Supreme Court issues show-cause on tax rise on electric vehicles

The Supreme Court today issued a show-cause order against the government decision to raise the taxes on electric vehicles (EVs).
The government – through the budget for the current fiscal year 2020-21 – has increased the customs duty from 10 per cent to 80 per cent and excise duty from five per cent to 80 per cent despite its tall claims of promoting the clean energy and substitute the import of petroleum products that is the largest import of the country.
Due to the hike in the customs and excise duty, traders have stopped import of electric vehicles lately. A single bench of the Supreme Court Justice Ananda Mohan Bhattarai has issued a show-cause order showing concern on the tax hike in electric vehicles as a serious matter. Claiming that the rise in tax has made electric vehicles unaffordable to the general people, Jury Nepal – a non-government organisation – has filed a writ petition against the government move.
The provision – to raise tax on electric vehicles by discouraging the use of environment-friendly automobiles – has been not only against the government’s own policy to substitute the fossil-fuel vehicle by 2030, and also Prime Minister’s pledge to promote the clean energy through the use of electric vehicles.
The government move has also been criticised on the ground that it will hit the aspiration of making the country self-reliant in energy supply and reduce the ballooning trade deficit by substituting the import of fossil fuel.
However, finance minister Dr Yuba Raj Khatiwada has been defending his move – to increase taxes on electric vehicle against the government policy – claiming that the government is compelled to revoke the scheme to check misuse of the government package due to surge in imports of luxury electric cars.

Central bank directs BFIs to provide easy loans for EV charging stations

The central bank has directed banks and financial institutions (BFIs) to give priority in issuing loans to establish charging stations for the promotion of electric vehicles (EVs).
The central bank – issuing a directive to BFIs,, which has given priority in lending for charging stations for EVs as a priority area for disbursing loans in line with the government move to increase electricity generation and simultaneously increase the use of electric vehicles too – directed the BFIs to accord priority to providing loans for the construction of charging stations as hydropower is a renewable energy and will play a vital role in the public transport sector.
The government is aiming at increasing the volume of electric vehicles across the country by 30 per cent within the next 10 years. Meanwhile, Nepal Electricity Authority (NEA) has also started the process to construct 50 charging stations in Kathmandu valley and along major highways.
Earlier, Ministry of Energy, Water Resources and Irrigation had – on August 29 – also drafted guidelines to set up more than 200 EVs charging stations to prioritise EVs to maximise the use of electricity.
According to the ‘operational guideline of electric vehicle and establishment of charging stations’, the NEA will be responsible for giving approvals to set up charging stations, ensure uninterrupted power supply and monitor their security and leakage. “The power utility will also be responsible for determining service charge, testing and authenticating the charging stations.”

Electricity demand surges to record 1,338 MW

Though the government is planning to promote use of electric vehicles as well as electric stoves for cooking to increase consumption of electricity, Nepal Electricity Authority (NEA) has started facing a problem in its distribution system due to increasing power consumption.
Of late consumers have started facing frequent power cuts also due to high demand, confirmed state power utility. “The distribution system is overloaded and feeders are tripping due to record high demand of 1,338 megawatts (MW) because of increasing cold weather, especially in Kathmandu valley, and subsequently due to the increase in the use of electrical appliances like air-conditioners and electric heaters,” the NEA informed, adding that transformers, especially, in Kathmandu valley are facing problems of overload and distribution cables are catching fire, though the NEA is managing supply by repairing the problematic feeders and distribution lines.
According to managing director of NEA Kul Man Ghising, most of the transformers, feeders and cables are overloaded at present due to increasing demand. But he assured that they are trying to address the issue of electricity tripping by upgrading and replacing the local distribution system.
The authority but claims that it has already replaced all the transformers in the Valley to ease the situation but the electricity tripping – commonly referred as power fluctuations – has equally affected the household consumers, industries and other businesses. “The power utility has also given top priority to augment the transmission and distribution system and is installing double-circuit high-capacity transmission network to enhance the quality of power supply,” Ghising said, adding that the NEA has already replaced almost 7,000 transformers in the last fiscal and 1,041 in the first four months of this fiscal year. “The process to replace over 6,000 transformers across the country is ongoing, which will increase the capacity of the distribution system by 20 per cent.”
NEA is upgrading 100 substations across the country, particularly in the major load centres and other major problematic areas. “The authority will also upgrade the transmission and distribution system to handle additional 1,000 MW of power next year, he added. “The NEA will have to upgrade the transmission lines as some 5,000 MW of electricity will be connected to the national grid by 2024, and NEA needs to install 15,000 new transformers by then.”
Kathmandu Valley’s demand has increased to above 400 MW at present from 250 MW to 325 MW in normal times peak demand. Likewise, the country’s peak demand stands at 1,338 MW currently but NEA has been generating 508 MW and independent power producers are generating 332 MW, whereas import from India stands at 498 MW. “But Nepal has also been exporting 40 MW to Bihar in India.”

NEA to build 50 charging stations

Nepal Electricity Authority (NEA) is planning to establish 50 charging stations across major cities and highways as the country is witnessing continuous rise in the use of electric vehicles (EVs) lately.
The state-power utility – publishing a notice today – asked property owners, including commercial complexes, cinema halls, supermarkets, parks, universities, government authorities, hotels, hospitals, among others, to make land available for the NEA to construct charging station, preferably wide parking spaces. After finalisng the places, the NEA will publish a tender to set up the charging stations. “It hopes to complete the construction works within six months after the tender is awarded.
The NEA is planning to set up 15 charging stations across Kathmandu Valley within the next six months, the notice reads, adding that it is – at the moment – finalising the places. “NEA also plans to set up such charging stations across different places in Pokhara, Nepalgunj, Chitwan and Biratnagar, after the Valley.”
The NEA is planning to establish the EV charging stations every 100 km to 200 km along the highways where vehicles usually stop for refreshment. “The charging stations will be able to charge at least three EVs at a time, according to the NEA. “As the NEA is planning to pay for the land, the property owners, who make land available for the charging stations will earn extra income.”
The government has been giving priority to EVs with growing concerns of pollution, and also the huge imports of petroleum products, for which the total export amount is also not enough.
The state-power utility estimates that there are almost 600 electric four-wheelers and 10,000 electric two-wheelers plying on the Valley’s roads. But the owners of electric vehicles are forced to charge their vehicles at home due to lack of charging stations.

NEA to install 50 electric vehicle charging stations

Nepal Electricity Authority (NEA) is planning to install 50 charging stations for electric vehicles (EVs) across the country within a year-and-a-half as the country is witnessing a rising number of electric vehicles.
The demand for electric vehicles has doubled in the past year, according to automobile dealers, who claimed that electric vehicles have captivated public attention with growing number of people interested in buying such automobiles. “But due to lack of charging stations, people are hesitant to buy the electric vehicle.”
There are four private charging stations, two of them are in the Kathmandu valley and are designed especially to charge electric buses, whereas the remaining two are in Kurintar of Chitwan and Nagarkot of Bhaktapur. The charging stations outside Kathmandu Valley can charge cars only. The cost of charging electric vehicles is currently Rs 7 to Rs 8 per unit.
There are more than 41,400 electric vehicles across the country, the automobile dealers claimed, adding that there are 35,000 two-wheelers, 5,000 three-wheelers, more than 650 cars, 750 safa tempos and four buses. “The number of electric vehicles is likely to go up in the days to come because of tax exemption by the government.”
The government has introduced policies – like exemption of road tax and also less customs duty compared to the vehicles operating on fossil fuel – to promote electric vehicles as it is environment-friendly.
The NEA is looking for places, where it can set up charging stations without having to pay any rent. “The NEA is planning to operate charging stations in free places like government offices, parking areas of public schools and other public places. “The NEA is soon issuing a call for tender for setting up charging stations,” the NEA informed, adding that charging stations will be operational within a-year-and-a- half. “The increasing use of electric vehicles in Nepal is not only expected to help control air pollution but will also improve the country's GDP as Nepal has a huge potential to generate hydro-electricity.”

First electric bus plies on Kathmandu road from today

After exactly one decade of demise of electric-cable operated Trollybus in Kathmandu, Sajha Yatayat today launched test operation of electric buses in the capital.
Prime Minister KP Sharma Oli inaugurated the first electric bus service by travelling on the bus from Sajha Yatayat head office premises in Pulchok to his office in Singha Durbar.
Sajha Yatayat chairperson Kanak Mani Dixit said the buses were to be operated in Lumbini but will instead run on Kathmandu roads without potholes until the Gautam Buddha International airport was completed in Bhairahawa.
Purchased with a Chinese company BYD at Rs 20 million each, the bus has 19 seats and can accommodate 35 passengers.
According to the executive director of Sajha Yatayat Bhusan Tuladhar, the bus service has begun operation under the South Asia Tourism Infrastructure Development Project supported by Asian Development Bank (ADB). Under the project, ADB has provided five buses to Lumbini Development Trust, out of which two were brought to Kathmandu to start operation and determine their functionality.
"The management of the electric buses – which are also disabled-friendly – will be carried out by Sajha Yatayat," he said, adding that electric buses have been brought into operation with the joint initiative of Lumbini Development Trust and Sajha Yatayat.
Launching the bus, the premier said that the government is promoting electric vehicles. "Nepal Electricity Authority (NEA) is also setting up charging stations at 20 different places," he said, adding that the government is committed to increasing the standard and quality of public vehicles.
Emphasising the role of private sector, he also urged the private sector in expansion of electric bus service.
Tourism Minister Rabindra Adhikari, on the occasion, said that construction of Gautam Buddha International Airport – also part of the ADB Project – will be completed within the next six months.
Earlier, China had gifted electric-cable operated trolleybus to Nepal in 1975. The trolleybus – running From Tripureshwor of Kathmandu to Suryabinayak of Bhaktapur – opened on December 28, 1975. But the only trolleybus system ever to be constructed in Nepal, suspended its operations – for almost two years – from December 19, 2001 to September 1, 2003 due to lack of regular power supply, maintenance, financial problem, red tape and political bickering. Though, the trolleybus restarted its service in 2003, it could not cover the complete route but remained only to half till Koteshwor. The operation of trolleybus was again suspended – for the final time – in late November 2008, and formally closed in November 2009.