> </figure>  Air pollution is now the leading external<a href="https://nepalitimes.com/editorial/cleaner-air-longer-lives-0z0okfeu"> threat to life expectancy in Nepal</a>, exceeding both tobacco and diet-related risks, which reduced average lifespans of Nepalis by 1.9 years and 1.3 years respectively. The Air Quality Management Action Plan for Kathmandu Valley introduced in 2017 had identified vehicular emissions, brick kilns, and construction as the most polluting. It adopted measures to strengthen air quality monitoring, develop emissions inventory, and conduct impact assessments. Other major sources of emissions in Nepal include <a href="https://nepalitimes.com/news/no-smoke-without-fire-p7vb9dcj">forest fires</a>, crop residue and garbage burning as well as transboundary pollution from India and Pakistan. The report says India is the world’s most polluted country with the particulate concentration in 2023 at 41 μg/m3, an average resident in India could live 3.5 years longer if pollution levels were brought down to meet the WHO guideline. Residents of New Delhi on average would live 8.2 years longer if they breathed clean air. South Asia has some of the world’s most polluted cities. On some winter days, Kathmandu records the worst air quality in the world. In 2023, PM2.5 concentrations in South Asia declined by 9.6% between 2021 and 2022 due to lockdowns during the peak of the Covid-19 pandemic. ‘After a dip in 2022, particulate pollution in South Asia increased by 2.8% in 2023 — though it remained 7% lower than in 2021,’ <a href="https://aqli.epic.uchicago.edu/report/annual-update-2025">states the report</a>. ‘In the region’s most polluted countries, particulate pollution’s impact on life expectancy is nearly twice that of childhood, and maternal malnutrition and more than five times that of unsafe water, sanitation and handwashing.’ Elsewhere, unprecedented wildfires caused particulate concentrations to rise to levels not seen since 2011 in the United States and since 1998 in Canada. China also registered a decline in air quality, an increase of 2.8% in particulate pollution in 2023 relative to 2022, the first in a decade since the start of its ‘War on Pollution’ in 2014.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47.jpg" data-media-id="editor_8" data-image-id="20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47" data-rendition-name="original" width="754" height="501" loading="lazy" alt="AQLI line graph"> <figcaption>Annual average PM2.5 concentration in Nepal from 1998-2023.</figcaption> </figure>  Globally, the PM2.5 concentration in 2023 was 1.5% higher than in 2022, and nearly 5 times the WHO guideline. If global particulate pollution were permanently reduced to meet this guideline, an average person around the world would gain 1.9 years of life, adding 15.1 billion total life years to the <a href="https://nepalitimes.com/opinion/the-future-is-older">global population</a>, the report adds. ‘Particulate pollution remained the greatest external threat to human life expectancy in 2023, with <a href="https://nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking">its impact comparable to smoking</a> and surpassing other major health risks,’ the report says. ‘Its toll on life expectancy is more than 4 times that of alcohol use, 5 times that of transport injuries or unsafe water, sanitation, and handwashing, and more than 6 times that of HIV/AIDS.’ The report also highlights the need for open data, and says that accessible air quality information has translated into reduced particulate concentrations and gains in life expectancy in the United States, China, and Poland. Besides data, the report says, investment in monitoring and other air quality management infrastructure must be matched by political will, ambitious policies, capacity building, and sustained enforcement.

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