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Rumoured Kathmandu Valley transport authority could reshape public transit

A draft bill proposes stronger powers for the Urban Area Public Transport Authority, integrated route planning, and subsidies for night-time bus services in Kathmandu Valley.

Published 6 Aug 2026
What it means for Nepal

A draft bill proposes stronger powers for the Urban Area Public Transport Authority, integrated route planning, and subsidies for night-time bus services in Kathmandu Valley.

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Rumoured Kathmandu Valley transport authority could reshape public transit

The Ministry of Physical Infrastructure and Transport has prepared a draft bill to amend the Urban Area Public Transport (Management) Authority Act, 2079. If approved, the changes would give the authority wider powers to plan and control public transport in Kathmandu Valley and other urban areas.

Under the proposal, the authority would handle route planning and allocation, route permits, service timetables and fare setting, as well as introduce digital, cashless fare payment and oversee service quality.

The draft lists many types of transport infrastructure the authority must identify and plan for, including bus parks, bus stops, depots, terminals, dedicated bus lanes, passenger waiting areas, parking spaces, EV charging stations, traffic signals and road signs.

Public transport service providers would not only be vehicle operators. The bill also counts companies handling cashless fare systems, fare collection and distribution, advertising and other transport-related services as part of the system.

Importantly for riders, the proposal allows subsidies for operators running buses at night or in special conditions, with services classified by demand such as peak hours and night operations, and separate agreements signed to keep such services available.

AN
Ajit Narayan Singh
Editor, Nepal AutoMart

Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.

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