The government has started taking action against syndicate system in the transportation industry in recent days. How challenging is it?

Despite being illegal, the syndicate system has strongly gripped the transportation industry. Thus, wiping out this anti-competitive practice is surely challenging. However, the challenge lies only in the implementation part, not at the policy level. Our policies have already termed transport syndicate as ‘illegal' and have clearly discouraged activities promoting it. However, it is the lack of a strong implementation mechanism of the government due to which the system has become widespread. The root to transport syndicate are those committees and associations of transporters who have been preventing the healthy growth of transportation industry by not allowing new players to operate similar services. Moreover, we have also learnt that these transport committees and associations have been selling membership at more than Rs one million. We have started doing away with the transport syndicate system from the Araniko Highway by giving vehicle route permits to new transport companies on the route. However, transport syndicate in the highway has been only partially removed. In a bid to scrap syndicate system completely from Araniko Highway and other roads across the country we should bring all transport committees and associations under the jurisdiction of the Department of Transport Management (DoTM). Transport syndicate can be completely removed only after we are able to make these transport committees register as commercial firms at DoTM or any other government agencies. However, there are a lot of other challenges in the transportation industry that have to be addressed by the government. There is an urgent need to study the requirement of types and number of means of public transportation in different types of routes as per their geographical condition and population density along the coverage area of a particular road. The DoTM is proposing a comprehensive study of all roads in the upcoming fiscal budget. Once we get assurance of resources for the study from the government, we will review all the routes in the country. Vehicle route management is urgent to standardise domestic transportation industry.

Strong policies and their effective implementation are crucial to control the long-prevailing syndicate system. What policy reforms and implementation mechanisms have been planned to discourage transport syndicate?

Nepal has many good policies. But when it comes to their implementation, we are really poor. Our trend is that politicians declare ambitious policies without the assurance of ample resources required for the implementation of these policies. Similarly, the coordination between government agencies in Nepal is also poor. These factors directly affect the implementation of any policy in the country. For instance, the total road length in Kathmandu Valley is almost 2,000 kilometres. However, we have so many authorities like the Department of Roads (DoR), Kathmandu Metropolitan City, different municipalities, Kathmandu Valley Development Authority and DoTM itself, among others and the coordination between these agencies is very poor, which directly affects the implementation of any policy. Thus, the government should now give sole authority to deal with road issues across strategic roads to DoR and other roads to the local governments. Regarding ending the transport syndicate, we have enough policies in hand. However, we failed on the implementation side as we allowed transport committees to register as non-profit firms but could not control them from becoming commercial and profit oriented. Also, we could not monitor their activities properly. Our policies should not have allowed such transport associations to be registered as non-profit firms. As a result of this policy lapse, transport syndicate became stronger. Not only have these transport committees and associations become highly commercial, they have also got divided on the basis of political principles. This has ensured access of transporters to powerful political leaders and transporters easily started influencing leaders of different political parties. The increasing influence of transport entrepreneurs in politics gradually started influencing the government decisions and policies.

Governments in the past had also attempted to discourage transport syndicate but ultimately failed. How optimistic are you towards the transport syndicate being completely scrapped this time?

DoTM has been working against the transport syndicate and trying to wipe out such practice since the past eight months, since the time of the previous government itself. However, we could not work on policy decisions due to the election code of conduct enforced due to the local, provincial and parliamentary elections. Similarly, policy level decisions could not be made after the election through the caretaker government. However, we expedited our plans to discourage transport syndicate with the formation of the new government and direction from the new leadership in the government. Personally, I was committed to wiping out transport syndicate from my first day at DoTM. I have already said that I will adopt ‘zero tolerance' approach to any type of syndicate in transport sector.

However, it has been reported that there are different forces actively lobbying for transport syndicate with the government and political leaders. Will this not hamper the DoTM's plan to remove syndicate system completely?

Bringing DoTM under the influence to allow transport syndicate is impossible. Meanwhile, the Ministry of Home Affairs (MoHA) has a bigger role in ending transport syndicate completely. In a bid to completely end transport syndicate, MoHA should assure effective security and declare existing transport committees and associations as illegal. Thus, MoHA should play a proactive role in eradicating transport syndicate. More importantly, political parties and their leaders should not promote transport syndicate as a political commodity. If we are able to get these assurances we will work at such a pace that the public will be able to experience syndicate free transportation industry within one year. However, our goal to wipe out transportation syndicate will be affected if this issue is politicised. It is true that some forces are actively trying to influence the government and party leaders to allow syndicate in transportation industry. However, people in power should not listen to such forces and should acknowledge that any type of syndicate in any sector is against the competitive development of the sector and country at large.

What do you have to say to those entrepreneurs who have been staging protests against government's move to end transport syndicate?

I have nothing to say. I am practicing things envisioned by the law and our law does not recognise transport committees and associations anymore. I do not have to consult with transport entrepreneurs while acting against the transport syndicate because I am implementing the law. However, I had called transport entrepreneurs for discussions and coordination on discouraging such anti-competitive practice seven months ago. However, they boycotted every meeting that was convened under my chairmanship. As laws are for all, I urge all transport entrepreneurs, committees and associations to operate as mandated by country's policy and law. However, if transport entrepreneurs breach the law, DoTM will not hesitate to take prescribed action.

However, the inability of the government to ensure effective means of public transportation in the country is also blamed for transport syndicate becoming strong. What do you have to say on this?

It is true that lack of government's own means of public transportation has been directly and indirectly promoting transport syndicate. However, the fact is our policies are still unclear on the role of the government in the public transportation sector. For any service delivery, the ultimate responsibility is of the government itself. So, the government should enter public transportation sector or at least remain in a standby position to start operating public transportation if private sector attempts to not follow government laws and start transport syndicate. However, the role of government in public transportation sector should be addressed by an effective policy soon.

A proposal to scrap existing transport committees and associations is said to have been tabled at the Cabinet. How optimistic are you the Cabinet will endorse such proposal?

We had discussions with MoHA on this issue earlier. However, I do not know whether or not the proposal has reached the Cabinet as it falls under the jurisdiction of MoHA. However, I don't think the government will have any problem in clearing the proposal as the entire government mechanism today is against transport syndicate. DoTM started acting against transport syndicate with support from MoHA, Office of the Prime Minister and Council of Ministers and the Ministry of Physical Infrastructure and Transport. Moreover, different parliamentary committees have directed the government to wipe out the syndicate system in the country's transportation sector.