July 6: For the first time in Nepal, the private sector of Nepal is preparing to establish a vehicle assembling plant.

Sundar Auto Engineering, a subsidiary of Sundar Yatayat Pvt Ltd, is preparing to set up the plant in the country.

Sundar Yatayat is also the first company to introduce electric buses for public transportation representing the private sector in Nepal. The company is making arrangements so that they can lay the foundation for the plant before August.

The electric vehicle assembling plant is set to be established in Butwal's Sainamina municipality.

China's Sichuan Guhang Automobile and UAE's SEC Group are said to make investments in establishing the plant. According to Bhesh Bahadur Thapa, chairman of the company, Sichuan Automobile will invest 47 percent while the share of SEC Group will be 46 percent and Sundar Yatayat’s stake will be 7 percent.

Sundar Yatayat confirmed that an agreement had been reached with these two companies for setting up an assembly plant during a program in November 2019. Although the company has been preparing to set up the plant since April last year, the work was hindered and could not proceed due to the prohibitory order, said Chairman Thapa.

According to him, Rs 3.6 billion is being invested as the initial phase for setting up the assembly plant. Investments would be added gradually as the work progresses. He said that preparations have been made to assemble 100 vehicles in the first year, 300 vehicles in the second year and 1000 vehicles annually from the third year onwards. "We plan to lay the foundation stone within 15 days," he said, adding, "We have requested the prime minister to attend the inauguration as the chief guest."

He informed that the foundation stone will be laid within August and the work will commence immediately. Preparations to assemble 100 vehicles within the next fiscal year 2078/79 have already been completed. According to him, Sainamina municipality is going to provide approximately 5.8 acres of land for the establishment of the assembly plant.

Mayor of Sainamaina municipality, Chitra Bahadur Karki informed that an agreement has been reached to lease the land to the company. According to him, the company has entered into an agreement with the municipality to pay Rs 600,000 annually.

The company has agreed to provide an ambulance to the municipality in the first year, a garbage truck in the second year and a bus to a local community school every year at a 33 percent discount. He also said that the company should deposit 1 percent of their profit in the accumulated fund of the municipality.

The decision to provide land to Sundar Yatayat was reached through an all-party meeting on June 30.

Chairman Thapa mentioned that they are planning to assemble electric jeep, car, van, ambulance and bus as well.