The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has circulated instructions to all local levels to establish and operate land banks in accordance with the new procedure. The initiative is intended to implement Nepal’s land-use classification system, maximize productive use of land and increase productivity by bringing privately owned land that is unused or being used below its potential into productive use under defined conditions and facilities.

The Land Bank (Establishment and Operation) Procedure, 2083 was approved by the Council of Ministers on 2083/03/15 using authority provided under Section 33 of the Land Use Act, 2076. The notice states that the procedure has also been registered with the Ministry of Law, Justice and Parliamentary Affairs in accordance with Section 24 of the Legislation Act, 2081, completing the required legal process for implementation.

Under the framework, local governments are expected to set up and operate land banks so that land currently lying idle or underutilized can be made available for productive purposes under prescribed arrangements. The ministry’s Planning, Monitoring and Evaluation Division requested that the instructions be circulated to local levels, and the procedure has been published on the ministry’s website at https://molcpa.gov.np.