Traffic Department’s License System Disrupted for Two Weeks: Causes and Timeline for Resolution

The Department of Transport Management, which recently resolved the long-standing issue of carrying bulky driving license booklets by issuing around 2.75 million licenses, now faces a new challenge that has lasted for two weeks. Implementing a new system from the first day of the new fiscal year, starting on July 17 (Sawan 1), to “make transport-related services more user-friendly and organized,” the department has halted revenue collection activities, especially those related to licenses, for the past two weeks. However, in a press release issued on Wednesday, July 31 (Sawan 13), the department urged drivers with licenses nearing expiration within a year to renew them soon. The department also announced improvements to the system, enabling renewal and new license issuance through national ID numbers and online revenue payment.

“Services have not stopped everywhere,” said Director Keshav Khatiwada of the department. “It is natural to encounter issues when shifting to a new system. Work is progressing to resolve these problems where they have been identified, and any emerging issues will be addressed promptly.” According to him, all data up to July 17 (Sawan 1) have been entered and reconciled in the new system. The Ministry of Infrastructure Development also confirmed no major disruptions affecting service, with Krishna Raj Panth, the chief secretary of the ministry’s Infrastructure and Transport Division, stating, “Occasional issues naturally occur with a new system, and they are being resolved continuously.”

After the disruption was resolved in Dang, reliable sources revealed that services had actually been affected since Asar 26 (July 11), even before the new system was implemented on Sawan 1 (July 17). Problems arose during the transfer of data into the new integrated system and with the inclusion of the new tax structure. One official commented, “Service was suspended at the end of the fiscal year, briefly reopened during the last three days of Asar (mid-July), but then stopped again.” The department reportedly acknowledged the issue only on July 20 (Sawan 4). The new system was initially deployed with a notice stating it would take about a week to be fully operational—this notice, posted on the department’s website and Facebook page, has since been removed.

Based on that notice, the Bagmati Province’s Ministry of Industry, Tourism, Labor, and Transportation issued a service suspension alert, which still remains on their website. The new system has created tension among ministry and department employees. On Wednesday, staff in Dang received reassuring news regarding relief. Senior officer Taraprasad Sharma of the Dang Traffic Management Office confirmed that license renewals resumed on Wednesday. “Our office has collected Rs 60,000 to 70,000 in taxes,” Sharma stated enthusiastically. “We expect to resume issuing new licenses starting Thursday.”

Federal officials also confirmed that operations have restarted in Hetauda. However, Bimal Bhattarai, head of the Hetauda Transport Management Office, reported that although services should be provided online without requiring in-person visits, complaints persist. “Clients still experience technical difficulties with license-related tasks, with some even submitting screenshots of errors,” he explained. “While some services have resumed, certain functions in the new system remain unstable.”

Some officials warned that the online system’s ongoing rollout may soon face interruptions, and in certain locations, even revenue details related to license renewals could be missing. Why is there relief in Sudurpaschim and Bagmati provinces? The new system implemented by the federal government incorporates new tax rates introduced by all provinces. Since Sudurpaschim Province has yet to approve its budget, it continues to operate under the old tax rate system, so its transport offices have not been affected. Revenue collection continues following previous legal provisions. Bhuvan Joshi, head of the Dhangadhi Transport Management Office, stated, “We are currently issuing permits for vehicle inspection, routes, ownership transfer, and renewals manually, while licensing services continue as before.”

On Wednesday, Kanchanpur Transport Management Office issued a notice stating that, due to incomplete system upgrades, all services except for manual permits and licenses are suspended. Transport offices in Bagmati Province continue to process vehicle-related services because the federal government is upgrading the system used there, according to officials. However, license-related activities remain halted. Keshav Kumar GM, head of the Driving License Office in Ekantakuna, Lalitpur, said, “We have been able only to distribute printed licenses; no other work has proceeded.” He added, “I heard the department’s team has been working 18-20 hours a day to solve the problems; we hope renewals can be completed within 1 to 2 days.”

Is a fine applicable if services were unavailable? Many customers whose licenses or vehicle documents expired during the two-week disruption have not been able to pay revenue. As the government might impose fines, clients have expressed concerns on the department’s Facebook page and in person at offices. Keshav Kumar GM, head of the Driving License Office in Ekantakuna, Lalitpur, acknowledged this could be a complex issue. He stated, “We have communicated with the department and ministry about exempting revenue for days when service was unavailable and adjusting license expiry dates,” but noted there are legal complications. Director Keshav Khatiwada said he cannot comment on this matter, adding, “Such decisions will be made by the ministry and department.”

The department reported that the integrated new system has been connected with the Citizen App, the national ID database, and mobile service providers’ systems, aiming to facilitate easier service delivery and access.