The work operation of the board and organizations under it are subject to the constitution order of the board and corresponding rules established which are Forest Products Development Board Employee Service Condition Regulations 2072; Forest Product Pricing and Sales Rules 2060 and the prevailing Financial Rules and Regulations. Formulation of rules related to financial administration scoping to the work space of the Board has also been initiated.

The Projects operating under the board

Sagaranath Forest Development Project

To help in the supply of forest products by the establishment of production forest by augmenting fast growing and high yielding tree species in the degraded forest areas; and to provide maximum employment opportunities to the local rural community and widen knowledge, skill and technology of forest management Sagarnath Forestry Development Project was established with the loan grant of Asian Development Bank.

Located in Sarlahi and Mahottari Districts, the Project is spread along south of the East-West Highway from the Bhavsi River in the South to the Bagmati River in the West is the part of the national forest area. The project area is approximately 13,500 hectares. Afforestation program was carried out to resolve then problems of firewood shortage occurring in the country by prioritizing plantation of fast growing and high yielding (per unit area) tree species. After trial plantation of approximately 20 species of tree, Eucalyptus camaldulensis was inferred as suitable for that area and extensively planted. This project currently accommodates 55 percent Eucalyptus, 45 percent sissoo, teak and small amount of other species. Till now, the plantation area is spread across 10,447 hectares.

-          Establishment Year:              2035 BS

-          Project Location:                   Sarlahi, Mahottari and Rautahat

-          Project Spread (Gross):        13,512 hectares

-          Plantation Area:                    10,447 hectares

-          Plantation:

-          Eucalyptus:                            655 Ha           

-          Sissoo:                                    105 Ha

-          Teak :                                      55 Ha

-          Khayer (Cutch Tree):            35 Ha

-          Other Species:                        45 Ha

-          Sal (Shorea robusta)

Regeneration:                        105 Ha

-          Natural Forest:                      35 Ha

-          Preserved Area

(Roads, River, Rivulets etc): 55 Ha


Financial Investment In Establishment Phase

·         Asian Development Bank                   38,08,238     - U.S Dollars (2035 BS to 2048 BS)

·         OPEC Fund                                          16, 93,760     - U.S Dollar (2035 BS to 2043 BS)

·         Asian Development Bank Loan      4,20,25,000     - NRs (2049 BS to 2053 BS)

·         The Government of Nepal (Grant) 2,01,35,000    - NRs (2053 to 2058)

·         Revenue 505 Grant                         1, 65,40,000     - NRs (F.Y. 2067.68)

·         Rs 5 million Revenue is being paid to the Government of Nepal each year



Ratuwamai Plantation project

The Project was established to materialize Production Forest by afforesting the area spreading across Kankai Mai River in the east, Ratuwa River in the E-W Highway in the south and traces of Chulaculi of Illam District in the north, which were under the pressure of encroachment and degradation, in the fiscal year 2035/036 BS, with the investment of Forest Products Development Board's own fund. From the total area of 6,367 hectares delineated in the aforesaid boundaries, encroachments from the settlements (gaons) of Kamal, Barahgothe, still remaining to be evacuated, the total working area of the Project has been established as 2,713 hectares only in the evacuated area.

Though the government, by the decision of 2046/06/09 handed over the Project area to District Forest Office, Jhapa to operate it under Terai Community Program, the requisite to strength conservation part and necessary timely silvicultural operations, the area was reassigned to the Board by then government's decision on 2051/06/07; and then after, conservation of the plantation area, silvicultural operations and sales of forest products are being carried out.

-          Establishment Year:              2035 BS

-          Project Location:                   Kerakha, Jhapa district

-          Project Spread (Gross):        2,713 hectares

-          Plantation Area:                    2,240 hectares

-          Eucalyptus:                            415 Ha           

-          Sissoo:                                    105 Ha

-          Teak    :                                   95 Ha

-          Khayer, Kadam:                     35 Ha

-          Other Species:                        95 Ha

-          Sal (Shorea robusta)

Regeneration:                        145 Ha

-          Preserved Area

(Roads, River, Rivulets etc): 145 Ha