Enabling Policies to Support Forest Farm Producer Organization Businesses IUCN, Nepal Presented By, Harihar Thapa FFF Nepal Program Federation Of Nepal Cottage and Small Industries

Context Context The legislation has assigned enough rights, roles and responsibilities to Local Governments to regulate and facilitate community-based forest; farm and forest-based micro-enterprise and cooperatives at local/community level The micro-enterprise and cooperatives can be registered at the office of Local Governments The Local government has responsibilities to formulate policy, plan and program to promote micro-enterprise and cooperatives

Contribution of micro small enterprise sector Micro small enterprise sector contributes to following national economic sector; 90% of the total industrial GDP 80% of the industrial employment 70% 0f the total national export

MSME Definition Types of Industry Fixed Assets/Turn over No. of Employees Micro Industries Up to Rs. 5 lakh (5 Hundred Thousand) , excluding land and Building Annual Turnover less than 50 Lakhs(5 Million) Electricity consumption below 20 Kilowatt Up to 9, self employed and self managed Cottage Industries Based on traditional skill and technology Labour , specific skill , local raw materials, local technology, art and culture based Electricity consumptions below 10 kilo watt Small Industries Up to 10 crore (One Hundred Million) fixed asset Medium Industries More than Rs. 10 Crore (100 million but less than Rs 25 Crore (250 million ) fixed asset Big Industries More than 25 Crore (250 Million) fixed asset

Opportunities: Industrial Act- 2017 Registration and Establishment No Registration fee for enterprise registration Income Tax Free for initial 5 years (from the registration date) Industries will not be nationalized Establishment of one door service centre Provision for specific Economic zone Provision for Industrial Promotion committee in local level Provision for industrial village in each rural/urban municipalities Provision for providing forest land in lease to forest based industries

Opportunities: Industrial Act- 2017 Provision for Fund Micro, Cottage and Small Enterprise Development Fund Technology Development Fund Women Entrepreneurship Development Fund Provision for women Entrepreneurs Loan for Women Entrepreneurs( without collateral up to Rupees 5,00,000.00 ) Provision of loan for exporting the products

Opportunities….. Agroforestry Policy (currently in drafting process) Forest act has included provision to establish enterprise and ecotourism inside community forest

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