Kathmandu – The Indian Embassy in Kathmandu was scheduled to hand over school buses last Saturday. 

However, the event was postponed after it was found that the imported buses did not match the tender requirements.

In October 2024, the Embassy had called for tenders to purchase 85 school buses with a seating capacity of 32 plus D (33 seats including the driver). 

Several companies in Nepal participated in the tender, which specifically required large buses.

The Embassy selected VE Commercial Vehicles Limited (Volvo Eicher) as the supplier, as it had offered the lowest bid.

 But according to customs documents, the company imported only mini buses with a capacity of 15–25 seats.

The customs clearance for these 25 buses was done on June 6, and the declaration mentioned the model as 'Starline 10.75 E 32+1 seater school bus'. 

However, the buses were taxed as mini buses. The customs document (M57727) shows duties applied at the mini bus rate: 30 percent customs duty, 35 percent excise duty, 9 percent road maintenance charge, and 13 percent VAT.

If these were large buses, the excise duty would have been only 5 percent.

Since the buses were purchased directly from the manufacturer by a diplomatic mission, only the tax rates were listed, and no payment was required, as diplomatic agencies are exempt from such taxes.

Though some ambulances were handed over during the scheduled event, the buses were not handed over due to this issue.

The tender had received offers from:

VE Commercial Vehicles – Indian Currency Rs 10.48 lakh per bus

Ashok Leyland – Indian Currency Rs 12.68 lakh per bus

Tata Motors – Indian Currency Rs 11.19 lakh per bus

SML Isuzu – Indian Currency Rs 10.86 lakh per bus

VE Commercial Vehicles won the tender with the lowest price.

The controversy arose because the buses delivered do not meet the technical specifications mentioned in the tender, which clearly required 33-seater buses.

Bus Specifications Required by the Indian Embassy

Model: 32 plus D seater (total 33 seats)

Engine: 4-cylinder, minimum 2900 cc

Power: At least 110 HP

Torque: At least 275 Nm

Steering: Power

Gearbox: 5 forward, 1 reverse

Wheelbase: 3300 mm

Length: 6300 mm

Width: 2000 mm

Height: 2600 mm

Turning Radius: No more than 9 metres

GVW: Minimum 6500 kg

Seating Capacity: 32 plus D (33 total)