Embossed number plates will be mandatory for all vehicles starting Sept 17, the Department of Transport Management (DoTM) announced on Aug 19. The department said that services such as vehicle registration, ownership transfer, and renewal will only be provided after the installation of embossed number plates. It also stated that technical and regulatory preparations are being carried out in coordination with the Ministry of Home Affairs and the Traffic Police.
However, the Central Federation of Public Transport Nepal has issued a public statement urging citizens not to install embossed number plates. In a statement released on Monday, the federation called on all stakeholders to refrain from installing the plates until the existing practical issues are properly addressed.
“We sincerely request everyone—from the general public, tourism and transport sectors, to private vehicle owners—not to install embossed number plates without revising and resolving the practical problems raised during discussions and dialogues with the government,” the statement read. The federation mentioned that if attempts are made to forcibly implement the installation, the agencies under the Ministry of Transport will be held accountable for any resulting protests and resistance activities.
The federation criticized the government’s decision, arguing that it could lead to the disappearance of the Devanagari script used in Nepali license plates, place an economic burden on citizens and the transport industry, and allow foreign entities to control sensitive data of Nepali citizens. They believe this would ultimately weaken national sovereignty.
An embossed number plate features camera-readable digits and is embedded with an RFID (Radio-Frequency Identification) microchip. In Nepal, vehicle license plates follow a color-coded system to distinguish between different types of ownership. Public and tourist vehicles use yellow plates with black lettering, while private vehicles have white plates with black letters. Government-owned vehicles are marked with white plates and red letters, and foreign or diplomatic vehicles display white plates with blue letters. These plates are made with reflective materials to enhance visibility at night and are integrated into a digital database, streamlining processes such as ownership transfers and registration renewals. Although the plan was originally included in the Three-Year Interim Plan (2007–2010), it was only introduced in the fiscal year 2015-16. In May 2016, the contract for the project was awarded to Decatur-Tiger IT, a Bangladesh–US joint venture, with the goal of installing plates on 2.5m vehicles by 2021.
However, the project faced controversy. In 2019, the World Bank blacklisted Tiger IT Bangladesh and its CEO, Ziaur Rahman, for a period of 10 years, citing “collusive, corrupt, and disruptive” practices during a bidding process for one of its projects in Bangladesh. Despite the blacklisting, the Nepali government proceeded to renew its contract with Tiger Decatur.
The project later faced multiple setbacks due to legal disputes, administrative delays, and allegations of irregularities. One of the most contentious issues was the use of English text instead of Nepali on the number plates, which drew significant public criticism. Concerns over inflated pricing, substandard quality, fueled opposition and controversy surrounding the initiative.
Petitions were filed with both the Supreme Court and the Commission for the Investigation of Abuse of Authority (CIAA). After nearly two and a half years of hearings, the Supreme Court ruled that the use of English text—similar to that used in passports and driving licenses—did not violate the Constitution. Following this judicial clearance and no objection from the anti-graft body, the government moved forward with resuming the project’s implementation.
The issue was also raised in Parliament, where Gagan Thapa, General Secretary of the Nepali Congress, criticized the government’s directive, stating that it had caused unnecessary inconvenience to citizens.
On 3 June 2022, the Department of Transport Management, under the Ministry of Physical Infrastructure and Transport, issued a notice mandating the installation of embossed number plates for all vehicles operating in Bagmati and Gandaki provinces by 17 July 2022. The notice warned that vehicles failing to comply would be penalized under the Motor Vehicles and Transport Management Act, 1993. While embossed number plates are mandated across all provinces, Province 1 was initially excluded due to delays in finalizing its official name.
Under the contract, the cost of embossed number plates is set at Rs 2,500 for motorcycles, Rs 2,900 for three-wheelers, Rs 3,200 for four-wheelers, and Rs 3,600 for larger vehicles—a lot more expensive than conventional plates. This steep pricing has drawn strong criticism from lawmakers, consumer rights groups, and transport entrepreneurs. However, government officials have defended the rates, citing the inclusion of advanced security features such as RFID chips and camera-readable text. They also argue that the cost is significantly lower than in many other countries, where similar plates can cost up to Rs 10,000. The fee is split evenly between the contractor and the government. In comparison to India’s High Security Registration Plate (HSRP) system, which costs between Rs 400 and Rs 1,100, Nepal’s pricing is considerably more expensive.
Ganeshman Singh Rai, the Information Officer at the DoTM, said that the urgency to complete the project stems from the impending expiration of the agreement with the contractor. “The vendor’s term for the long-running program is nearing its end,” he explained. Rai explained, from a security standpoint, several investigation and thematic committees have highlighted the importance of implementing embossed number plates. In response, the department has initiated preparations in line with a ministerial decision.
He added that multiple discussions and agreements have taken place between the ministry, the department, and the provinces to move the project forward. “The vendor is ready, and we are all on board,” he said, emphasizing that the department is providing the necessary budget and human resources for implementation.
According to the department, the introduction of the new embossed number plate system brings several key benefits, particularly in terms of security and efficiency. Unlike the old hand-painted plates, which were easy to tamper with and contributed to vehicle theft, the new plates are embedded with a microchip and GPS, making them difficult to replace or misuse. The system also addresses the long-standing issue of duplicate number plates by ensuring each vehicle has a unique identity.
Additionally, the reflective design enhances visibility at night, aiding both drivers and law enforcement in identifying vehicles, especially in cases of accidents or illegal activity. Uniform fonts and sizes make the plates easier to read, promoting better recognition and reducing confusion. All vehicle and ownership information is stored in a central digital database, providing a reliable source for tracking, verification, and analysis, which could prove valuable in preventing fraud and theft.
DoTM has also unveiled plans to enhance vehicle monitoring by installing RFID gates at 10 strategic locations across the country. Currently, two gates are already operational—one in Nagdhunga and another at the Nagarjun (Bhimdhunga and Dhading border point). Construction is underway at additional sites, including Pharping near Danshinkali and Pathlaiya. As part of the broader initiative, the contractor has pledged to install a total of 100 RFID gates, provide handheld tracking devices, and produce 2.5m embossed number plates to support the implementation of this system.
Recently, it is estimated that 6m vehicles registered the embossed number plate. At present, around 800,000 embossed plates have been produced, but approximately 450,000 of them remain unused in storage. Meanwhile, offices such as the one in Ekantakuna openly acknowledge that they can only process about 100 plates per day. Given this pace, it’s clear that reaching the target of outfitting millions of vehicles before the date given is virtually impossible.
In the first phase of the embossed number plate rollout, DoTM held consultations with four provinces: Gandaki, Bagmati, Madhes, and Koshi. One notable improvement under the new system is that if either the front or rear plate is damaged, only the affected plate needs to be replaced. Under the previous system, both plates had to be replaced even if only one was damaged. The DoTM introduced this change to minimize unnecessary costs and reduce the burden on vehicle owners.
A significant number of young Nepalis live and work abroad, making it challenging for them to be physically present for the installation of embossed number plates. Under the previous system, vehicle owners were required to be present during registration and ownership transfer. However, the current directive addresses this issue. According to the new guideline, Nepali citizens living overseas can authorize close family members—such as parents or siblings—to complete the installation process on their behalf.
