Regional Consultation on Vehicle Import Policy Road Map for Clean Air May 31, 2018 Zanzibar, United Republic of Tanzania (Center for Science and Environment, India) Ram Chandra Poudel Senior Divisional Engineer Government of Nepal Ministry of Physical Infrastructure and Transport Department of Transport Management 1
A Brief Country Profile Nepalese Experience on Management of Motor Vehicles Area 147,181 km 2 Population (2016) 28.331 million Species of Fauna 4395 Species of Flora 10,091 Number of rivers 6000 total annual average surface run-off in rivers 225 Billion Cubic Meter Human Development Index Score 0.548 (2014) Share in global GHG emission 0.027% GDP (Producers Price) (2017/18) Share of Agriculture in GDP (2017/18) 27.6% GDP growth rate (2017/18) US $ 30 Billion (estimated) 5.9% (estimated) GDP per Capita (2017/18) US$ 1004 Literacy (15-24 Years) 88.6% 2
8 7 6 5 4 3 2 1 0 GDP Growth % 6.9 5.8 5.7 4.4 4.6 4.3 3.8 3.7 3.9 3.9 3.8 3.2 2.8 2.32 0.77 0.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 7 6 5 4 3 2 1 0 Agriculture Sector Growth % 5.8 5.32 4.7 3.1 3.3 3.5 3 4.5 4.6 4.6 1.9 2 1 1.1 0.8 1.3 2001200220032004200520062007200820092010201120122013201420152016 8 6 4 2 0-2 Service Sector Growth 7.3 6.8 6.9 6 6.2 5.6 5.8 5.7 5 4.5 3.7 3.3 3.4 3.6 2.7 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-1.8 12 10 8 6 4 2 0-2 -4-6 -8 Industrial Sector Growth % 10.97 6.9 4.4 4 4 4.3 3.1 2.9 3 2.7 1.5 1.6 1.5 0.7-0.6 2001200220032004200520062007200820092010201120122013201420152016-6.3-4 3
Structure of Economy (2016/17) 30% 56% 14% Agricultural Manufacturing Service labour Force Across Sectors (2014) 19% 12% 69% Agricultural Manufacturing Service 4
30000 Status of Strategic Road Construction, km 25000 20000 15000 10000 5000 0 Sealed Gravelled Unsealed Total 5
Constitutional, Policy and Legal Arrangements: Constitution of Nepal (2015) National Transport Policy (2001) Climate Change Policy (2011) Environment Friendly Vehicle and Transport Policy (2014) Environment Protection Act (1997) Environment Protection Rules (1997) Ozone Depleting Substances Consumption (Control) rules (2001) Motor Vehicle and Transport Management Act (MVTA) (1993) Motor Vehicle and Transport Management Rules (MVTMR) (1997) Emission Standard for In-Use Vehicles (1998) Nepal Vehicle Mass Emission Standard (NVMES-2012) 6
Issues on Transport Sector & Environment Lack of Exact Data: no specific study carried out so far Infrastructure : poor condition of roads, no railway, water way not being used, intermodal transport in primitive stage, difficult terrain Inefficient and Polluting Vehicles Weak Enforcement Capacity / Poor Compliance Lack of Awareness and Motivation among Vehicle Users and Transport Service Providers Market: fragmented service provider organizations, no incentives from government to support technology upgradation, lack of access to low cost finance and technology Failure to harness hydro-electric Potential as source of energy for Transport 7
Opportunities and Way Forward: Systematic Study of Exact Situation for Reliable Data Strict Enforcement of Prevailing Standards Education and Training for Stakeholders Better Traffic Management (Vehicles, Routes, Time) Technological Intervention : use of better tires, roof deflectors, catalytic converters, promotion of preventive maintenance Access to Technical Assistance and Low Cost Finance New and Updated Standards for Vehicles Infrastructure Building: better, strategic roads, railway, dry ports, petroleum pipelines Transforming the Energy Mix: increasing electricity production, substitution of petroleum products 8
Number of Motor Vehicles Nepalese Experience on Management of Motor Vehicles Total Number of Motor Vehicles Registered up to 2016/17 (2,783,428) Others 21% Motorcycles 79% 9
Number of Motor Vehicles Nepalese Experience on Management of Motor Vehicles Number of Vehicles Registered up to 2016/17 except Motorcycles) (594,329) 3 wheeler (Tempo) 5% Tractor 22% ericksaw 2% Bus 9% Minibus/Mini trucks 4% Trucks and Heavy Vehicles 13% micro bus 1% Pick up 8% car/van 36% 10
Number of Motor Vehicles Nepalese Experience on Management of Motor Vehicles 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Rate of Increase of Stock of Motor Vehicles 18.99 17.23 13.65 12.73 2013 2014 2015 2016 11
Institutional Framework for Transport Regulation Ministry of Physical Infrastructure and Transport Department of Transport Management Transport Management Offices (14) Vehicle Fitness Test Center (1) Under Plan (8) Transport Management Service Offices (16) 12
Mass Emission Provision for New Vehicles to be Imported No Pre shipment Inspection No measurement of Mass Emission in Chassis Dynamometer or Engine Dynamometer Import permitted upon submission of Type Approval and Conformity of Production certificates issued by competent authority in Manufacturing Country 13
Biannual Road Test for Public Vehicles Rule 39(2) of MVTMR: Details to be examined during a Road Test Vehicle body windows, Seats Windscreen headlights, sidelights, back lights and other lights starting, pick-up and general tuning of engine steering Brakes Gears, Tires Wheels Springs Tie-rod Noise and Emission 14
Regulation Trail (Pursuing Greener Transport) 30 Aug 1999 (Nepal Gazette Part 49 Supplement 21 (A+1)) Registration of new 2 Stroke Engine Vehicles Banned Registration and Transfer of Title of Diesel powered 3 Wheelers Banned 99% custom duty and 100% Value Added Tax waived for the entrepreneurs who would import gasoline powered 10-14 seater bus by displacing diesel 3 wheelers 15
Regulation Trail (Pursuing Greener Transport) Contd.. 23 Dec 1999 Nepal Gazette Part 49 Pre-Supplement 38 (A+3) Introduction and Enforcement of Nepal Vehicle Mass Emission Standard 1999 (Equivalent to Euro I) Except for tractors, power tiller, dozer, loader, dumper, crane, roller and excavator 11 Aug 2000 : Government Notification Restriction on import of used items including machineries and their parts, engine pumps & piston heads 16
Regulation Trail (Pursuing Greener Transport) Contd.. 23 Oct 2000 In-use Vehicle Emission Standard (Green Sticker Standard) 10 Nov 2000 (Nepal Gazette Part 50 Supplement 41) Ban on operation of all types of vehicles made prior to 1980 with effect from 16 Nov 2001 Ban on operation of 2 Stroke engine based vehicle and petrol or diesel fueled 3 wheelers inside Kathmandu valley with effect from 16 Nov 2001 Ban on operation of Diesel 3 Wheelers all over Nepal 17
Regulation Trail (Pursuing Greener Transport) Contd.. 13 Aug 2012 Nepal Vehicle Mass Emission Standard 2012 (Equivalent to Euro III) 14 March 2016 Strategic Work Plan for Development of Road, Rail and Transport for Prosperous Nepal (2016-21) All public vehicles to be scrapped within deadline of 2 years i.e. 14 March 2018 20% out of all vehicles plying in the country will be converted into environment friendly vehicle 22 February 2018 Nepalese Experience on Management of Motor Vehicles Revision of In -Use Vehicle Emission Standard with effect from August 2018 18
Provisions on Import of Vehicles (Finance Act -temporal) Only an authorized dealer can import motor vehicles from the country of manufacture or from authorized dealer in another country If a vehicle is not being imported directly from the manufacturer the importer should furnish a tripartite agreement between the manufacturer, exporting dealer and the importer. Reconditioned or used vehicles or vehicles not complying to Nepal Vehicle Mass Emission Standard 2012 cannot be imported Exceptions: Following persons are allowed to bring used vehicles Foreign service employee working at Nepalese Diplomatic Mission abroad A foreign diplomatic staff- member working in Nepal 19
Steps to Encourage Environment Friendly Vehicles and Transport Value Added Tax Exempted in import of following items used in: Electric 3 Wheelers Deep Cycle Lead Acid Battery Electric Motor Chassis Full Custom Duty Exempted for Components and parts required for converting a fossil fuel 3 Wheeler to electric 3 Wheeler catalytic converters magnetizers machines and equipment for battery recycling plant Partial Custom Duty Exempted Hybrid motor vehicles (25% exempted) Large buses with >40 seats (95%) Components or parts for use in manufacturing of Electric Rickshaw 20
Fuel Quality Fuel quality dependent on the fuel quality prevalent in India April 2017 : Nepal Oil Corporation (NOC) is supplying Euro IV grade fuel From 2020 onward NOC may supply Euro VI grade fuel 21
Environment Friendly Vehicles and Transport Policy 2014 Goals Promoting the national production Infrastructure for such vehicles and services Promoting the industry, trade and technology Converting the fossil fuel vehicles to environment friendly vehicles Emission reduction and environment protection 22
Environment Friendly Vehicles and Transport Policy 2014 Strategic Programs Encouraging, enabling and promoting national industry in this field Government or government owned entities to buy such vehicles giving priority to national product, making at least 20% of all vehicles to be environment friendly by 2020 Provision of exemptions on Finance Act. Income Tax, Custom, VAT, Excise Duty, rebates Separate facilitated regulation, test, registration and operation Priority sector for bank credit Tourism area such means 23
Environment Friendly Vehicles and Transport Policy 2014 Strategic Programs (Contd..) Cooperation between Public, private and cooperatives for building Green mode of transport like Rope-Ways Charging Stations for Electric Vehicles Parking lots with solar powered charging facilities for electric vehicles Promotion of Battery recycling industry pollution tax on battery Separate lanes for cycles Conversion old vehicles into to electric vehicles before they are auctioned Separate route and identity for such vehicles used in public transportation 24
CO (%) v/v Frequency Scenario: Random Road Side Test of 114 Petrol Vehicles (Jan 2018) (In Kathmandu) 60 50 40 30 20 10 0 11 10 9 8 7 6 5 4 3 2 1 0 53 12 7 11 3 8 8 8 2 2 0 to 1 1 to 2 2 to 3 3 to 4 4 to 5 5 to 6 6 to 7 7 to 8 8 to 9 9 to 10 CO (%) v/v 0 20 40 60 80 100 120 Observations Nepalese Experience on Management of Motor Vehicles Max. Permissible level of CO 3% Pass (number) 72 (63%) Fail (number) 42 (37%) Average CO 2.54 St.Dev CO 2.84 Average (Pass) 0.61 St.Dev (Pass) 0.76 Average (Fail) 5.85 Stdev (Fail) 1.88 25
HC (PPM) Frequency Nepalese Experience on Management of Motor Vehicles Scenario: Random Road Side Test of 99 Petrol Vehicles (Jan 2018) (In Kathmandu) Max. Permissible level of HC 1000 60 50 40 30 20 10 0 3500 3000 2500 2000 1500 1000 500 0 to 250 250 to 500 500 to 750 750 to 1000 1000 to 1250 1250 to 1500 1500 to 1750 HC (ppm) 1750 to 2000 2000 to 2250 2250 to 2500 2500 to 2750 2750 to 3000 Pass (number) 94(95%) Fail (number) 5(5%) Average 340.62 St.Dev 487.13 Average (Pass) 255.82 St.Dev (Pass) 271.45 Average (Fail) 1934.8 Stdev (Fail) 868.73 0 0 20 40 60 80 100 120 Observations 26
Frequency Smoke Opacity (%) Nepalese Experience on Management of Motor Vehicles Scenario: Random Road Side Test of 81 Diesel Vehicles (Jan 2018) (In Kathmandu) Max. Permissible Opacity 65% 30 25 20 15 10 5 0 105 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 7 3 3 1 3 7 6 11 7 7 0 to 5 5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75 75 to 85 85 to 95 95 to 100 Smoke Opacity (%) 0 20 40 60 80 100 Observations 26 Pass (number) 30 (37%) Fail (number) 51 (63%) Average 44 St.Dev 32.4 Average (Pass) 32.3 St.Dev (Pass) 23.2 Average (Fail) 89.7 Stdev (Fail) 11.3 27
Lessons: Only making good policy and legislation is not enough for making motor vehicles and transport sector environment friendly Physical infrastructure, dedicated human resource and commitment by all stakeholders are required for effective implementation and monitoring of existing standards. Policies and standard formulation, implementation and monitoring should be based more on empirical realities (evidence) Systematic study is required to find out how vehicles of different age, make and model are contributing in emission. Introduction of vehicles of better technology requires investment of resources and also awareness and motivation among users 28
Next Steps: Establishment of Mass Emission Lab to conduct tests on random sample of imported vehicles. Setting Up of Central Data Base connected Emission Testing Centers throughout the country. Setting up of 7 Vehicle Fitness Test Centers across the country Awareness raising programs for transport entrepreneurs and general public Extensive study of emission pattern based on type, make and age of vehicles Incentives in terms of tax and custom duty exemption or subsidy for conversion technology and for emission control devices. More incentives and promotional steps for import or production of electric vehicles and simplification of the testing and registration of such vehicles. 29
Thank You 30