Kathmandu: The Federation of Nepalese National Transport Entrepreneurs (FNNTE), an umbrella body of transport entrepreneurs, has demanded the removal of the monetary policy provision for the purchase of electric vehicles and diesel-powered vehicles.
According to National News Agency Nepal, FNNTE General Secretary Dekanath Gautam issued a press release claiming that the government has prioritized the use of electric vehicles, yet the current monetary policy provisions have negatively impacted entrepreneurs. The Federation argues that despite the government’s decision to prioritize green energy, the existing provisions within the monetary policy discourage the use of electric vehicles. Instead, they advocate for concessions in purchasing such vehicles to help reduce air pollution and utilize domestically produced energy.
Previously, Nepal Rastra Bank (NRB), in its half-yearly review of its monetary policy, had reduced the loan value ratio to 60 per cent for the purchase of electric vehicles, down from an earlier provision of 80 per cent. This adjustment means that now a maximum of 60 per cent loan is available from banks and financial institutions for purchasing electric vehicles.
FNNTE has called for an increase in the loan value ratio back to 80 per cent not only for electric vehicles but also for diesel vehicles, aiming to support entrepreneurs in their vehicle purchases amidst the evolving landscape of energy and transportation policies in Nepal.