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Hydropower Projects Drive Surge in Forest Revenue

Kathmandu: Revenue collected by the Division Forest Office has increased more than fourfold after hydropower and transmission line projects paid higher fees for the use of government forest land and plantation-related activities.

The office collected Rs 116,350,28 in revenue in fiscal year 2024/25, while its revenue collection rose to Rs 53,653,136 in fiscal year 2025/26.

According to Division Forest Officer Basant Keshav Adhikari, out of the total revenue collected last fiscal year, the 65-MW hydropower project under construction on the Myagdi River alone paid Rs 52,940,341 for the use of government forest land and plantation-related activities.

Similarly, the Dandakhet-Rahughat 132-kV transmission line project paid Rs 194,881, while the Rahughat Hydropower Project paid Rs 517,913 in revenue for the use of forest land.

Of the revenue collected by the office, Rs 23,333,310 was deposited into the federal government’s Forest Development Fund. Likewise, Rs 4,544,075 was deposited as value-added tax (VAT), while Rs 29,421,320 was deposited into the provincial government’s treasury.

In addition to revenue generated from hydropower projects for the use of forest land, the office also generated income from forest products and medicinal herbs. The office said it sold 3,600 kilograms of various species of medicinal herbs, 30,000 bamboo shoots and 5,000 units of khuru during the last fiscal year.

Similarly, 135,540 cubic feet of timber from private forests and 13.93 chattas of firewood were sold.

According to the office, permission has been granted for the export of 1,100 kg of cliff honey, 520 kg of (Lycopodium clavatum Linn) Nagbeli powder, 80 kg of red mushrooms, 11 kg of rhododendron flowers, and 8 kg of juniper leaves, and revenue has been collected accordingly.

Jalasarokar