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Kathmandu, Sunday, September 26, 1999 Ashwin 09th, 2056.
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After
Saying Good Bye to Diesel….
-By Anil Baral
Much respite for Kathmanduites - Diesel
tempos were finally evicted out of the valley. This came after long
struggle on the part of the government, concerned organizations and
more importantly the general public. It is a fruit of collective
action and dream; not of individual action and dream as some sources
have claimed. The banning of diesel tempos came at time when Electric
Vehicle (EV) industry and Tuk-Tuks (LPG-run three-wheelers) are
emerging impressively as an alternative to polluting vehicles. The
banning of diesel tempos by the government is an indication of
government’s effort to pave the way for cleaner air. However, there
are strong arguments coming up that there are other better ways to
cope with worsening air pollution in Kathmandu valley.
One strong argument being put forward
is why the government chose to remove diesel tempos ignoring the much
publicized polluting vehicles phase-out program. Of course it is a
daunting task compared to displacing diesel tempos but its
implications would have been far better. Firstly, it would not have
got the blame that only diesel tempos were targeted as under this plan
all polluting vehicles are to be displaced gradually. Secondly, this
would have allowed enough time for market force to come into play and
fill the void created by phasing out of polluting vehicles. Thirdly,
since all vehicles have to meet the vehicular emission requirements
set by the government, the over all impact on air quality would have
been far better than what we have today after expulsion of diesel
tempos alone. Since diesel tempos constitute less than one per cent of
total vehicles, its contribution to air pollution in the valley is not
significant although they are themselves the most polluting vehicles.
Moreover, the government would have been spared from taking populist
measure of granting more than 110 percent concessions to diesel tempo
operators to assist them to import Micro Bus with Euro I standard.
This populist measure has cost government revenue to the tune of Rs.
50 crores.
The another flaw in the government move
is what Bikash Pandey (REPSO, Winrock International) has aptly
described as "lost opportunity". It is ironic that while we
have strong EV industries and growing market for EV and Tuk-Tuk, Micro
Bus has been promoted as substitute for diesel tempos. That too with
waiver of import duty and VAT exemption. It has put a dent on
government’s efforts toward cleaner air in Kathmandu valley to a
certain extent.
Despite being non-polluting, electric
tempos are manufactured in Nepal. They have created new jobs and saved
the country foreign exchange as they use country’s hydropower for
fuel. After the banning of the diesel tempos, Electric tempo
production has surged up and there is a long queue of customers in
awaiting list. The way demand has peaked up, it seems likely that
electric tempos can replace all 640 banned diesel tempos within a year
if Micro Buses fail to appear.
Though Micro Buses that meet Euro I
emission standard are to replace diesel vehicles, no such vehicles
seem to be in market currently. There are advertisements for Micro Bus
which tell they are "equivalent to Euro I". There is a big
difference between Euro I and equivalent to Euro I. Such craftily used
word has confusing connotations. It might lead to a situation where we
have substandard Micro Bus replacing diesel tempos. The government
should not agree with any thing less than Euro I. Even in the case
entrepreneurs show the certificates that they meet Euro I, the
government needs to be equipped with technology to monitor whether
Micro Bus meets Euro I requirements.
The vehicular emission standard that we
have today is crude one and does not consider most of the harmful
pollutants. For diesel engine, smoke level in HSU unit is set as
measurement of emission level. For petrol engine, carbon monoxide
level (in percentage) is set as measurement of emission level.
However, European Union Emission standards, as for example, Euro I are
stringent and take into account Carbon Monoxide (CO), Hydrocarbon
(HC), Oxides of Nitrogen (NOx) and Particulate Matter (PM). The
problem with Euro I is that the technology we currently have can not
determine whether vehicles meet Euro I requirements not.
Concomitant to expulsion of polluting
vehicles there requires strengthening of institutional capability to
formulate and enforce regulations and monitor them effectively.
Strengthening institutional capability requires human resource
development, technological upgrading, and empowerment. In absence of
strong monitoring mechanism and with weak authority and very few
regulations to enforce them there is a pretty much big room to doubt
if the government can stick to its promise of Euro I.
The goal to cleaner air not only lies
in replacing polluting vehicles but also in use of cleaner fuel. The
rampant adulteration of fuel quality is a major concern in Nepal. The
adulterated gasoline and diesel reduce efficiency and emit more
pollutants. While AFVs (LPG, CNG, Ethanol, Hybrid, Electric, etc.) are
being promoted, short-term measures such as use of cleaner fuel,
proper maintenance of vehicles, and road maintenance are desirable to
ease the passage from conventional mode of transport to AFVs. In
addition to these, other practical steps that can be taken are: 1)
promotion of AFV production and conversion; 2) highlighting the
economic benefits of using alternative fuels; 3) expansion of the use
of domestically produced alternative fuels, in our case hydropower; 4)
advancement of clean air objectives; and 5) informing public and
private fleets of tax incentives and loan funds for the purchase or
conversion of AFVs.
Here, our government has done a good
job by providing some economic incentives such as VAT exemption on
chassis and batteries, considerable import tax reduction on all
components of EVs (from 20 per cent to 1 per cent), and electricity
tariff concessions for charging stations. Recently the Ministry of
Population and Environment with financial assistance from DANIDA has
offered soft loans at five per cent interest rate to 50 customers to
buy Electric tempos.
The use of Alternative Fuel Vehicles (AFVs)
such as Electric Vehicle and Tuk-Tuk is likely to expand in Nepal as
emission standards become tougher, concern about air quality grows,
and as more fleet operators and individuals appreciate the economic,
environmental and public relation advantages of using Alternative Fuel
Vehicles. Considering the regulatory environment, technological
change, resource infusion, and the upgraded priority level,
Alternative Fuel Vehicle (AFV) market represents significant
opportunities in Nepal as well as worldwide. At the same time this
market also represents substantial risk, especially in view of the
technology requirements, the resource needs and constraints, and the
moving target of government regulations. Looking into the growth and
experience of EV industry and Tuk-Tuks it would not be hyperbole to
state that, in Electric tempo and Tuk-Tuk, we have found a singularly
"Nepalese" way of representing Nepal in the world of
transportation.
(A. Baral believes
AFVs arekey to cleaner air)
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