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Kathmandu, Jan 24: The Department of Transport Management has extended the embossed number plate contract by three years, pushing the deadline to mid-December 2028, a move expected to cost the department around Rs 1.5 billion. Officials said slow progress and losses caused by damage during last year’s Gen Z-led protests forced the extension.

A fire during the September protests destroyed the DoTM headquarters, warehouses, and printing equipment, making more than 850,000 plates unusable. Around 680,000 plates had already been handed over to the department, while the rest remained with the contractor, Decatur Tiger IT, a US-Bangladesh joint venture.

After negotiations, the department agreed to bear the loss for damaged plates already received, while the contractor will continue installation under the revised timeline. Officials said contract clauses compelled the extension, as up to 95 percent of costs must be paid even if targets are missed due to administrative delays.

Signed in 2016, the project aimed to cover 2.5 million vehicles in five years. Fewer than 100,000 vehicles have been fitted so far. Of the 10 required RFID gates, only two have been built.

People’s News Monitoring Service