Demand to increase loan value ratio for purchase of electric vehicles

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.

Issuing a press release, FNNTE General Secretary Dekanath Gautam claimed that the government has given high priority to the use of electric vehicles, but the provision on the purchase of the same vehicles made in the monetary policy has affected the entrepreneurs.

The Federation has argued that the government, which has decided to give high priority to green energy, has, through the provisions of the monetary policy, discouraged the use of electric vehicles instead of giving concessions in the purchase of electric vehicles to reduce air pollution and consume the energy produced domestically.

Nepal Rastra Bank (NRB), in its half-yearly review of its monetary policy, had reduced the loan price ratio to 60 per cent for the purchase of electric vehicles. Earlier, this provision was 80 per cent.

Now a maximum of 60 per cent loan is available from banks and financial institutions for the purchase of electric vehicles.

FNNTE has demanded to increase the loan price ratio to 80 per cent for the purchase of electric vehicles and diesel vehicles.