The government will be issuing a working guideline on leasing state-owned land as the provision of granting use rights has been scrapped.

About three years ago, the administration of Madhav Kumar Nepal had cancelled the provision after irregularities were seen. At the same time, the Commission for Investigation of Abuse of Authority (CIAA) had directed the government last year to provide use rights only after introducing an act.

The Ministry of Land Reforms and Management (MoLRM) has prepared a draft of the guideline on giving government land on lease after the current government too ordered it to formulate necessary provisions to ensure such land is put to productive use.

“An initial draft has been prepared and circulated to different departments of the ministry for their opinion,” said Jit Bahadur Thapa, joint secretary at the MoLRM. As per the draft, the government has made provisions for giving state-owned land on lease to organizations that are working with non-profit motives such as building schools, temples, orphanages and state-owned enterprises.

“There is also a strong opinion about giving such land for commercial use too by charging a higher fee,” said Thapa, who is also the coordinator of the committee formed to formulate the guideline. “We will reach a conclusion on whether to give such land for commercial use after holding consultations with stakeholders.”

The government has not leased its land for commercial use so far. State-owned lands have been given for use to more than 300 organizations so far, according to the ministry. A maximum of 1,100 ropanis of land have been granted to non-profit organizations, said the ministry.

The government had scrapped the policy on giving government-owed land for different purposes after they were found to have been used for running sand mines or operating shops, said Thapa.

As per the draft of the guideline, those who have leased government land will have to renew their contract. “A provision has been made requiring users to submit status reports to the government annually,” said Thapa.

He added that the leaseholder would be barred from using the land for purposes other than what is stated in the contract. “Otherwise, the lease will be cancelled.” The guideline will also set separate criteria for land in urban areas and in rural areas, according to Thapa.

Earlier, the government had been giving its land for use based on the Use Right Policy 2005. As per the policy, a committee headed by the chief district officer would recommend to the government to grant use rights to a certain organization. The cabinet would make the final decision.

source: The Kathmandu Post,16 Jan 2013