Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Department of Transport Management (DoTM) has suspended the new registration of all public vehicles across Nepal, citing growing traffic congestion, rising air pollution and mounting pressure on road infrastructure.
The department said the decision will remain in effect until further notice and applies to all provinces and local governments nationwide.
A circular issued on Jestha 7 by DoTM Director Mani Ram Bhusal has been sent to relevant provincial ministries, including ministries responsible for physical infrastructure, labor and transport management, as well as all local government bodies across the country.
In a significant move, the department has clarified that the restriction applies not only to fuel-powered public transport vehicles but also to new registrations of electric public vehicles (EVs).
According to the official directive, all categories of public transport vehicles—including electric buses, microbuses, vans and other commercial passenger vehicles—will be barred from obtaining new registrations during the suspension period.
The department outlined several reasons behind the decision, including:
Officials argue that the rapid increase in vehicle numbers without proper transport planning has exacerbated urban mobility problems, particularly in major cities including Kathmandu Valley.
The DoTM said it exercised authority granted under Section 24 (3) of the Motor Vehicles and Transport Management Act, 1993 (Vehicle and Transport Management Act, 2049 BS).
Under the law, the department is authorized to suspend vehicle registrations at some or all offices if environmental pollution, excessive vehicle pressure, poor road conditions, or transportation-related disruptions create challenges to public welfare.
Based on this legal provision and in line with the government’s policy of ensuring a more scientific and managed public transportation system, the department has formally instructed provincial ministries and local-level transport offices to immediately halt new registration procedures for public vehicles.
The decision comes at a time when Nepal is grappling with worsening urban traffic, rising emissions and increasing debate over the sustainability and efficiency of the country’s public transport system.
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