Gandaki Province Legalizes Ride-Sharing Services with Updated Regulations

Pokhara. The Gandaki Province government has initiated the implementation of ride-sharing services by legalizing them. The cabinet meeting held on Magh 4 decided to implement the service after making some amendments to the existing regulations.

The government had previously passed the regulations in the cabinet meeting on Baisakh 30. However, Chief Minister Surendra Raj Pandey informed that the regulations, which were halted due to obstruction by the federal government, are now moving forward with some amendments. 

'Some ambiguities in the regulations have been removed to systematize the ride-sharing service. Since the regulations have been amended, the transport office will soon publish a notice and start the formal registration process,' he said.

The regulations specify a limit for four-wheeled vehicles. Previously, while it was stated that two-wheelers could offer services up to a distance of 20 kilometers, it was not clearly defined for four-wheelers. Now, four-wheelers will only be allowed to provide ride-sharing services up to 50 kilometers.

 The government stated that only four-wheeled vehicles with a seating capacity of 5 seats will be permitted in this service. The mandatory requirement to affix a 'logo' to identify the vehicle has been removed. The annual service fee for two-wheelers has been reduced from 5 thousand rupees to 2,500 rupees, while the annual service fee for four-wheelers has been set at 10,000 rupees, down from 20,000 rupees. Instead of 1 percent of every transaction, service provider companies will now have to deposit 2 percent of the amount into the Provincial Consolidated Fund.

A fine of 100,000 rupees has been set for operating without permission, and a provision has been added for a fine of 4,000 rupees for two-wheelers and 10,000 rupees for four-wheelers recommended by the traffic police for carrying offline passengers.

 With this, private vehicles in Gandaki will also be allowed to carry paying passengers after meeting certain standards. Prior to starting the ride-sharing service, permission must be obtained from the provincial government. The regulations include provisions for the permit and renewal for entities providing ride-sharing and self-drive services.

Upon obtaining permission, two-wheeler operators must pay 25,000 rupees, while four-wheeler operators must pay 50,000 rupees. Companies wishing to offer both services must pay 70,000 rupees for the permit. The regulations also mandate that vehicle owners, separate from the companies, must pay a separate fee.

Both two-wheeler and four-wheeler vehicles will be subject to renewal fees based on engine capacity (CC) and corresponding additional fees.

The Economic Act specifies that vehicle owners affiliated with ride-sharing or self-drive services must pay renewal fees separately as determined for each vehicle per year, if specified. After registering to operate this way, if the number of vehicles changes, the permit must be updated within the stipulated time.

A separate committee will be formed under the coordination of the Ministry's Secretary to monitor the implementation of the passed regulations. Members will include representatives from the Chief Minister's Office, the head of the concerned office, the head of the District Traffic Police Office, one representative nominated by the Ministry from consumer rights-related organizations, and the head of the concerned division will serve as the Member Secretary.

There is a provision for legal action if ride-sharing is operated without a permit. A fine will be imposed if the service is operated without extending the service purpose as per the regulations. As soon as the province passed the regulations, the federal government sent a circular directing an immediate halt to implementation. However, the provincial government paused the process for some time, citing that the constitution mentions coordination and cooperation.

The process, which was halted for 1 month, is being brought back into implementation after 8 months.