Water laws in Nepal

Water Laws in NepalLaws Relating to Drinking Water, Sanitation,Irrigation, Hydropower and Water Pollution

February 2005WaterAid Nepal

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Laws Relating to Drinking Water, Sanitation,Irrigation, Hydropower and Water Pollution

Water Laws in Nepal

February 2005

iii

Table of Contents

Preface .................................................................................................................................. viiList of Acronyms .................................................................................................................. viiiSummary of Relevant Nepali Laws in Chronological Order ................................................... ix

Chapter 1: Introduction ........................................................................................................... 11.1 Introduction ..................................................................................................................... 21.2 International Law ............................................................................................................. 31.3 Impending New Legislation ............................................................................................. 4

Chapter 2: Drinking Water ...................................................................................................... 52.1 Policy and Legislation ...................................................................................................... 62.2 The Right to Drinking Water ........................................................................................... 82.3 State Ownership of Water Resources .............................................................................. 82.4 Priority of Water Uses ...................................................................................................... 92.5 Management of Water Supply ...................................................................................... 102.6 Licensing of Water Use .................................................................................................. 10

2.6.1 Who Must Obtain a Licence? ........................................................................... 102. 6.2 How to Obtain a Licence .................................................................................. 112.6.3 Processing of Licence Applications .................................................................... 122.6.4 Rights of Licensee ............................................................................................. 122.6.5 Duties of Licensee ............................................................................................. 132.6.6 Cancellation of Licence ..................................................................................... 14

2.7 Drinking Water User Associations .................................................................................. 142.7.1 Who May Form a Drinking Water User Association? ........................................ 142.7.2 Statute of Drinking Water User Association ...................................................... 152.7.3 Procedure for Registration of Drinking Water User Association ........................ 152.7.4 Rights of Drinking Water User Associations ...................................................... 152.7.5 Functions and Duties of Drinking Water User Associations .............................. 16

2.8 Obligations of Consumers of Drinking Water ............................................................... 16

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Chapter 3: Water Supply System .......................................................................................... 193.1 Drinking Water Suppliers ............................................................................................... 20

3.1.1 Duty to Supply Water ........................................................................................ 213.1.2 Duty to Maintain Quality Standards ................................................................. 213.1.3 Duty not to Pollute ............................................................................................ 213.1.4 Duty to Repair and Maintain ............................................................................. 223.1.5 Duty to Compensate ......................................................................................... 223.1.6 Power to Impose Conditions of Service ............................................................. 223.1.7 Power to Reduce or Cease Service .................................................................... 223.1.8 Power to Impose a Service Charge .................................................................... 23

3.2 Nepal Water Supply Corporation ................................................................................... 233.2.1 Functions and Duties ......................................................................................... 243.2.2 Power to Impose Fees and Charges .................................................................. 243.2.3 Power to Cease Service ..................................................................................... 243.2.4 Power to Enter House and Land ........................................................................ 253.2.5 Power to Lay Pipelines ...................................................................................... 25

3.3 Local Bodies ................................................................................................................... 253.3.1 Village Development Committee ...................................................................... 253.3.2 Municipality ....................................................................................................... 273.3.3 District Development Committee ...................................................................... 27

3.4 Department of Water Supply and Sewerage ................................................................. 28

Chapter 4: Sanitation ............................................................................................................ 31

4.1 Policy and Legislation .................................................................................................... 324.2 The Right to Sanitation .................................................................................................. 324.3 Sanitation Services ......................................................................................................... 33

4.3.1 Local Bodies ....................................................................................................... 334.3.2 Solid Waste Management and Resource Mobilization Centre .......................... 354.3.3 Nepal Water Supply Corporation ...................................................................... 354.3.4 Ministry of Physical Planning and Works .......................................................... 36

4.4 Obligations of Users of Sanitation Services ................................................................... 36

Chapter 5: Irrigation .............................................................................................................. 395.1 The Policy and Legislation ............................................................................................. 405.2 The Right to Use Water for Irrigation ............................................................................ 405.3 Traditional Farmer Managed Irrigation Systems ............................................................ 41

5.3.1 The Priority in which Landowners are entitled to Irrigate ................................. 41

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5.3.2 Construction of Dams and Irrigation Channels ................................................. 415.3.3 Repair of Irrigation Channels ............................................................................. 42

5.4 Irrigation Water User Associations ................................................................................. 425.4.1 Who May Form an Irrigation Water User Association ....................................... 425.4.2 Statute of Irrigation Water User Associations .................................................... 435.4.3 Procedure for Registration of an Irrigation Water User Association .................. 435.4.4 Executive Committee and General Members of Irrigation

Water User Associations .................................................................................... 435.4.5 User Coordination Association .......................................................................... 445.4.6 Power, Functions and Duties of Irrigation Water User Associations .................. 445.4.7 Provision of Irrigation Services to a User ........................................................... 455.4.8 Transfer of Irrigation System to Irrigation Water User Association .................... 465.4.9 Joint Management by HMG and Irrigation Water User Association ................. 475.4.10 Project Committee ............................................................................................. 475.4.11 Monitoring of Irrigation Systems and Reporting ............................................... 48

5.5 Obligations of Users of Irrigation Services ..................................................................... 48

Chapter 6: Hydropower ......................................................................................................... 516.1 The Policy and Legislation ............................................................................................. 526.2 Right to Use Water for Hydropower ............................................................................. 526.3 Licensing of Hydropower ............................................................................................... 53

6.3.1 Who Must Obtain a Licence ............................................................................. 536.3.2 How to Obtain a Licence .................................................................................. 536.3.3 Processing of Licence Applications .................................................................... 556.3.4 Financial Incentives for Licensees ...................................................................... 566.3.5 Rights of Licensee ............................................................................................. 576.3.6 Duties of Licensee ............................................................................................. 576.3.7 Cancellation of Licence ..................................................................................... 58

6.4 Role of the State ............................................................................................................ 586.5 Royalty Sharing with Local Bodies ................................................................................. 59

Chapter 7: Acquisition and Compensation ........................................................................... 61

7.1 The Right to Property .................................................................................................... 627.2 The Right to Acquire Property ....................................................................................... 62

7.2.1 Acquisition for the Utilization of Water Resources ............................................ 627.2.2 Acquisition for Drinking Water and Sanitation .................................................. 637.2.3 Acquisition for Hydropower .............................................................................. 63

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7.3 The Right to Compensation ........................................................................................... 647.4 Compensation Fixation Committee ............................................................................... 65

Chapter 8: Water Pollution .................................................................................................... 678.1 Water Pollution Control Law ......................................................................................... 68

8.1.1 Pollution of Water Resources ............................................................................ 688.1.2 Pollution of Drinking Water .............................................................................. 698.1.3 Pollution of Water by Solid Waste .................................................................... 698.1.4 Pollution by Irrigation ........................................................................................ 708.1.5 Pollution by Hydropower .................................................................................. 70

8.2 Industrial Pollution ......................................................................................................... 708.2.1 Prohibition on Industrial Pollution ..................................................................... 708.2.2 Pollution Control Certificate .............................................................................. 708.2.3 Permission to Establish an Industrial Enterprise ................................................. 71

8.4 Environmental Pollution ................................................................................................. 728.4.1 Prohibition on Environmental Pollution ............................................................. 728.4.2 Initial Environment Examination and Environmental Impact Assessment .......... 73

References ........................................................................................................................ 75

Endnotes ........................................................................................................................ 77

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Preface

Water is life, for people and for the planet. It is absolutely essential to the well-being of humankindand a basic requirement for the healthy functioning of all the ecosystems. The right to water isindispensable for leading a life in dignity, and is a prerequisite for the realization of other human rights.The human right to water entitles everyone to sufficient, safe, acceptable and affordable water forpersonal and domestic uses.

On 26 November 2002, this right was recognized by the UN Committee on Economic, Social andcultural Rights when it announced a General Comment on the Right to Water. The General Commentgives the Committee's interpretations of the implications of the new right to water. In summary, theright to water puts an obligation on governments to progressively extend access to sufficient, affordable,accessible and safe water supplies and to safe sanitation services. This was a milestone event, markingthe importance of water services in the development of individuals, communities and nations. Whilepreviously water had been implicitly a right, through the rights to health, education, and the rights ofthe child, this new General Comment explicitly focuses on the right to water, and the responsibilitiesand obligations that governments have in delivering water services to all.

Water laws play an important role in determining the availability of water, and in the social, economicand institutional aspects of water governance and development since provisions for, and limitationson, the institutional arrangements affect how water is used, developed and managed.

The purpose of this Report is to provide an understanding of the various Acts and Regulations relatedto drinking water and sanitation, irrigation, hydropower and water pollution in Nepal. By presenting aconsolidated summary of the various water Laws and Regulations into one unified Report, thispublication attempts to provide an informed perspective on the most important clauses, rules andrequirements of key water legislation, and is expected to act as a catalyst to further stimulate thinkingand debate to influence water rights of citizens.

We would like to thank Mr. Basanta Adhikari, Pro-public for undertaking this study, Ms. Susan Sellarsfor editing the Report into the present form, Mr. Shiva Bisangkhe, Nepal Water ConservationFoundation, and to Mr Rabin Lal Shrestha, WaterAid Nepal for his coordination and support duringthe study period.

Sanjaya AdhikaryCountry RepresentativeWaterAid Nepal

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List of Acronyms

BS: Bikram Sambat (Nepali Calendar)CEDAW: Convention on the Elimination of all forms of Discrimination against WomenCRC: Convention on the Rights of the ChildDDC: District Development CommitteeDoI: Department of IrrigationDWRC: District Water Resource CommitteeDWSS: Department of Water Supply and SewerageDWUA: Drinking Water User AssociationEIA: Environmental Impact AssessmentHMG: His Majesty’s GovernmentHMGN: His Majesty’s Government of NepalICCPR: International Covenant on Civil and Political Rights, 1966ICESCR: International Covenant on Economic, Social and Cultural Rights, 1966IEE: Initial Environmental ExaminationIWUA: Irrigation Water User AssociationLICSU: Low Income Consumer Support UnitLSGA: Local Self Governance Act 1999 (2055 BS)NGO: Non Governmental OrganisationNKP: Nepal Kanoon Patrika (Nepal Law Reporter)NWSC: Nepal Water Supply CorporationSWMRMC: Solid Waste Management and Resource Mobilization CenterUDHR: Universal Declaration of Human RightsVDC: Village Development CommitteeWOU: Water Utility OperatorWUA: Water User Association

ix

SN

1.

2.

3.

4.

5.

6.

Act or Regulation

Essential Commodity Protection Act

1955 (2012 BS)

Muluki Ain 1963 (2020 BS)

Solid Waste (Management and Resource

Mobilization) Center Act 1987 (2044 BS)

Solid Waste (Management and Resource

Mobilization) Regulation 1989 (2046 BS)

Nepal Water Supply Corporation Act

1989 (2046 BS)

The Constitution of the Kingdom of

Nepal 1990 (2047 BS)

Areas Addressed

~ Deems drinking water an essential

commodity and strictly protects

drinking water.

~ Prohibits any unauthorised use or

misuse, stealing, damaging etc. of

drinking water.

~ Sets out the order of priority of use

of water for irrigation.

~ Regulates traditional farmer

managed irrigation systems.

~ Establishes the Solid Waste

Management and Resource

Mobilization Center as the

responsible authority for the

management of solid waste.

~ Deals with the pollution of water by

solid waste.

~ Deals with the collection,

transportation and disposal of solid

waste.

~ Deals with the provision of public

toilets and bath houses.

~ Establishes the Nepal Water Supply

Corporation as the perpetual,

autonomous government controlled

corporation responsible for the

supply of drinking water.

~ Prohibits certain acts and provides

penalties/punishment for violation.

~ Guarantees the right to life and

property.

~ Provides for the acquisition of

property under certain circumstances

and for compensation.

TABLE 1 Summary of Relevant Nepali Laws in Chronological Order

x

7.

8.

9.

10.

Water Resource Act 1992 (2049 BS)

Electricity Act 1992 (2049 BS)

Industrial Enterprises Act 1992 (2049 BS)

Water Resource Regulation 1993 (2050 BS)

~ The umbrella Act governing water

resource management.

~ Declares the order of priority of water

use.

~ Vests ownership of water in the State.

~ Provides for the formation of water

user associations and establishes a

system of licensing.

~ Prohibits water pollution.

~ Governs the use of water for

hydropower production.

~ Establishes a system of licensing.

~ Sets out the powers, functions and

duties of a licence holder.

~ Provides certain financial incentives for

licence holders.

~ Sets out the powers of the

government.

~ Requires permission for the extension

and diversification of environmentally

sensitive industries.

~ Provides financial incentives for

industrial enterprises that minimise

harmful effects on the environment.

~ The umbrella Regulation governing

water resource management.

~ Sets out the procedure to register a

Water User Association and to obtain

a license.

~ Establishes the District Water Resource

Committee.

~ Sets out the rights and obligations of

Water User Associations and licence

holders.

~ Deals with the acquisition of house

and land and compensation.

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11.

12.

13.

14.

15.

Electricity Regulation 1993 (2050 BS)

Environment Protection Act 1996 (2053 BS)

Environment Protection Regulation 1997

(2054 BS)

Drinking Water Regulation 1998 (2055 BS)

Local Self Governance Act 1999 (2055 BS)

~ Sets out the procedure for obtaining a

license.

~ Deals with the acquisition of house and

land and compensation.


duties of licence holders.

~ Requires certain persons/bodies to

conduct an EIA or IEE.

~ Deals with the prevention and control of

pollution.

~ Lists the water related projects required

to conduct an EIA or IEE.

~ Deals with the control of water pollution

and pollution control certificate

~ Regulates the use of drinking water.

~ Provides for the formation of Drinking

Water User Associations and sets out

the procedure for registration.

~ Deals with licensing of use drinking

water.

~ Deals with the control of water pollution

and maintenance of quality standards

for drinking water.

~ Sets out the conditions of service

utilization by consumers.

~ Provides for the acquisition of house

and land and compensation.

~ Establishes a decentralised governance

structure


duties of the VDC, Municipality and

DDC in relation to water and sanitation.

~ Sets out which natural resources are assets

of local bodies and empowers local bodies

to levy a natural resource tax.

xii

16.

17.

Local Self Governance Regulation 1999

(2056 BS)

Irrigation Regulation 2000 (2056 BS)


duties of VDC, Municipality and DDC in

relation to water and sanitation.

~ Establishes the procedure for the

formulation of water related plan and

project implementation.

~ Deals with Irrigation Water User

Associations and the transfer of projects

to Irrigation Water User Associations.

~ Provides for a joint management system

by HMGN and Irrigation Water User

Association.

~ Deals with Irrigation and River Control

Committee

~ Sets out the conditions of service

utilisation.

~ Sets out the obligations of user of

irrigation and provides for service

charges.

~ Deals with the protection, repair and

maintenance of irrigation systems.

Chapter Introduction1 Introduction1

C H A P T E R 1Introduction

2

1.1 IntroductionThe term water laws refers to both municipaland international laws, norms, values andprinciples which protect the right of people toaccess to water resources for variouspurposes. General speaking, water laws arerules enacted or provided by a legitimateauthority that regulate the sectoral use ofwater. The search for principles governingwater resources are motivated by twobasic concepts:1. Concept of Development Need: To

ensure economic development byproviding sufficient water for drinking,health and sanitation, irrigation,electricity and industry.

2. Concept of Pursuit of Justice: To ensurethe equitable and reasonable allocation,distribution and utilization of waterresources.

In this context water law plays a principalrole in:(i) protecting the right to water as a basic

human right;(ii) ensuring access to water for drinking,

health and sanitation;(iii) ensuring access to water for food

production;(iv) meeting the water needs of industry and

commerce;

(v) resolving and preventing disputes overthe allocation, distribution and use ofwater resources;

(vi) facil itating the implementation ofeffective water policy; and

(vii) ensuring water quality by controllingpollution.

The overall purpose of this publication is toprovide a consolidated summary of the mostimportant contents of the various laws ofNepal that influence the rights of citizensto water.

Specifically, this publication aims to:(i) Bring together in one document the most

important clauses, rules and requirementsof the various legislation;

(ii) Provide a clear definition of theentitlements, roles, processes, obligationsetc. stated in the laws;

(iii) Provide a tool for civil society and othersto analyse the existing legislation for anygaps and omissions, inconsistencies, out-of-date aspects and ambiguities and thusform the basis for advocating for legalreforms; and

(iv) Provide these laws in English so thatinternational jurists and others may alsohave access to their content.


3

It is hoped that this publication will be usefulto a range of users including:� staff of water agencies –HMGN, Donors,

(I)NGOs and the private sector� staff and members of VDCs, DDCs and

Municipalities� members of community Water User

Associations� politicians, policy makers and policy

advocates� lawyers, law professors and students� researchers� citizens

1.2 International LawUnder international law, the right to water isimplicitly and explicitly protected as a humanright. The Universal Declaration of HumanRights 1948 (UDHR) recognises the inherentdignity and the equal and inalienable rights ofall human beings.1 The UDHR goes on toprovide that “everyone has the right to lifeand security”.2 As water is a basic need forhuman existence (for drinking, to producefood and for sanitation/health) it can beequated to the right to life which cannot besecured in the absence of the right to water.

The International Covenant on Economic,Social and Cultural Rights (ICESCR) 1966 andthe International Covenant on Civil andPolitical Rights (ICCPR) 1966 also implicitlyrecognises the right to water as an integralcomponent of the right to life, to an adequatestandard of living, to health, to housing andto food.3

The right to access to water is explicitlyprotected under the Convention on theElimination of all Kinds of Discriminationagainst Women (CEDAW) 1979 and theConvention on the Rights of the Child(CRC) 1989.

Article 14 (2)(h) of the CEDAW 1979 providesinternational protection of right “to enjoyadequate living conditions, particularly inrelation to housing, sanitation, electricity andwater supply”.

Article 24 of the CRC 1989 also explicitlyrecognises right of the child “to combatdisease and malnutrition…through theprovision of adequate nutritious foods andclean drinking water, taking into considerationthe dangers and risks of environmentalpollution”.

International humanitarian law applicable inarmed conflict, in particular, the 1977 Protocolto the Geneva Convention Relating to theProtection of Victims of Non InternationalArmed Conflict, prohibits starvation of civiliansas a method of war and, accordingly, explicitlyprotects drinking water supply systems andirrigation systems.4

In addition to these rights, the right to ahealthy environment has received increasedrecognition under international environmentallaw. Such right includes various substantiveelements, such as the right to food and water,sanitation etc. The International Conference

on Water and Environment 1992 adopted astatement acknowledging “the basic right ofall human beings to have access to cleanwater and sanitation at an affordable price”.

Nepal is signatory to all of the aboveinternational instruments and, as a signatory,is bound to uphold the provisions by enactingNational legislation to bring them into effect.

Nepal is also a signatory to the MillenniumDevelopment Goals as follows:� Millennium Development Target: To halve

by 2015 the proportion of people withoutaccess to safe drinking water in 1990(signed in Stockholm in 2000).

� Millennium Development Target: To halveby 2015 the proportion of people withoutaccess to hygienic sanitation in 1990(signed in Johannesburg in 2002).

1.3 Impending NewLegislationAs this publication is prepared, HMG hasannounced its intention to introduce newlegislation that will make fundamental changes

to the legal arrangements for water supply,especially in the Kathmandu Valley. Briefly,these will establish three new agencies:1. Kathmandu Valley Water Authority:

To own the assets of the water supplysystem and make policy for the effectiveuse of water resources in the Kathmanduwater basin.

2. Water Utility Operator:To manage the operations, maintenanceand expansion of the water supply systemin the Kathmandu Valley and to ownthose assets such as vehicles, computersetc. required to operate the water supplysystem and to employ staff. This agencywill be established as a private company.

3. National Water Regulatory Board:

To approve tariffs and regulate otherfundamental aspects of water supplythroughout the Kingdom of Nepal.

It is proposed that the new legislation will alsoestablish a Low-Income Consumer SupportUnit (LICSU) within the WOU in order toensure the creation of an institutionalmechanism to provide services to members oflow income groups at the community level.


4

Chapter Drinking Water2 Drinking Water2

6

C H A P T E R 2Drinking water

2.1 Policy and LegislationHMGN has recently prepared the Rural WaterSupply and Sanitation National Policy 2004(2060 BS), the Rural Water Supply andSanitation Strategy 2004 (2060 BS) and theRural Water Supply and Sanitation SectoralStrategic Action Plan 2004 (2060 BS). Thesepolicy and strategy documents recognise thatall people have a right to access to basic watersupply and sanitation services and that theseservices are necessary for socio economicdevelopment and to combat waterbornediseases.

The main legislation in relation to drinkingwater in Nepal is the Water Resource Act 1992(2049 BS). This Act is an umbrella Act,governing not only drinking water, but otheruses of water and overall water resourcemanagement in Nepal. The Act gives priorityto the right to use water for dinking purposesover any other domestic or commercial use.There are two regulations under the Act, fordrinking water purposes the Water ResourceRegulation 1993 (2050 BS)and the DrinkingWater Regulation 1998 (2055 BS).

The Water Resource Regulation 1993 (2050BS) is an umbrella Regulation covering all usesof water and providing procedural mechanisms

for the implementation of the Water ResourceAct 1992 (2049 BS). The Regulation covers theformation of Water User Associations andDistrict Water Resource Committees, licensing,provides a dispute settlement mechanism inrelation to water use service charges, sets outthe process to be followed by the State inrelation to land acquisition and compensationand provides some forms in the Schedules tothe Regulations for certain administrativeprocedures.

The Drinking Water Regulation 1998 (2055BS) specifically deals with drinking water andsanitation as it affects drinking water.5 Amongother things, this Regulation regulatesDWUAs, the quality of drinking water anddrinking water suppliers.

The other major pieces of legislation governingdrinking water are the Nepal Water SupplyCorporation Act 1989 (2046 BS). This Actestablishes the NWSC as a public corporationresponsible for providing clean drinking waterand sewerage services to the urban public. Thescope of work of the Corporation has beendetermined by HMG by notification in theGazette. This Act establishes the right ofpeople to drinking water and sanitation and

7


imposes a duty on the State (through theCorporation) to provide drinking waterand sanitation.

Drinking water is also touched on by otherlegislation not necessarily specifically enactedfor that purpose. The Local Self GovernanceAct 1999 (2055 BS), which primarily dealswith the decentralisation of government, alsogives local bodies some responsibility inrelation to the utilization, conservation andmanagement of water resources and the

maintenance of sanitation facilities andwaste management.

The Act and its regulations make local bodies(Village Development Committees, DistrictDevelopment Committees and Municipalities)responsible for delivering certain services inrelation to drinking water and sanitation. TheAct also gives local bodies the power to makepolicies and implement programs in relation todrinking water and sanitation and to raiserevenue via local taxation, fees and other means.

FIGURE 1 ~ Nepali Legislation Governing Drinking Water

UMBRELLA LEGISLATION

Water Resource Act 1992 (2049 BS)

Water Resources Regulation 1993(2050 BS) Drinking Water Regulation 1998 (2055 BS)

SPECIFIC LEGISLATION

Nepal Water Supply Corporation

Act 1989 (2046 BS)

NON-SPECIFIC LEGISLATION

Local Self Governance Act

1999 (2055)

8


2.2 The Right to DrinkingWaterThe right to drinking water in Nepal is notexplicitly guaranteed by any legislation or bythe Constitution. However, it is universallyrecognised that the right to access safe drinkingwater is a basic human right and an integralpart of the right to life. (See Chapter 1.2 abovefor a full discussion of international law.)

Nepal has acknowledged the right to drinkingwater in government policy. In the WaterResource Strategy 2002 (2058 BS) the Stateacknowledges the public's right to drinkingwater and sanitation. It states that:

"Every Nepali Citizen, now and infuture, should have access to safedrinking water and appropriatesanitation as well as enough water toproduce food and energy atreasonable cost."6

Similarly, the National Water Supply SectorPolicy 1998 (2055 BS) also places the provisionof drinking water and sanitation as its principalobjective.7 The recent Rural Water Supply andSanitation National Policy 2004 (2060 BS) aimsto provide water supply and sanitation servicesto 100% of the population by the year 2017(2073 BS).8

The concept of a right to drinking water hasalso been supported by the Supreme Court ofNepal. In the Godavari Marble Case9 theSupreme Court of Nepal extended the scopeof right to life to include the right to live in a

clean and healthy environment and in theDrinking Water Corporation Case10 theSupreme Court acknowledged the right to safedrinking water as a part of the right to life.

Also, under Nepali law, drinking water isconsidered to be a consumer commodity. TheEssential Commodity Protection Act, 1955(2012 BS) deems drinking water to be anessential commodity and as such declares thatit should be strictly protected.11

Although there is no explicit right to drinkingwater provided for in Nepali legislation, sucha right can be implied from certain provisionsof the Water Resource Act 1992 (2049 BS).For example, drinking water and the domesticuse of water, is given priority over all otheruses of water.12 This implies that the public dohave a right to drinking water, if not inabsolute terms, then at least in priority to saysomeone wishing to use water for irrigation orhydropower. The Act also exempts users ofwater for non commercial drinking purposesfrom obtaining a licence13, again implying aright to drinking water, which is notconditional upon having a licence.

2.3 State Ownership ofWater ResourcesThe Water Resource Act 1992 (2049 BS)declares that ownership of water found withinthe Kingdom of Nepal is vested in the state.14

This is also supported by the public trustdoctrine that the state owns natural resources(including water resources). What this means

9


is that the State can control the use of water,sell water or levy fees in relation to water,however, it does not mean that the State hasan unfettered right to use water.

The use of water is subject to the strict scrutinyof various stakeholders and only 'beneficialuse' is permitted.15 Section 2 (b) of the WaterResource Act 1992 (2049 BS) definesbeneficial use as the rational use of waterresources within the available means andresource. The beneficial use also connotesreasonable and equitable utilization of optimalpotential without adversely affecting the waterrights of others. The public are the realbeneficial users of water, and the State, whileexercising ownership rights over water, musttake into account the interests of the people.16

There are various juristic and statutorylimitations and regulations in order to ensurethe beneficial use and such legislation prohibitsthe State from the exercise of its rights overwater in an arbitrary manner.

2.4 Priority of Water UsesThe Water Resource Act 1992 (2049 BS)determines which uses of water are givenpriority and in what order. The use of waterfor drinking and domestic purposes is givenfirst priority. The priority given to the differentuses of water is set out in Section 7 of theWater Resource Act 1992 (2049 BS) as follows:1. drinking water and domestic use2. irrigation3. agricultural use such as animal husbandry,

fisheries4. hydroelectricity

5. cottage industry (eg. water mill orgrinder),industrial enterprises and mining

6. navigation7. recreational use8. other uses

The Drinking Water Regulation 1998 (2055BS) also gives the use of water for drinkingand domestic purposes priority for serviceconnection by water suppliers. The Regulationsets out other factors for determining thepriority of service connection as follows:A. geographical locationB. populationC. quantity of the water available at the

sourceD. capacity of the structure andE. other technical factors

The Regulation also sets out which consumerswill be given priority in relation to serviceconnection by water suppliers:17

(a) Health posts, Anathalaya (orphanage),Bridrasram (home for the aged) and othersocial institutions

(b) Temporary camps established due to theflood, arson, infectious diseases or othernatural or god induced disaster.

(c) Schools, hostels, police posts,governmental, quasi-governmental andnon-governmental offices and theresidence of officials of such offices

(d) Private residences(e) Construction sites of public importance(f) Industrial premises or mills and the

residences of employees of suchindustries or mills

10


In determining the priority for providingservices to consumers, in addition to thefactors mentioned above, the Regulation alsorequires the water supplier to consult theDistrict Drinking Water Office and DistrictWater Resource Committee in the concernedVDC or municipality.

2.5 Management of WaterSupplyThe Drinking Water Regulation 1993 (2050BS) regulates the use of drinking water (andwater resources in general) in different waysdepending on whether the user is a corporatebody, a group of people or an individual. Themanagement systems provided by the Act areas follows:1. Corporate Bodies: The use of water by

corporate bodies is regulated through asystem of licensing.

2. Groups of People: The use of water bygroups of people who wish to use watercollectively is regulated through WaterUser Associations which must beregistered. For example a group ofvillagers or a community wishing to usea common stream for drinking water canform a DWUA.

3. Individuals: The use of water by anindividual for personal and noncommercial purposes is not regulated (ie.there is no requirement for either alicence or registration). The use of waterby an individual for commercial purposesmust be licensed.

2.6 Licensing of Water UseThe right to use water is not absolute as theWater Resource Act, 1992 (2049 BS) requiresusers to obtain a licence for utilization orsurvey of water resources.18 The Act exemptssome non-commercial users from therequirement to obtain a licence including usersof water for drinking or domestic purposes.

Although this section appears under theChapter for drinking water, it applies to allcommercial uses of water resources.

2.6.1 Who Must Obtain a Licence?The Water Resource Act 1992 (2049 BS)requires the following users of water resourcesto acquire a licence:19

1. A person or corporate body who desiresto conduct a survey or to utilize waterresources.

2. A person or corporate body who wasalready utilizing water resources prior tothe commencement of the Act.

Section 4(2) of Water Resource Act 1992(2049 BS) exempts users of water for thefollowing purposes from obtaining a licence:a) for one's own drinking and domestic use

on an individual or collective basisb) for the irrigation of one's own land on an

individual or collective basisc) for the purpose of running a water mill

or grinder as a cottage industryd) for the use of a boat for personal

transportation

11


e) for the use, as prescribed by regulationsto this Act, of water resources confinedto the land by the owner of such land

2.6.2 How to Obtain a Licence?The procedure for obtaining a licence, and thecriteria on which a licence will be granted, arefound in the Water Resource Act 1992 (2049BS), the Water Resource Regulation 1993(2050 BS) and the Drinking Water Regulation1998 (2055 BS).

The Water Resource Act 1992 (2049 BS)provides that to obtain a licence the person orcorporate body must submit an applicationwith the required particulars to the prescribedofficer or authority.20 The application fee isNRs.500 for a survey licence and NRs.1000 fora utilization licence.21 The Water ResourceRegulation 1993 (2050 BS) also requiresapplicants to submit 25% of the license feeprescribed in Schedule 8 of the Regulationwith the application (this is in addition to theapplication fee).22

The Water Resource Regulation 1993 (2050BS) establishes the District Water ResourceCommittee (DWRC) as the authority to issuelicences for the use of water resources ingeneral (except for hydropower production seeChapter 6.3).23 This is also confirmed by theDrinking Water Regulation 1998 (2055 BS).24

In each district, the chairperson of the DWRCshall be the Chief District Officer, the Secretaryshall be the Local Development Officer andthe members shall be representatives from the

District Agriculture Development Office,District Drinking Water Office, District ForestOffice, District Irrigation Office, DistrictDevelopment Committee, relevant StateElectricity Office and relevant state officerelating to the utilization of water resources.25

The particulars to be included in an application tothe DWRC for a licence to survey water resourcesare set out in the Drinking Water Regulation1998 (2055 BS)26, Schedule 3, as follows:1) name and address of the person/

corporate body2) objective of survey of water resources3) name of the water resource to be

surveyed4) address of water resource to be surveyed

including zone, district, VillageDevelopment Committee/Municipalityand Ward Number

5) duration of survey6) estimated cost of conducting survey7) other particulars

When making an application for a licence toutilize water resources, Schedule 5 of theRegulation requires the following particulars tobe submitted, in addition to those particularsrequired for a survey licence application:27

8) quantity of water to be utilized9) estimated cost of utilization of water

resource10) total estimated budget of the water

utilization project and the source of thesefunds

11) number of consumers to be benefited andarea covered

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Schedule 3 and 5 also provide that thefollowing documents are to be submitted withthe application:A. a technical report, environmental report

(either Environmental Impact Assessmentof Initial Environmental Examination asspecified in the Environment ProtectionAct 1996 (2053 BS), see Chapter 8) andeconomic viability report in relation toutilization only

B. a map of the utilization/survey siteC. statute of corporate body (if application

is by a corporate body)D. other necessary documents

2.6.3 Processing of LicenceApplicationsUpon receiving an application for licence, theDWRC shall assess the application. The DWRCmay give the applicant 15 days notice tosubmit additional particulars or documents ifnecessary in which case the date of submissionof application will be deemed to be the dateof submission of the additional documents.28

In relation to an application for licence forutilization of water resources, the DWRC isrequired to publish a public notice informingthe public of the details of the proposedutilization.29 Any member of the public mayobject or comment on the application (statingreasons) within 35 days of the date of thepublication if the issue of a licence is likely tohave adverse effects. If the DWRC receivesuch an objection it may impose conditions aspart of the licence to be followed by theapplicant in order to lessen the adverse impact.

After assessing the application, the DWRC, ifit deems proper, may issue a licence to theapplicant30 . Schedule 4 and 6 of the DrinkingWater Regulation 1998 (2055 BS) sets out thedetails to be included in the licence (such asthe commencement date, duration of thelicence and expiration date) and the terms andconditions to be complied with by the licensee.If the application meets the criteria, the DWRCis required to issue the licence within thefollowing timeframe31 :� in the case of a licence for conducting a

survey of water resources, within 30 daysof receipt of the application

� in the case of a licence for the utilizationof water resources, within 120 days ofreceipt of the application

� in the case of a licence for the utilizationof water resources where the person orcorporate body was util izing waterresources prior to the commencement ofthe Act, within 60 days of receipt of theapplication

The Drinking Water Regulations 1998 (2055BS) also provides that only one licence can beissued to survey or use a particular waterresource for the same purpose, period of timeand in same working area.32 If a person orcorporate body already holds a licence toconduct a survey of water resources, thatlicensee shall be given preference over anyother applicant for a licence to utilize waterresources in the same area.33

2.6.4 Rights of LicenseeOnce a licence has been issued, a licensee has

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certain rights under the Water Resource Act1992 (2049 BS) and the Drinking WaterRegulation 1998 (2055 BS):1. Right to Use Water Source2. Right to Transfer or Sell Licence3. Right to Acquire House and Land

1. Right to Use the Water Source:

Rule 18 of the Drinking Water Regulation1998 (2055 BS) provides that a licensee hasthe right to use the water source for thepurpose mentioned in the licence to the extentof the water resources of the area specified inthe licence. A similar provision is alsocontained in the Water Resource Regulation1993 (2050 BS).34

2. Right to Transfer or Sell Licence:Rule 27 of the Water Resource Regulation1993 (2050 BS) and Rule 20 of Drinking WaterRegulation 1998 provides that the licensee hasthe right to sell or transfer ownership of thelicence to another person or corporate body.The licensee must first apply to the concernedDWRC which may grant permission for thelicence to be sold or transferred provided thatthe buyer meets certain criteria.

3. Right to Acquire House and Land:

The Drinking Water Regulation 1998 (2055BS) and the Water Resource Regulation 1993(2050 BS) also give the licensee the right toacquire or use privately owned house and land(through HMG) if necessary in order to utilizethe resource in accordance with the licence. Inorder to acquire land or house, the licenseemust make an application to HMG who will

assess the application, and approve theacquisition as per existing law, if deemednecessary.35

2.6.5 Duties of LicenseeUnder the Drinking Water Regulation 1998(2055 BS), a licensee has certain duties:1. Pay Levy2. Start Work on Time3. Submit Report4. Renew Licence5. Amend Licence

1. Duty to Pay Levy:

A licensee must pay an annual levy ofNRs.5000 per year (in addition to the licencefee) for the use of the water resource.36

The Water Resource Regulation 1993 (2050BS) has a conflicting provision which requiresdrinking water projects to pay a differentannual levy and the amount of that levy is setout in Schedule 9 as between NRs.500 andNRs.25 000 depending on the size of thedrinking water project.

2. Duty to Start Work on Time:Rule 16 of the Drinking Water Regulation1998 (2055 BS) provides that a licensee isrequired to start the physical works withinthree months in the case of a licence forsurvey or utilization. A licensee can apply tothe DWRC for an extension of up to threemonths if the licensee can show reasonablecause for the delay. However, it should benoted that the Water Resource Regulation1993 (2055 BS) has a conflicting provision that

14


allows this time period to be relaxed up to oneyear in the case of a utilization licence.37

3. Duty to Submit Report:The licensee must report to DWRC every threemonths on the works undertaken underthe licence.38

4. Duty to Renew Licence:The licensee is required to apply to the DWRCto renew the licence, and pay the renewalapplication fee of NRs.500, before theexpiration of the licence period.39 Lateapplications may be made DWRC within 35days of the expiry date, stating the reason forthe delay in renewing the licence.

5. Duty to Amend Licence:If the licensee intends to conduct activities notcovered by the existing licence, s/he has aduty to apply to have the licence amended bysubmitting an application to the DWRC.40 TheDWRC will assess the application and if itdeems the amendment reasonable, mayamend the licence.

2.6.6 Cancellation of LicenceSection 21 of the Water Resource Act 1992(2049 BS) sets out the circumstances andprocedure for cancellation of a licence by theDWRC as follows:1. If the licensee performs any act contrary

to the provisions of the Water ResourceAct 1992 (2049 BS) or any rules madeunder this Act, the DWRC may issue anorder requiring the licensee to makenecessary improvements within aspecified period.

2. If the licensee fails to make suchimprovements within prescribed period,the DWRC may cancel the license.

3. Before the licence can be cancel theDWRC shall give the licensee areasonable opportunity to explain thefailure to comply with the Act and/or theorder.

2.7 Drinking Water UserAssociationsThe Water Resource Act 1992 (2049 BS)provides for the formation of Water UserAssociations when a group of individuals wishto make use of a water resource for theircollective benefit. Water User Associationsmust be registered which provides thegovernment with a mechanism to regulate thecollective use of drinking water.

2.7.1 Who May Form a DrinkingWater User Association?Rule 3 of the Drinking Water Regulation 1998(2055 BS) provides that groups of people whowish to benefit collectively from developingand operating their own project may form aDWUA.

A DWUA may also be registered for theoperation of a project developed by HMG. IfHMG wishes to operate a project thorough aWater User Association as per Section 11 ofthe Water Resource Act 1992 (2049 BS),persons willing to operate the project mustform and register a Water User Association asper Rule 5 of the Water Resource Regulation1993 (2050 BS).

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2.7.2 Statute of Drinking WaterUser AssociationEvery DWUA must have a Statute containingthe following particulars: 41

i. objective and working areaii. criteria for eligibility for membershipiii. membership fees and procedure for

awarding membershipiv. disqualification of membershipv. composition of general assemblyvi. meeting of general assemblyvii. power, function and duties of general

assemblyviii. composition of executive committeeix. meeting of executive committeex. power function and duties of the

executive committeexi. power, function and duty of Executive

Authorityxii. provision for election of committee

membersxiii. proposal of no confidence motionxiv. financial sourcexv. movable and immovable property

detailsxvi. funds/fundingxvii. provision for annual auditxviii. amendment of Association Statutexix. power to make bylawsxx. other necessary provisions

2.7.3 Procedure for Registrationof Drinking Water User AssociationThe Drinking Water Regulation 1998 (2055BS) sets out the procedure to register a DWUAas follows: 42

� Persons desiring to register a Water User

Association must submit an application tothe District Water Resource Committee inthe format prescribed in Schedule 1 of theRegulation together with a copy ofAssociation Statute and a fee of NRs.100.

� The DWRC, on the receipt of applicationshall assess the application and, if itdeems proper, register the DWUA andissue a certificate of registration in formatprescribed in Schedule 2.

� In assessing the application, the DWRC,in consultation with concernedauthorities, will look at whether theproposed project is viable and appropriatefrom an economic and technical point ofview.

� If DWRC does not approve theapplication, it shall notify the applicantwithin 30 days, stating reasons.

After the registration of one Water UserAssociation, no other Water User Associationcan be registered which would reduce thequantity of the water used by the originalWater User Association in same workingarea.43 The quantity of water which may beused by the Water User Association isdetermined by the DWRC and set out in thecertificate of registration44 .

2.7.4 Rights of Drinking WaterUser AssociationsAfter registration, the Water User Associationhas the right to use the water source todevelop or operate a drinking water project tothe extent allowed in the certificate ofregistration.

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Similarly, a Water User Association, operatinga drinking water project developed by HMGand transferred before the commencement ofthe Drinking Water Regulation 1998 (2055 BS)also enjoys the same rights.

The rights of DWUAs are discussed in moredepth in Chapter 3.1.

2.7.5 Functions and Duties ofDrinking Water User AssociationsDWUAs are also suppliers of drinking water tothe public. Under the Drinking WaterRegulation 1998 (2055 BS), water suppliershave certain functions and duties. These arediscussed fully in the following chapter. Otherobligations, such as the obligation to hold ameeting of the general assembly, are set outin the Statute of the Water User Association.

The duties of Drinking Water User Associationsare discussed in more depth in Chapter 3.1

2.8 Obligations of Consumers ofDrinking WaterThe Nepal Water Supply Corporation Act 1989(2046 BS) sets out the obligations andresponsibilities of consumers of drinking water.The Act also prohibits certain activities andimposes penalties for breach of theseprovisions.45

Rule 36 of the Drinking Water Regulation1998 (2055 BS) imposes the followingobligations on the public in relation to theconsumption of drinking water:� to pay service fees on time

� to inform the supplier immediately of anyunauthorised, intended or attempted, useor misuse of the service, leakage ofdrinking water or any other such activity

� to provide necessary assistance to thesupplier for the protection, maintenanceand repair of the water supply structuredeveloped by a WUA

Section 2 (d and e) of the EssentialCommodity Protection Act, 1955 (2012 BS)deems drinking water to be an essentialcommodity and prohibits any strike affectingthe water supply and prohibits any personsfrom causing damage to, or destroying, thewater supply structures.

Section 6 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) also createsan obligation to pay a tariff and servicecharges for the supply of water. It hasauthorised the NWSC to determine theamount of the tariff and date for payment.The consumer has an obligation to pay thewater tariffs within the prescribed time. If aconsumer does not pay the tariff within theprescribed time the NWSC may terminate thedrinking water and sewerage connection.

Rule 37 of the Drinking Water Regulation1998 (2055 BS) prohibits the following:� any act in violation of Rule 36 of the Act� any unauthorized use or misuse of the

service or leakage of drinking water orother such activity

� providing a separate sub-line to anotherfrom one’s own line

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� damaging meter, or the breaking of theseal of a drinking water meter

A supplier may cut the service to a user if theuser commits any of the prohibited acts inRule 37.

Section 18 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) also prohibitsthe following activities:� causing damage to, or the destruction of

a drinking water source, reservoir or otherstructure relating to drinking water andsewerage

� pollution of drinking water� connecting a water tap to the drinking

water supply pipe without permissionfrom the Corporation

� the use of water after removing thedrinking water meter without informingthe Corporation

� the use of any machine connected to thedrinking water pipe to draw more water

� causing damage to, or breaking, thedrinking water meter

� connecting to the sewerage system orthrowing or keeping solid material in thesewerage system without the approval ofthe Corporation

� stealing, destroying, spoiling or causingdamage to the drinking water supplysystem or sewerage system managed bythe Corporation

� breaking, damaging or destroying asanitation outlet or mangal46

� creating an obstacle or opposing activitiesof the Corporation relating to sanitationand drinking water

� undertaking any construction work so asto damage the pipeline laid for thedistribution of water and sewerage

Section 19 of the Nepal Water SupplyCorporation Act 1989 (2046 BS)provides various penalties for violation ofSection 18.

Chapter33Water SupplySystemWater SupplySystem

20

C H A P T E R 3Water Supply System

There are various authorities/bodies in Nepalwhich play a role in supply drinking water tothe people:1. Drinking Water Suppliers: The Drinking

Water Regulation 1998 (2055BS) providesfor the establishment of private watersuppliers as well as community usergroups and sets out their responsibilitieswhile supplying water to consumers.

2. Nepal Water Supply Corporation: TheNepal Water Supply Corporation Act1989 (2046 BS) establishes the NWSC asthe authority responsible for the supplyof drinking water and sanitation.

3. Local Bodies: The Local Self GovernanceAct 1999 (2055 BS) gives local bodiescertain rights and duties to maintain watersupply and sanitation in their respectiveterritories.

4. Department of Water Supply andSewerage: The Department of WaterSupply and Sewerage is established byHMG under the Ministry of PhysicalPlanning and Works and conducts variousactivities on behalf of the centralgovernment.

3.1 Drinking Water SuppliersDrinking water suppliers are DWUA andcorporate bodies essentially fulfilling a stateresponsibility (to supply drinking water) as a

service and also for commercial gain. They areregulated by the Drinking Water Regulation1998 (2055 BS) which defines a water supplieras a Water User Association and/or licenseeholding a licence for the operation of a watersupply system.47 In other words, a drinkingwater supplier is a DWUA and these terms areinterchangeable.

The piped drinking water supply system inNepal, within most cities, is operated by theNWSC. In smaller towns and rural areas pipeddrinking water supply is operated bycommunity DWUAs. The Kathmandu ValleyWater Reform Project has proposed certainlegal reforms to establish a Water Authority(WA), a National Water Supply RegulatoryBoard and a Water Utility Operator (WUO)the later being a limited liability company forthe supply of drinking water in the KathmanduValley.

There are also some private water vendors (forexample in the village of Ichangu Narayan)who sell drinking water to tankers who thensell the water to private people or commercialenterprises in the Kathmandu Valley.

The Drinking Water Regulation 1998 (2055BS) gives water suppliers/Water UserAssociations certain powers and imposes

21


certain duties in the supply of water toconsumers as follows:1. Duty to Supply Water2. Duty to Maintain Quality Standards3. Duty not to Pollute4. Duty to Repair and Maintain5. Duty to Compensate6. Power to Impose Conditions of Service7. Power to Reduce or Cease Service8. Power to Impose a Service Charge

3.1.1 Duty to Supply WaterWater suppliers are under a legal obligation tosupply water to the public. While there is nospecific provision imposing this obligation, awater supplier is defined as a person or userassociation formed to supply water. This is thepurpose for which they are licensed and thepowers given to them are to enable them tofulfil this role.

There are certain guidelines set out in theDrinking Water Regulation 1998 (2055 BS) inrelation to the basis for service supply and thepriority to be given to applicants for watersupply (see Chapter 2.4) and also in relationto the procedure for service connection.48

Rule 31 of the Drinking Water Regulation1998 (2055 BS) provides that if a person orinstitution wishes to utilize the services of awater supplier, they must make an applicationto the water supplier in the format prescribedby the supplier. The supplier will assess theapplication and determine whether or not itcan provide the service requested by theapplicant. If the service can be provided thewater supplier will issue a notice to the

applicant stating the estimated cost andamount to be deposited and time limitation forsuch deposit. Upon receipt of the deposit, thewater supplier must include the name of theapplicant in the list of its users and provide theservice requested.

If the water supplier determines that theservice cannot be provided to the applicant,the water supplier is required to inform theapplicant. The applicant can appeal thisdecision to the District Drinking Water Officewho may issue an order which is final andbinding on both parties.

3.1.2 Duty to Maintain QualityStandardsThe water supplier has a duty to maintain thequality of drinking water provided to theconsumer49 in accordance with the standardset by Section 18 of the Water Resource Act1992 (2049 BS). However in practice thisstatutory obligation is repeatedly violated andthe quality of drinking water supplied byNWSC is contaminated with pollutants inexcess of the tolerance limits set by the WorldHealth Organisation and HMGN.

3.1.3 Duty not to PolluteRule 26 of the Drinking Water Regulation1998 (2055 BS) provides that the drinkingwater supplier must not undertake any workor build any structure which would causepollution at the source or have an adverseimpact on the environment. Section 22 of theWater Resource Act 1992 (2049 BS) prescribesa general penalty for causing pollution ofNRs.5, 000 and further provides that any

22


violator of this section must pay compensationfor damage caused.

3.1.4 Duty to Repair and MaintainRule 28 of the Drinking Water Regulation1998 (2055 BS) provides that the watersupplier has a duty to make simple and majorrepairs to the project as follows:� Simple Repairs: The water supplier is

required to conduct simple repairs of theproject using its own resources andmeans. If the water supplier is unable todo simple repairs then financial assistancecan be requested from the concernedVDC or Municipality and technicalassistance can be requested from theDistrict Drinking Water Office.

� Major Repairs: The water supplier isrequired to conduct major repairs of theproject using unskilled labour and localconstruction materials such as sand,stone, concrete etc. If skilled labour, otherconstruction materials or technicalassistance is required for the repairs thewater supplier can request skilled labourand construction materials from theconcerned VDC, municipality or DDC andtechnical assistant from the DistrictDrinking Water Office. If the VDC,Municipality or DDC cannot providesufficient assistance to conduct the majorrepairs the supplier can request assistancefrom the relevant District Drinking WaterOffice and must provide detail particulars.Upon receipt of request for assistancefrom the water supplier with detailedparticulars, and after inspection of the

project, the District Drinking Water Officemust provide financial and technicalassistance in order to repair the project.

3.1.5 Duty to CompensateThe water supplier is required to paycompensation to any aggrieved person whohas sustained loss as a result of beingprohibited from using his/her own house orland for a period or as a result of theacquisition of his/her house and/or land by awater supplier (see Chapter 7).50

3.1.6 Power to Impose Conditionsof ServiceRule 32 of the Drinking Water Regulation1998 (2055 BS) empowers water suppliers toimpose any necessary conditions, whileproviding service to a consumer, provided thatsuch conditions are not inconsistent with theRegulation, the Water Resource Act 1992(2049 BS) or any conditions imposed by HMGat the time of the transfer of the project tothe Water User Association.

The water supplier is required to consult withthe District Drinking Water Office andconcerned VDC or municipality whendetermining the conditions of service to beimposed on a consumer.

3.1.7 Power to Reduce or CeaseServiceRule 33 of Drinking Water Regulation 1998(2055 BS) empowers water suppliers to reduceservice partially or fully if the demand forwater exceeds the capacity of the structure.

23


Reduction of service to a consumer must bein accordance with the priority given todifferent users under Rule 30 of the DrinkingWater Regulation 1998 (2055 BS) (SeeChapter 2.4 for details). The water suppliermust consult with the District Drinking WaterOffice and concerned VDC or municipalitywhen reducing service to a consumer.

Similarly, a water supplier is empowered tocease service to a consumer under thefollowing circumstances51 :(i) If the consumer fails to pay the service

charge, service can be ceased for theperiod during which the service charge isunpaid.

(ii) If the consumer violates the conditions ofservice as agreed with the supplier, servicecan be ceased until those conditions aremet.

(iii) If the structure is damaged or is likely tocause damage, service can be ceased forthe period of repair.

(iv) If the water becomes unsafe to healthdue to pollution or other reasons, servicecan be ceased while the water isunusable.

The water supplier is required to publish apublic notice stating the reason for reductionor cessation of service at least before 15 daysprior to reduction/cessation.52 The watersupplier must give notice of this to theconsumer and concerned individuals andauthorities except in the circumstances set outin Rules 33, 34(c) and (d).

3.1.8 Power to Impose a ServiceChargeRule 39 of Drinking Water Regulation 1998(2055 BS) also empowers the water supplier tolevy a fee as fixed by the Service ChargeFixation Committee. Regular payment of theservice charge is the duty of the consumer. Rule39 empowers the water supplier to recover theservice charge from the consumer in cash, kindor by way of services such as labour. The watersupplier can also determine the date and themethod of the service charge collection.

3.2 Nepal Water SupplyCorporationThe NWSC is established under the statutoryprovisions of the Nepal Water SupplyCorporation Act, 1989 (2046 BS) as theauthority responsible for providing cleandrinking water, sanitation and sewerage. TheAct is the primary legislation dealing withdrinking water and sewerage. It establishes theright of the public to drinking water andsanitation by determining the responsibilitiesand duties of the NWSC in relation to watersupply and sewerage management.

The NWSC is a statutory body and is agovernment controlled public corporation.HMG can give directives from time to timeand it is the duty of the Corporation to abideby such directives. HMG has the power toissue an order to stop activities against thisAct. HMG has the power to dissolve theNWSC at any time and, upon dissolution, theliabilities of the corporation shall be transferredto HMG.53

24


The NWSC has certain functions and dutiesand powers under the Nepal Water SupplyCorporation Act 1989 (2046 BS):1. Functions and Duties2. Power to Impose Fees and Charges3. Power to Cease Service4. Power to Enter House and Land5. Power to Lay Pipelines

3.2.1 Functions and DutiesSection 5 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) lists thefollowing as the functions and duties of theNepal Water Supply Corporation:1. to formulate and implement a plan for

drinking water and sewerage2. to conduct study, research and surveys in

relation to sources of drinking water,distribution of drinking water andsewerage

3. to determine and map roads linking thesource of drinking water to thedistribution point

4. to complete works as per agreementsbetween HMG and international orforeign organisations

5. to carry out necessary construction workrelated to drinking water and sewerage

6. to operate drinking water and seweragerelated projects as prescribed by HMG

7. to provide drinking water and seweragefacilities by charging fees/levies forservices

8. to impose necessary conditions for theutilization of drinking water and the useof sewerage facilities

9. to protect drinking water from beingmisused

10. to control pollution of drinking water11. to repair and maintain pipelines for

drinking water and sewerage12. to make necessary repairs to restore

service as soon as possible after beinginformed that the flow of water from atap has ceased

13. to increase fees/tariffs to recoveroperation costs

14. to undertake any other necessaryactivities to achieve the objective of theCorporation

3.2.2 Power to Impose Fees andChargesSection 6 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) provides thatthe NWSC can determine and collect tariffs forsupplying drinking water and a service chargefor providing connection to water andsewerage services.

The Corporation may set time limits forpayment of any tariff or service charge andmay charge a 25-50% penalty for latepayment of such tariff/charges.

3.2.3 Power to Cease ServiceSection 6(4) of the Nepal Water SupplyCorporation Act 1989 (2046 BS) provides thatthe Corporation may cease water supply andsewerage facil ities to the consumer, ifconsumer fails to pay the fees, service chargeand or any other charge payable toCorporation within the time limit prescribed byCorporation. However, the Corporation mayresume services to a consumer if the consumerpays the amount due and any penalty.54

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3.2.4 Power to Enter Houseand LandSection 7 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) provides thata person authorized by the Corporation may,if necessary, enter the house or land of anotherfor the purpose of discharging the duty of theCorporation, subject to giving prior notice tothe owner. The requirement of notice iswaived if there is reason to suspect the misuseor stealing of drinking water. In this case thechairperson of the Corporation, or personauthorized by him/her, may enter the propertyduring daylight hours for the purpose ofinvestigating.

3.2.5 Power to Lay PipelinesSection 17 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) provides thatthe Corporation, in the course ofimplementing a project related to drinkingwater and sewerage, may if necessary, laypipelines in accordance with the plan throughpublic or private house or land, for thepurpose of connecting services from one placeto another.

The Corporation is required to lay the pipelinesin such a way as to minimise any loss ordamage to public or private property. Further,the Corporation shall either pay compensationto the owner of the house or land for any losscaused by the laying of the pipeline fordrinking water and sanitation at currentmarket value or restore the land or house toits former condition.55

3.3 Local BodiesThe promulgation of the Local SelfGovernance Act 1999 (2055 BS) and the LocalSelf Governance Regulation 1999 (2056 BS)built on, and improved, the existing legislativeframework for effective decentralisation ofgovernment. The Local Self Governance Actdevolves wider powers to local bodies at thevillage, municipality and district level to planand manage services including services relatingto drinking water, irrigation, sanitation andconservation of water resources. The localbodies that have a role in relation to drinkingwater, sanitation and water conservationare the:1. Village Development Committee (VDC)2. Municipality3. District Development Committee (DDC)

3.3.1 Village DevelopmentCommitteeThe Local Self Governance Act 1999 (2055 BS)and its Regulations establishes the VDC as thelocal bodies body at the village level and setsout the functions, powers and duties of theWard Committee, Village Council and VDC inrelation to drinking water, sanitation and waterconservation.

1. Functions and Duties Section 28 providesthat the VDC shall be responsible for thefollowing within the village development area:� Supplying drinking water� Preparing project and programmes

relating to irrigation and river control� Providing wells, ground water, ponds

and taps

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� Preserving sources of water� Protecting the environment

Section 25 provides that the Ward Committeeshall be responsible for the following:� Keeping ponds, lakes, wells, ground

water, taps etc neat and clean� Arranging disposal of waste, dirt and

rotten materials� Assisting the VDC to keep an inventory

of ponds, lakes, wells, ground water andtaps etc within the ward

� Looking after canals drills, water spout (orPaini in Nepali) within the ward

Section 26 provides that the Village Councilshall be responsible for the following:� Passing budgets, plans and programmes

submitted by the VDC� Adopting resolutions relating to the

levying and collection of taxes, charges,fees, levies etc proposed by the VDC

� Evaluating development and constructionwork carried out within the VDC area andgiving necessary directions to the VDC

Section 28(2) provides that the VDC isresponsible for encouraging consumer groupsand other non-governmental organisationsinvolved in development and constructionwork to operate in the village developmentarea and provides that the VDC should usethese groups/organisations to undertake workson behalf of the VDC.

2. Powers: The Local Self Governance Act1999 (2055 BS) also gives the VDC the

following powers in relation to waterresources:i. Judicial Powerii. Power to Impose Taxes, Charges or Feesiii. Rights over Public Areasiv. Power to Fine

(i) Judicial Power

Section 33 of the Local Self Governance Act1999 (2055 BS) has not yet come into force,but will give the VDC certain judicial power todecide cases relating to:i. the allocation of waterii. the use of water and riverbanks (ghats)iii. canals, dams and ditches

(ii) Power to Impose Taxes, Charges or Fees

The VDC has the power to impose thefollowing taxes/charges:56

i. taxes on the commercial exploitation ofnatural resources and heritage within thevillage development area

ii. service charges for use of facilities such asdrinking water, water taps and othersimilar facilities

(iii) Rights over Public AreasThe Act declares that public property, whichis not subject to the proprietary right of anyindividual and not within the ownership ofHMG or DDC, such as public drainage,sewerage, ponds, public rest houses, inns,water spouts, taps, wells, riverbanks (ghats) etcshall be the assets of the VDC and it shall havetitle over these properties and shall have tosupervise repair, maintain and manage suchproperties.57 Accordingly, the VDC has the power

27


to generate income from selling the productof public ponds or the assets of the VDC.58

(iv) Power to FineThe Act empowers the VDC to impose a fineof up to NRs.100 for dumping solid waste inor near a water body (other than in adesignated place) plus expenses incurred inremoving the waste.59

3.3.2 MunicipalityThe Local Self Governance Act 1999 (2055 BS)establishes the Municipality as the local bodiesbody in urban areas. The availability ofdrinking water and electricity is one of thecriteria of declaration and classification of aMunicipality.60

The Local Self Governance Act 1999 (2055 BS)and its Regulations sets out the functions andduties of the Ward Committee,61 MunicipalCouncil,62 and the Municipality63 in relation todrinking water, irrigation, sanitation and waterconservation. It also gives the Municipalitycertain rights and powers such as judicialpowers,64 power to impose taxes/servicecharges65 and rights over public areas.66 Thesefunctions, powers and duties are substantiallythe same as those of the VDC and will not berepeated here.

However there are some differences betweenthe VDC and Municipality:� The Municipality’s powers are focused

more on sanitation and recreational parkswhereas the VDC’s power is focusedmore on supplying water and preservingnatural resources.

� In relation to taxes, charges and fees,there is no provision for the Municipalityto levy a natural resource utilization tax.However, the Municipality, like the VDC,can levy a service charge on drinkingwater, water taps, solid wastemanagement, recreational facilities suchas swimming pools, public baths, laundryand public ghats (riverbanks) etc.67

� The Municipality may also impose a largerfine of up to NRs.15, 000 for dumping ofsolid waste in or near a water body (otherthan in a designated place) plus expensesincurred in removing the waste.

3.3.3 District DevelopmentCommitteeThe Local Self Governance Act 1999 (2055 BS)and its Regulations establishes the DDC as thelocal bodies body at the district level and setsout the functions, powers and duties of theDDC in relation to drinking water, irrigation,sanitation and water conservation.

1. Functions and Duties: Section 189 providesthat the DDC shall be responsible for thefollowing in the district area:� Formulating and implementing drinking

water projects for the benefit of peoplein more than one VDC of the district

� Protecting the environment� Formulating, implementing, operating

and maintaining irrigation projects whichprovide irrigation in more than one VDCof the district

� Formulating and implementing plans toprevent soil erosion and river cuttingwithin the DDC.

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Section 201(d) and 202(1) (a) further providethat water projects which protect and promotethe environment shall be given priority by theDDC while formulating plans.

The functions of the District Council are thesame as those for the Village Council set outabove in Chapter 3.3.1.

2. Powers: The Local Self Governance Act1999 (2055 BS) also gives the DDC thefollowing powers:(i) Power to Transfer Projects to User Groups(ii) Power to Impose Taxes, Charges or Fees(iii) Property Rights(iv) Power to Fine

(i) Power to Transfer Projects to User GroupsWhen implementing drinking water projects,the DDC has the power to form user groupsfrom amongst the persons who receives directbenefit from the project.68 The DDC maytransfer the operation of such projects to theconcerned body or users group who shall thenbe responsible for their operation, maintenanceand repair.69

(ii) Power to Impose Taxes, Charges or FeesThe DDC has the power to impose taxes,charges or fees in relation to the use of wateras follows:70

i. taxes to raise revenue for ditches andirrigation ponds etc. at the rate prescribedby the District Council

ii. service charges for the use of a ditch,embankment, canal etc constructed bythe DDC for public use at the rateprescribed by the District Council

iii. fees for issuing and renewing licences foruse of waterways, use of flying fox (tuin)to cross rivers, boating and fishing at therate approved by District Council

(iii) Property RightsThe DDC has the right to sell sand from riversand canals as well as concrete (roda), stones,soil and wood found on river banks. The DDCmust provide 35-50% of the proceeds of saleof such materials to the concerned VDC orMunicipality71 .

(iv) Power to Fine

Section 233 of the Local Self Governance Act1999 (2055 BS) provides that if anyonecommits any act in contravention of this Act,its Regulations or any bylaws made under thisAct, the DDC may punish the offender with afine of up to NRs.1000 and if s/he repeatssame offence the fine is increased by NRs.1000each time the offence is committed.

3.4 Department of WaterSupply and SewerageThe Department of Water Supply andSewerage (DWSS) is established by HMGunder the Ministry of Physical Planning andWorks. The vision of the DWSS is “To provideevery settlement in the country with safedrinking water and adequate sanitation.”

The DWSS is committed to providing a safewater supply and adequate sanitation toimprove quality of life with the efficientmobilisation of resources. The Department ofWater Supply and Sewerage (DWSS), has anetwork of 5 regional monitoring and

29


supervision offices, 43 divisions, and 27 sub-divisions located throughout the country.

The DWSS is not governed by any separateand specific legislation. The DWSS is thegovernment agency responsible for theplanning and implementation of drinkingwater supply, sanitation and seweragefacilities. The DWSS website72 sets out theDepartment’s main functions/activities asfollows:1. Planning of new water supply projects

including conducting feasibility studies,detailed surveys, designing projects andpreparing cost estimates.

2. Community participation through theformation of Users’ Committees, interactionwith User Groups and communitymobilisation.

3. Implementation/construction/maintenanceof water supply projects with theinvolvement of user groups.

4. Construction of drainage and seweragesystem in number of towns.

5. The operation and maintenance of watersupply projects throughout the countryincluding the implementation of gravity-fed, piped systems in the hill regions andshallow or deep tube wells in the Terairegion.

6. The installation of water treatmentsystems, spring protection works andimplementation of rainwater harvestingprogrammes in a number of districts.

7. Construction of sewage treatment plantsin some villages/towns.

8. Promotion of sanitation activities withcreation of on-site sanitation facilities,promotion of latrines and awarenessraising activities to disseminateknowledge, change attitudes, build skillsand change practices.

9. Implementation of human resourcedevelopment activities.

10. Research and development in relation towater and sanitation.

Chapter Sanitation4 Sanitation4

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C H A P T E R 4Sanitation

4.1 Policy and LegislationTo date, there is no separate policy or specificlegislation regarding sanitation. Sanitation inNepal is addressed together with drinkingwater as an essential component of safe andclean drinking water.

HMG’s policy on sanitation is contained in theRural Water Supply and Sanitation NationalPolicy 2004, the Rural Water Supply andSanitation Strategy 2004 and the Rural WaterSupply and Sanitation Sectoral Strategic ActionPlan 2004.

These policies recognise sanitation as a basicneed and aim to provide all Nepali people withsanitation services by the year 2017 (2074BS).73 The Rural Water Supply and SanitationNational Policy 2004 (2060 BS) states itsobjective as to provide safe, accessible andadequate water supply services withsanitation facilities, reduce waterbornedisease and save time and labour fetchingwater.74

The main legislation in relation to sanitation isthe Local Self Governance Act 1999 (2055 BS)which give local bodies functions, powers andduties in relation to sanitation and in particular

solid waste management and The Solid Waste(Management and Resource Mobilization) Act1987 (2044 BS) which establishes the SolidWaste Management and ResourceMobilization Center as the authorityresponsible for the collection, transportationand disposal of municipal solid waste in a safeand environmental friendly manner.

4.2 The Right to SanitationThe right to sanitation, under international lawis usually linked to drinking water or health.The right to safe drinking water and the rightto health are recognised under internationallaw as basic human rights and sanitation isrecognised as integral to these rights. (SeeChapter 1.2 regarding the international law onsanitation.)

Policy and legislation in Nepal have alsorecognised the right to sanitation but only tothe extent that it is associated with drinkingwater. Policy documents have acknowledgedthat all people have a right to access to basicwater supply and sanitation services in orderto support the socio economic developmentand combat with waterborne diseases (SeeChapter 1.2).75

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4.3 Sanitation ServicesThe local bodies including the VDC andmunicipality and the SWMRMC are basicallyresponsible for the safe disposal of solid wasteand for providing sanitation facilities tothe public.76

The central government, operating throughthe NWSC and Department of Water Supplyand Sewerage is responsible for providingsewerage and sanitation services tothe public77 .

There are various state bodies that play a rolein sanitation in Nepal:1. Local Bodies: The Local Self Governance

Act 1999 (2055 BS) gives local bodiescertain rights and duties in relation tosanitation in their respective territories.

2. Solid Waste Management and Resource

Mobilization Centre: The Solid Waste(Management and ResourceMobilization) Act 1987 (2044 BS)establish the SWMRMC as the authorityresponsible for the collection,transportation and disposal of municipalsolid waste in a safe and environmentalfriendly manner.

3. Nepal Water Supply Corporation: TheNepal Water Supply Corporation Act1989 (2046 BS) establishes the NWSC asthe authority responsible for the supplyof drinking water and sanitation facilities.

4. Ministry of Physical Planning and Works:The Sanitation Division and theDepartment of Water Supply andSewerage are established by HMG under

the Ministry of Physical Planning andWorks and conduct various activities onbehalf of the central government inrelation to sanitation.

4.3.1 Local BodiesThe Local Self Governance Act 1999 (2055 BS)and the Local Self Governance Regulation1999 (2056 BS) give local bodies functions,powers and duties in relation to sanitationand, in particular, solid waste management. Asmentioned above, sanitation services aremostly dealt with in connection to drinkingwater and accordingly this section should beread in conjunction with Chapter 3.3 abovewhich discusses the role of local bodies inproviding drinking water and sanitationservices. The local bodies that have a role inrelation to sanitation are the:1. Village Development Committee2. Municipality3. District Development Committee

1. Village Development Committee:Functions and Duties of the Ward CommitteeSection 25 provides that the Ward Committeeshall be responsible for the following:� Keeping drainage, ponds and lakes neat

and clean with the Ward� Arranging for the disposal of waste, dirt

and rotten materials

Functions and Duties of the VDCSection 28 provides that the VDC shall beresponsible for the following:� Building public toilets� Preparing criteria for houses, buildings

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and other infrastructures to beconstructed

� Making arrangements for sewerage andsanitation in settled areas

Powers of the VDCThe Local Self Governance Act 1999 (2055 BS)also gives the VDC the following powers:(i) Power to Impose Service Charge(ii) Right to Remove Structures and to Fine

(i) Power to Impose a Service ChargeSection 56 gives the VDC the power to imposea service charge on sanitation, drainage andsewerage services.

(ii) Power to Remove Structures and to Fine

Section 70 gives the VDC the followingpowers:i. If anyone constructs or places drainage,

toilet or septic tank etc, or does anythingthat creates an obstacle or barrier with anintention of causing trouble to others, theVDC may order the offender to stop suchact, or remove or demolish suchconstruction. If the offender refuses tocomply with the order, the VDC maydepute someone to stop, demolish orremove the same. Any expense incurredwhile demolishing or removing shall berecovered from the offender who shallalso incur a fine of up to NRs.1000.

ii. If anyone dumps solid waste at a placeother than that designated for wastedisposal within the village developmentarea, such a person may be punished witha fine up to NRs.100 plus any expensesincurred in removing such waste.

2. Municipality: The Local Self GovernanceAct 1999 (2055 BS) and the Local SelfGovernance Regulation 1999 (2056 BS) givefull responsibility of managing and handlingthe solid waste to the Municipality.

Functions and Duties of the Municipal WardCommittee

Section 93 provides that the Municipal WardCommittee shall be responsible for:� Keeping drainage, ponds and lakes neat

and clean with the Ward� Arranging for the disposal of waste, dirt

and rotten materials

Functions and Duties of the MunicipalitySection 96 (b) provides that the Municipalityshall be responsible for:� carrying out drainage plans in the

municipality and operating, maintainingand repairing drainage

� arranging public toilets withinmunicipality

� carrying out sanitation programmes� carrying out and managing waste

collection and disposal

Powers of the MunicipalityThe Local Self Governance Act 1999 (2055 BS)also gives the Municipality the followingpowers:(i) Power to Impose Service Charge(ii) Power to Fine

(i) Power to Impose a Service Charge

The municipality may impose a servicecharge for:78

i. providing solid waste management,

35


sanitation, sewerage and drainage andfacilities

ii. use of public toilets, bath houses,swimming pools, laundry ghat (orriverbank) or other such facilities

(ii) Power to Remove Structures and to FineThe Municipality has the same power toremove a structure obstructing sanitation andto impose a fine as the VDC except that theMunicipality may impose a fine of up toNRs.15,000.79

3. District Development Committee: TheLocal Self Governance Act 1999 (2055 BS) andthe Local Self Governance Regulation 1999(2056 BS) do not contain any specificprovisions regarding the responsibilities of theDDC in relation to sanitation. However, theDDC does have functions, duties and powersrelating to drinking water and protection ofthe environment and, therefore, it can beinferred that the DDC is also responsible forsanitation as far as it affects drinking waterand the environment.

4.3.2 Solid Waste Managementand Resource Mobilization CentreThe Solid Waste (Management and ResourceMobilization) Act 1987 (2044 BS) was enactedto improve the health conditions of the generalpublic by reducing environmental pollutioncaused by solid waste. The Act has establishedthe SWMRMC as the agency responsible forthe collection, transportation and disposal ofmunicipal solid waste in a safe andenvironmental friendly manner.

Section 3 sets out the functions and duties ofthe Centre in relation to solid wastemanagement which can be summarised asfollows:80

� formulation of policies in relation to solidwaste management

� planning and implementation of solidwaste management programs

� construction, repair and maintenance ofsolid waste facilities in cooperation withthe municipality

� transportation, collection and disposal ofsolid waste in a safe and environmentallyfriendly manner

� provision of public toilets, abattoirs, bathrooms etc

� training in relation to solid wastemanagement and environmental issues

� appointment of inspection officers� employment of people in solid waste

disposal and control

In addition to above mentioned functions andduties, the Solid Waste (Management andResource Mobilization) Regulation, 1989(2046 BS) provides for the collection,transportation and safe disposal of solid waste.In terms of sanitation services, the Regulationalso creates an obligation on the Center toprovide and operate public toilet and bathhouses in the public places.81

4.3.3 Nepal Water SupplyCorporationThe NWSC is a public corporation establishedby the Nepal Water Supply Corporation Act1989 (2046 BS) and is responsible for

36


providing sewerage facilities to the public.(The functions, duties and powers ofthe Corporation are discussed in detail inChapter 3.2)

4.3.4 Ministry of Physical Planningand Works1. Sanitation Division: The Ministry ofPhysical Planning and Works has establisheda Sanitation Division as the arm of the centralgovernment responsible for sanitation. TheHMG website82 sets out the functions of theDivision as follows:1. To formulate short-term and long-term

programs at the national level, implementthem and have coordination at the centrallevel among the programs, in order tomeet people’s requirements related withsanitation through out the Kingdom ofNepal.

2. To collect information and data on thepopulation benefited by urban and ruralrainwater and domestic sewerage(excluding road surface sewerage)projects, the outputs achieved by suchprojects (qualitative and quantitative) andother managerial aspects, to analyse suchinformation and data and provide theresults to the implementing agencies.

3. To analyse, or cause to be analysed,favourable and adverse impacts on theenvironment from implementation ofsewerage and sanitation projects, andgive directions to the implementingagencies to identify, and to do research

and study on, proper technology tomitigate adverse impacts and employsuch technology.

4. To provide assistance at the central levelto execute sanitation projects operated bythe non-governmental and private sector.

5. To render technical assistance to bilateraland multilateral organisations informulation, monitoring and evaluatingsanitation programs.

2. Department of Water Supply andSewerage: Similarly the Department of WaterSupply and Sewerage (DWSS) is alsoestablished by HMG under the Ministry ofPhysical Planning and Works. The mainactivities of the Department in relation todrinking water and sanitation are discussed inChapter 3.4 above.

Among other things, the Department has beeninvolved in the construction of drainage andsewerage systems in number of towns, theconstruction of sewerage treatment plants, thepromotion of sanitation and sanitationresearch.83

4.4 Obligations of Users ofSanitation ServicesThe obligation of users of sanitation servicescan be found in The Local Self Governance Act1999 (2055 BS), the Nepal Water SupplyCorporation Act 1989 (2046 BS) and the SolidWaste (Management and ResourceMobilization) Act 1987 (2044 BS).

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Many of the obligations of users of sanitationare covered in Chapter 2.8: Obligations ofConsumers of Drinking Water. The majorobligations of the public can be summarisedas follows:1. to pay any service charge as determined

by VDC or Municipality84 or any servicecharge or training fee imposed by theSWMRMC85

2. to construct, maintain, repair or managesanitation services provided by sanitationuser groups86

3. to follow the criteria prescribed by theVDC or Municipality for construction ofa building, house or other structure87

4. not to violate any of the prohibitedactivities regarding sanitation system (SeeChapter 2.8: Obligations of Consumers ofDrinking Water) or any of the activitiesprohibited by Section 5 of the Local SelfGovernance Act 1999 (2055 BS).

Chapter Irrigation55 Irrigation

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C H A P T E R 5Irrigation

5.1 The Policy andLegislationHis Majesty’s Government of Nepal’s policy onirrigation is contained in the Irrigation Policy2003 (2060 BS) which states its objective aseffective use of water resource for irrigation,institutional development of IWUA for thesustainable management of the irrigationsystem and promotion of knowledge, skill andfunctional efficiency of technical manpower,users and NGOs which are related to thedevelopment of the irrigation sector. Thepolicy stresses on the participatorymanagement approach by way of directinvolvement and investment of users formaintenance, repair and operation of irrigationsystem. The policy contains provision relatingto study, identification, selection,implementation procedure of the project;IWUA, resource mobilization and publicparticipation; irrigation system managementetc and much more focus is given toinvolvement of IWUA in every stage of projectdevelopment. HMG has amended some of theimportant provisions of the IrrigationRegulation 2000 (2056 BS) in tune with thepolicy guidelines.

The main pieces of legislation governingirrigation in Nepal are the Muluki Ain 1963(2020 BS) (National Code) and the Irrigation

Regulation 2000 (2056 BS) promulgated underthe Water Resource Act 1992 (2049 BS). Thefirst amendment is made in this Regulation andit came into force in February 23, 2004 as itis published in official gazette.

The Muluki Ain 1963 (2020 BS) is one of themost important pieces of legislation in Nepaland deals with all civil and criminal matters. Forour purposes, the most relevant section is Part3, and, in particular, the chapter on landcultivation (Jagga Abad Garneko) which dealswith traditional, farmer-managed irrigationsystems.88

The Irrigation Regulation 2000 (2056 BS) dealswith irrigation systems developed andoperated by HMG as well users groups andprovides for the handing over and operationof irrigation systems developed and operatedby HMG to Irrigation Water User Associations.

5.2 The Right to Use Waterfor IrrigationThe only right that exists over water in itsnatural state is the right to use water, not toown water. The right of an individual to usewater for irrigation is an extension of propertyrights.89 The right to use water for irrigation

41


is also one linked to the right to life (i.e. food).The Water Resources Act 1992 (2049 BS)provides that right to use water for irrigationis given priority over any other use of waterother than the use of water for drinking anddomestic purposes.90

The Muluki Ain 1963 (2020 BS) sets out theorder of priority given to landowners wantingto use water for irrigation (see Chapter 5.3.1for details).

The Irrigation Regulation 2000 (2056 BS) alsoestablishes a right to form a Water UserAssociation to use water for irrigation.However, the right to use water for irrigationis not absolute and is subject to certain dutiesand prohibitions which must be complied withby the user (see Chapter 5.6 for details).

5.3 Traditional FarmerManaged Irrigation SystemsThe Muluki Ain 1963 (2020 BS), chapter onland cultivation (Jagga Abad Garneko) laysdown certain rules in relation to traditional,farmer-managed irrigation systems. Irrigationsystems developed, managed and operated bythe farmers using local resources for collectivebenefit are called farmer managementirrigation system. The Irrigation Policy 2003(20060 BS) recognizes the traditional irrigationsystem as one kind of user managed irrigationsystem. However, Irrigation Regulation doesnot contain separate and specific provision forthe management of traditionally farmermanaged irrigation systems unless they areregistered as IWUA.

5.3.1 The Priority in whichLandowners are entitled to IrrigateThe Jagga Abad Garneko prioritizes the rightof different landowners to use irrigation wateras follows: 91

� Water shall not be available to others,until the requirements of the person whoconstructed the irrigation canal, at hisown expense, or with his own physicallabour, are met.

� In places where water has been shared inthe past, no one shall be allowed towithhold anyone else’s usual share ofwater so as to make the other person’sfield barren.

� After the field at the source of the wateris irrigated, the next landowner/farmershall use the water.

� If the owner of the field at the source isconfronted with any difficulty such thats/he cannot irrigate, the owner of thenext field shall use the water forcultivation.

� A new irrigation cannel may beconstructed upstream only if the amountof the water available to the fieldsirrigated by old channel is not reduced.

5.3.2 Construction of Dams andIrrigation ChannelsThe Jagga Abad Garneko provides thefollowing in relation to the construction ofdams and irrigation channels:92

� Dams and irrigation channels may beconstructed on any land, cultivated orbarren, to bring water for the cultivationof the land, provided that no obstruction

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shall be caused to the use of water byother land owners.

� The owner of land taken up by a dam orirrigation channel, except for barren landon which land revenue is not levied, shallbe compensated for the value of thecultivated land or be given other land inexchange.

� When a landowner (Raititarpha bata)incurs expenses for irrigation to bringbarren land into cultivation he will not becharged land revenue tax on the landtaken up by the dam or irrigationchannels if the land revenue on the newlycultivated barren land is double that ofthe land used for the dam or irrigationchannels.

5.3.3 Repair of Irrigation ChannelsThe Jagga Abad Garneko provides thefollowing in relation to the repair of irrigationchannels:93

� If an irrigation channel is destroyed, or afield is damaged, by a flood or landslide,the Mohi (landowners) themselves shallrepair the channel/field as far as possibleby jointly providing labour.

� If the resources of the Mohi (landowners)prove inadequate, then the Jimidar orTalukdar (owners of large tracts of landcultivated by others) shall submit a reportcontaining all the particulars to theconcerned HMG office requesting fundsfor the repairs. As Jimidari system isabolished in Nepal, in practice, VDCs dothis function now a days.

5.4 Irrigation Water UserAssociationsThe Irrigation Regulation 2000 (2056 BS)envisioned four kinds of irrigationmanagement systems: (i) an irrigation projectoperated by HMG, (ii) an irrigation projectoperated by an IWUA, (iii) an irrigationprojected jointly operated by HMG and anIWUA, and (iv) an irrigation project operatedby a licensee. In all management systems theRegulation focuses on community participationin irrigation system management. Below wewill discuss irrigation projects operated byHMG and IWUAs. Irrigation projects managedby a licensee are largely governed by theWater Resource Act 1992 (2049 BS) and itsRegulation (see Chapter 2.6 above).

5.4.1 Who May Form an IrrigationWater User Association?Rule 3 of the Irrigation Regulation 2000 (2056BS) provides that:

The users of following Irrigation System shallrequire to constitute a Water User Associationand apply to concerned Irrigation Office forthe registration.94

� developed and operated by HMG� repaired, maintained and improved by

HMG� developed and operated by users’ groups

A number of farmers or other users may jointogether to manage an irrigation system byforming an IWUA. The Irrigation Regulation2000 (2056 BS), promulgated under the Water

43


Resource Act 1992 (2049 BS) provides for thetransfer of irrigation systems to IrrigationWater User Associations. If the irrigationsystem is too large for the IWUA to operate,the Regulation also provides for the jointmanagement of the irrigation system by theIWUA and HMG.

5.4.2 Statute of Irrigation WaterUser AssociationsThe Irrigation Regulation 2000 (2056 BS) alsorequires IWUAs to have a statute to governthe association. Schedule 1 of the Regulationrequires two copies of statute of the IWUA tobe submitted along with the application for theregistration. However, it does not providedetails of the particulars to be contained in thestatute as does for DWUAs (see Chapter 2.7.2above)

5.4.3 Procedure for Registrationof an Irrigation Water UserAssociationThe procedure to register an IWUA seemssimilar to the registration of a Water UserAssociation for drinking water (See Chapter2.7.3)

Rule 3 of the Irrigation Regulation 2000 (2056BS) sets out the procedure to register anIWUA:� Users of an irrigation system must submit

an application to the concerned IrrigationOffice in the format as prescribed inSchedule 1 of the Regulation together

with the charge as prescribed in the sameschedule.

� The concerned Irrigation Office, on thereceipt of application shall assess theapplication and, if it deems proper,register the IWUA within seven days ofsubmission of the application and issue aregistration certificate in the formatprescribed in Schedule 2.

� Registration will be denied if, anydiscrepancy is found, or a Water UserAssociation is found to be alreadyregistered for the same irrigation area, orit would not be in compliance with thelaw to register it. If registration is denied,the applicant must be notified withinseven days, with reasons.

5.4.4 Executive Committee andGeneral Members of IrrigationWater User AssociationsRule 3 of the Irrigation Regulation 2000 (2056BS) provides that IWUAs shall have:� an executive committee not exceeding

eleven members and including at least33% women, and 2 members from Dalit,underprivileged and backward Janajatis

� at least sixty seven percent of generalmembers being users of the irrigation arearepresenting canal, secondary canal, sub-secondary canal, tertiary canal andwatercourse users.

Rule 4 provides that the election procedureand the tenure of office of the executive

44


committee shall be as prescribed in the statuteof the IWUA. However, Rule 4 (2) providesdissolution of the executive committee in thefollowing circumstances:� If two thirds of the general members of

the IWUA decided that the executivecommittee has failed to properly operatethe irrigation system,

� if it is found that the executivecommittee of a User Association hasacted against this Regulation, orapproved Constitution, the concernedIrrigation Office must ask executivecommittee to submit reasons within 15days. In case of not responding or reasonsare not satisfactory, the concerned officeshall submit a recommendation toDepartment of Irrigation for dissolutionof such committee and on the priorapproval of the Department of Irrigationdissolve such executive committee.

� If IWUA is not renewed within timeprescribed by rule 8A, executivecommittee is automatically dissolved.

� In case of such dissolution, election ofexecutive committee shall be heldpursuant to the Constitution of the UserAssociation, within three months throughDistrict Irrigation Water UsersOrganization, under direct supervision ofthe concerned Irrigation Office.

5.4.5 User CoordinationAssociationRule 7 of the Irrigation Regulation 2000 (2056BS) provides for the formation of a UserCoordination Association to be constituted to

represent and protect the interests of all usersof the irrigation system and inform to DistrictIrrigation User Organization and concernIrrigation Office. The User CoordinationAssociation is made up of one representativefrom each of the main canal, secondary canaland sub-secondary canal and tertiary canalsystems and its role is to coordinate theoperation, maintenance and supply of waterthrough the irrigation system. Rule 8 of theRegulation requires the User CoordinationAssociation to be registered with the IrrigationOffice in accordance with Rule 3 of theRegulation.

5.4.6 Power, Functions and Dutiesof Irrigation Water UserAssociationsRule 5 of the Irrigation Regulation 2000 (2056BS) sets out the functions and duties of anIWUA in the supply of irrigation as follows:� To repair and maintain; operate and

manage the Irrigation System providedthat replacement or change of physicalstructure, equipment or machinesaffecting the irrigation system needs priorapproval from the concerned IrrigationOffice.

� To make available water to user farmersat the appropriate time and in the properamount according to the type of crop andthe condition of the land.

� To keep records of land for which servicescould not be provided and recommendthat such users be exempt from payingservice charges.

� To distribute water to new user farmers

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without causing any harm to existingusers.

� To mobilize public participation for themaintenance of the irrigation system.

� To construct additional structures toincrease irrigable area considering thesupply of water.

� To collect service charge from the userand deposit to prescribed place

� Inform concerned irrigation office if anyperson destroy, damages or createhindrances

IWUA may request technical advice, in relationto the exercise of above mentioned power,function and duties, from the concernedIrrigation Office and if such request is made,the concerned Irrigation Office shall providethe necessary technical advice95 .

Rules 6 and 9 of the Irrigation Regulation2000 (2056 BS) further provide that the IWUAis required to do the following in relation tofinances and maintenance:� establish a separate fund for the

maintenance of the irrigation system andits structures and deposit at least ninetypercent of the service charge and otherincome to the fund

� maintain up-to-date records includingrecords of service charges owed,expenditure incurred for maintenance aswell as the balance of the fund

� within three months of expiry of fiscalyear, submit its report to the concernedIrrigation Office along with the financialstatements of the IWUA and all details of

the services made available to users in thatfiscal year

The recent amendment of the Regulationrequires renewing IWUA within the 90 days ofthe end of financial year. If IWUA submitapplication stating reasons for delay, the periodwill be extended for another 90 days bycharging Rs.100 as late fine and shallbe renewed.

5.4.7 Provision of IrrigationServices to a UserIf a person wishes to use the services ofan irrigation system operated by HMG or byan IWUA they are required to make anapplication for service to the concernedProject Office.96

In relation to the provision of irrigationservices, the Project Office, and the IrrigationOffice, has the following duties and powers:1. Duty to Provide Irrigation Services on

Application2. Power to Reduce Service3. Power to Cease Service4. Duty to Notify User of Reduction/

Cessation of Service5. Power to Impose Conditions of Use

1. Duty to Provide Irrigation Services onApplication: Upon receipt of an application forservice by a user, the Project Office shall deliverirrigation services after satisfying itself that theservice can be provided. If the service cannotbe provided for technical or other reasons, theapplicant shall be notified accordingly.97

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Rule 21 of the Irrigation Regulation 2000(2056 BS) prescribes the basis on whichirrigation services will be provided as follows:A. geographical locationB. area of landC. quantity of water available at the sourceD. type of crop to be cultivatedE. nature of soil on the landF. capacity of the structure and other

technical matters

If an applicant is not satisfied with the decisionof the Project Office not to provide service s/he can appeal to the concerned IrrigationOffice within thirty-five days of such decision.The concerned Irrigation Office shall conductthe necessary inquiries and issue an orderwhich shall be final.98

2. Power to Reduce Service: Rule 22 of theIrrigation Regulation 2000 (2056 BS) providesthat the Project Office may reduce irrigationservices to a user when:99

� the demand for water exceeds theavailability of water at the source; or

� the demand for water exceeds thecapacity of structure.

Any reduction of irrigation services must bemade in coordination with IWUA subject tothe criteria specified in Rule 21 and inconsultation with the concerned IrrigationOffice and concerned local bodies body.

3. Power to Cease Service: The Project Officemay stop providing irrigation services in thefollowing circumstances:100

� If the user has failed to pay the servicecharge, Project Office may cease servicesuntil such service charges are paid.

� If the user has violated any conditionprescribed in the agreement of servicebetween the Project Office and the user,the Project Office may cease services untilthe breach is remedied.

� If the irrigation structure has beendamaged, or there is a danger of damageoccurring, the Project Office may ceaseservice until the necessary repairs andmaintenance are completed.

4. Duty to Notify User of Reduction/Cessation of Service: If the Project Officeintends to reduce or cease irrigation servicesto a user they must notify the concernedIWUA and local bodies body to that effect.101

5. Power to Impose Conditions of Use: Rule20 of the Irrigation Regulation 2000 (2056 BS)states that in the case of an irrigation systemdeveloped and operated by His Majesty’sGovernment, the concerned Irrigation Officemay specify conditions of use to be compliedwith by the user provided that the conditionsare not contrary to the Water Resource Act1992 (2049 BS), the Irrigation Regulation 2000(2056BS) or, in the case of a licence holder,any conditions specified in the licence.

5.4.8 Transfer of Irrigation Systemto Irrigation Water UserAssociationRule 10 of Irrigation Regulation 2000 (2056BS) provides that a project developed by His

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Majesty’s Government or a canal, secondarycanal, sub-secondary canal, tertiary canal orwatercourse of such project may be transferredto an Irrigation Water User Association.

HMG must impose terms and conditions inrelation to the following when transferring anirrigation project to an IWUA:102

� Restricting the Association from pledgingor transferring ownership of the structureto others by way of sale, donation,exchange, agreement or otherwise.

� Prohibiting the Association from causingdamage, spoiling or changing thestructure, provided that changes may bemade for the purpose of maintenance andthose goods including the tools andequipment which can not be re-used andcould be damaged or spoiled if they arekept idle may be sold or transferred onprior approval of the concerned IrrigationOffice that transferred the Project.

� Prohibiting the Association from carryingout any activities that reduces thequantity and quality of the wateravailable for irrigation.

� Prohibiting the Association from reducingthe quantity of water available to usersexcept in circumstances provided in thisRegulation

� Restricting the Association fromauthorizing any other person ororganisation to operate the project

5.4.9 Joint Management by HMGand Irrigation Water UserAssociationRule 13 of the Irrigation Regulation 2000

(2056 BS) provides for the joint managementof large irrigation projects by HMG and anIWUA as follows:� Large irrigation projects which can not be

fully managed by an IWUA may beoperated jointly by agreement betweenHMG and the IWUA.

� The obligations, responsibilities andactivities to be carried out in accordancewith the Act and this Regulation by theWater User Association, includingcollection of service charge, the share ofrevenue collected to be retained by theWater User Association and arrangementsfor maintenance shall be specified in theAgreement between HMG and the WaterUser Association.

The recent amendment in the Regulation hasopened the way to provide responsibility ofmaintenance, repair and operation of jointlymanaged or government managed irrigationsystem in contract to any individual, IWUA orNGO on the basis of the competitiveness.Similarly it also provides that if local bodyrequests to take the responsibilities of regularmanagement of jointly managed system, theresponsibility of government can be transferredto local body after assessing the technicalability and resource availability.

5.4.10 Project CommitteeIn relation to irrigation projects as determinedas large by HMG, Rule 31 of the IrrigationRegulation 2000 (2056 BS) provides for theformation of a Project Committee to carry outactivities necessary for the completion ofthe project.

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The chairperson of the Project Committee shallbe the Secretary of the Ministry of WaterResources, the member secretary shall be theChief of the concerned project and themembers shall be the Director General of theDepartment of Irrigation, the Director Generalof the Department of Agriculture andrepresentatives from the Ministry of Finance,the National Planning Commission and theMinistry of General Administration.103

Rule 33 of the Irrigation Regulation 2000(2056 BS) sets out the functions and duties ofthe Project Committee as follows:� To complete the project within the

stipulated timeframe.� To arrange for the technical works such

as design, drawings etc of the� To approve the number of staff necessary

for the project.� To undertake any other work necessary to

complete the project.

5.4.11 Monitoring of IrrigationSystems and ReportingHMG shall form a monitoring committeetaking into account the service provided bysystem, availability of water, crop production,increase in production, institutional andfinancial condition of the IWUA and changesin the area. The monitoring and evaluationcommittee shall comprise including arepresentative of the concerned IrrigationWater User Organisation. The Committee shallmonitor the status of the irrigation system,user participation and the condition of the

structure among other things. The monitoringcommittee shall submit a report to HMGaccordingly.104

5.5 Obligations of Users ofIrrigation ServicesRule 25 of the Irrigation Regulations 2000(2056 BS) imposes the following obligations onusers of irrigation services:� To inform the Project Office immediately

of any known, intended or attemptedunauthorized use or misuse of the service,any leakage of water or any othersuch activity.

� To provide the Project Office with anynecessary assistance with construction,repair, maintenance and protection of theirrigation structure.

Rule 29 and 30 of the Irrigation Regulation2000 (2056 BS) imposes a duty on users ofirrigation services to pay the service charge tousers association or person or institutionsauthorised to collect service charge.Responsibility of collection of service chargelies in the IWUA in joint managed irrigationsystem. The service charge may be paid in alump sum or in instalments. The mode ofpayment, the time limit for payment and anylate fee shall be determined by the ServiceCharge Fixation Committee comprised of Chiefof the concerned Irrigation Office, arepresentative of the District Irrigation Office,chairman of the concerned Water UserAssociation and representative of DistrictIWUA Organization as member105 .

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The new amendment of the IrrigationRegulation sets a system of sharing of servicecharge among HMG, IWUA and CentralRepair and Maintenance Fund operated byDoI. Schedule 3 determines the share of IWUAranging from 20 – 95 % of collected servicecharge in accordance with the involvement ofIWUA in the management of irrigation system.The amendment in Rule 42 requires that usershave to contribute certain percent of theinvestment as specified in Schedule 4 whichrange between 3-15 percent of theinvestment. Users must provide land requiredfor the construction of canal or subsidiary canalwhich can be included in the amount to becontributed by users.

Rule 39 of the Irrigation Regulation 2000(2056 BS) prohibits all people includingirrigation service users from the followingactivities in order to protect irrigation structuresand prevent unauthorized use:� trespassing on irrigation structures� destruction, closing or make any

alternations to the irrigation structure� increasing or decreasing the quantity of

water flowing through the irrigationstructure

� polluting the water used for irrigation� causing damage to or moving the

irrigation signs and signals� moving, transferring or causing damage

to any equipment controlling the flow ofwater

� moving, grazing or leave unattendedcattle within a prohibited irrigation area

� driving any vehicle within a prohibitedirrigation area without permission fromthe concerned authority

� taking stone, sand or concrete from theland occupied by an irrigation structure

� breaking, or attempting to break, theembankment of a canal, to alter the flowof water to an irrigation structure

� controlling the flow of water to anirrigation structure by obstructing thecurrent of a river or stream so as to makeit less beneficial

� encroaching on a river, stream, waterfall,lake or pond so as to adversely effect anirrigation system

� pumping water without permission.

Chapter Hydropower66 Hydropower

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C H A P T E R 6Hydropower

6.1 The Policy andLegislationHMG has endorsed separate HydropowerDevelopment Policy 2001 with the objectiveof promotion of hydropower development,extension of standard electricity servicethroughout the country and export abroad.This policy also provides for the sharing ofbenefit in the local level and promotesinvolvement of community/cooperativeorganization, local bodies and private sector inthe production, distribution and transmissionof electricity. Among others, it also providesfunctional policy related to the environmentalflow, investment, rural electrification andbenefit sharing (Royalty sharing), transfer ofproject, electricity purchase, l icense,institutional reform etc.

The main legislation governing hydropower inNepal is the Electricity Act 1992 (2049 BS) andits regulation, the Electricity Regulation 1993(2050 BS). The Water Resource Act 1992(2049 BS) and the Water Resource Regulation1993 (2050 BS) also contain provisionsregarding the use of water for hydropowergeneration. The Electricity Act 1992 (2049 BS)and its Regulations, deal with the managementof electricity in Nepal, including the survey,generation and distribution of electricity. It

regulates the electricity sector by a system oflicensing. The Act applies to the entireelectricity sector, not just electricity generatedby hydropower. The Act vests ownership ofany assets or structures related to electricityin HMG and imposes an obligation on alicensee to pay royalties.

6.2 Right to Use Water forHydropowerNeither the Electricity Act 1992 (2049 BS), northe Electricity Regulation 1993 (2050 BS),explicitly provide for a right to use water forhydropower. However the Constitution of theKingdom of Nepal, under Article 12,guarantees the freedom to practice anybusiness or profession, which would thereforeinclude hydropower.106 This right is upheld byHydropower Policy 2001 (2058 BS) and theElectricity Act 1992 (2049 BS) subject toobtaining a licence.107

The Water Resource Act 1992 (2049 BS)provides that the use of water for hydropowershall have priority over the use of water forcottage industries, navigation and recreationbut not over the use of water for drinking anddomestic use, irrigation or agriculture.108

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6.3 Licensing of Hydropower

6.3.1 Who Must Obtain a LicenceSection 3 of the Electricity Act 1992 (2049 BS)requires a person or corporate body to obtaina licence for the survey, generation,transmission or distribution of electricity:

No person shall be entitled to conducta survey, generate, transmit ordistribute electricity withoutobtaining a licence under this Act.

An exemption is given if the electricity to begenerated is less than 1000 kilowatts howeverin case of the project with capacity of 100-1000 kilowatt certain information must still beprovided to the prescribed officer.109

6.3.2 How to Obtain a LicenceTo obtain a licence for the survey, generation,transmission or distribution of electricity anapplication form must be submitted to theSecretary of Ministry of Water Resourcethrough Department of ElectricityDevelopment along with a financial, technicaland environmental study report and otherprescribed particulars.110

Rule 24 of the Electricity Regulation 1993(2050 BS) provides that an application for alicence for the survey of electricity must besubmitted together with 15% of the licencefee. For a licence for the generation,transmission and distribution of electricity theapplication fee is prescribed in Schedule 11.However, 33.33 percent amount must be paidfor obtaining license for one of them.

A person or corporate body, generating,transmitting or distributing electricity prior tothe commencement of the Electricity Act 1992,shall be required to submit an application forlicence within one year from thecommencement of the Act.111

1. Hydropower Production of 100-1000

Kilowatts (Mini Micro): Although a Nepaliproducer of hydropower electricity of up to1000 kilowatts is exempt from obtaining alicence, Rule 3 of the Electricity Regulation1993 (2050 BS) requires the followingparticulars to be provided to Department ofElectricity Development:1) detailed description of the project2) map of the project (showing main

structure)3) source of water and quantity of water to

be utilized4) area where electricity is to be distributed

and estimated number of consumers tobe benefited

5) whether the water resource to be utilizedhas already been utilized by another ornot, if so, particulars of the same

6) other necessary particulars

2. Hydropower Production Over 1000

Kilowatts (Mega): Rule 4 provides that toapply for obtaining licence to survey only, thefollowing particulars are required:1) map of the project site (including a

preliminary sketch of the proposed powerhouse, dam, reservoir canal, tunnel,substation, transmission line and whichclearly shows any village/town, historicalplaces, road way etc inside the project site)

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2) area of water resource to be surveyedand quantity of water to be utilized

3) estimated cost and time for completion ofthe project (both for survey andconstruction)

4) total capacity of the project and estimatedannual production

5) if electricity is to be produced other thanby using water resources, the kinds of thefuel and method of acquiring such fuelshould be mentioned

6) other necessary particulars

To apply for a licence for the production ofelectricity the following particulars must beprovided to the Department of ElectricityDevelopment.112

1) details of the project (including a map ofthe project site, the source of theelectricity to be produced, estimated costand time to complete the project, nameof any partners in the project and typesof their involvement, full name andaddress of the person or corporate bodyand its directors with whom ownership ofthe project shall be vested)

2) if mineral fuels are to be used, the kindsof fuel, method of its supply and storageand any agreement or letter of intention/interest and other relevant documents

3) feasibility analysis (including technicaldescription together with a detail map ofthe project, economic analysis, descriptionof the consumer and client, estimatedquantity of the electricity to be sold and,if any transmission or distribution systembelonging to other person or corporate

body is to be used in supplying theelectricity, a description of the same)

4) mode of finance (estimated cost of theproject, economic condition of theinvestor, commitment of the financialinstitutions that will be involved directlyin the project and the liabilities, sharecapital and debt of the investor)

5) acquisition or possession of house and land(description of landowner/s whoseproperty will be acquired and the total areaof public or private land to be acquiredfor the project temporally or permanently)

6) analysis of environmental effect113

(measures to be taken to lessen theadverse effects of the project on theenvironment, measures to be taken forthe conservation of aquatic animals andthe water environment, the social andeconomic effect of project for theconcerned area, utilization of local labour,source and materials, benefits to the localpeople after completion of the project,training to be provided for local people inrelation to construction, maintenance andoperation, facilities required for theconstruction site, safety arrangements,the possible effect on concernedlandowners of the operation of theproject and details of the people to beevacuated and plans for their relocation)

7) details of the sale and purchase of theelectric power of the project (agreementor letter of intention if any and relateddocuments)

8) description of electricity transmission lineof the project

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9) details of the supply, transportation andstorage of fuel (agreement or letter ofintention, if any, and other documentsrelating to the same)

10) other necessary matters

6.3.3 Processing of LicenceApplicationsAfter receiving the application, the Secretaryof Ministry of Water Resource or Departmentof Electricity Development assesses theapplication and grants the licence within theprescribed time frame.114

If the applicant has not submitted all of thenecessary documents, reports or otherparticulars, the Department of ElectricityDevelopment is required to give notice to theapplicant, within 15 days in the case ofapplication for survey, and within 45 day incase of an application for generation,transmission or distribution of electricityspecifying a reasonable time limit for thesubmission of such documents, particulars orreports. The date of submission of thesedocuments is deemed to be the date ofsubmission of application.115

In the case of an application for licence forgeneration, transmission or distribution ofelectricity, Rule 16 of the Electricity Regulation1993 (2050 BS) requires Department ofElectricity Development to publish a publicnotice stating the details of particulars for theinformation of general public. Any person maylodge an objection or comment within 35 daysfrom the date of the publication on the

grounds that utilization of the water resourcefor construction and operation of the project isl ikely to have an adverse effect. TheDepartment of Electricity Development maytake such objections or comments into accountand impose conditions as part of the licence tobe followed by the applicant in order to lessenthe adverse impact.

After assessing the application, the Secretary ofMinistry of Water Resource, if it deems proper,shall issue licence to the applicant in accordancewith the application, or with necessaryamendments, in the prescribed format.116

If the application is approved a licence must beissued within the following timeframe:117

� in the case of a licence for survey, within30 days of receipt of the application

� in the case of licence for generation,transmission or distribution of electricity,within 120 days of receipt of theapplication

Section 5 of the Electricity Act 1992 (2049 BS)specifies the term (duration) of the licenceas follows:� in the case of a licence for survey of

electricity, maximum term shall be 5 years� in the case of a licence for generation,

transmission or distribution of electricity,maximum term shall be 50 years

Provided that, in the case of licence issued fora term of less than 5 year, the licensee mustrenew the licence one year prior to the expiryof the licence.

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6.3.4 Financial Incentives forLicenseesSection 12 and 13 of the Electricity Act 1992(2049 BS) sets out certain financial incentivesto encourage investment in hydroelectricityincluding incentives regarding:1. Income Tax and other concession2. Customs Duty and Sales Tax3. Foreign Currency

1. Income Tax and other concession: Section12 of the Electricity Act 1992 provides thefollowing income tax incentives in relation tohydroelectricity production:� A person or a corporate body who is

generating, transmitting or distributinghydroelectricity up to 1000 kilowatts shallbe exempt from income tax.

� A licensee who holds a licence forhydroelectricity generation, transmissionor distribution shall be levied income taxat a rate 10 percent less than thecorporate income tax rate.

� A licensee who holds a licence for hydroelectricity generation, transmission ordistribution shall be exempted fromincome tax for fifteen years from the dateof commencement of electricitygeneration, transmission or distributionfor commercial purposes.

� A licensee who operates and manages ahydroelectricity generation plant,transmission or distribution line owned byHMG, or who purchases the same fromHMG, shall be exempted from theincome tax for five years from the dateof such undertaking.

� A licensee who reinvest in ahydroelectricity generation plant,transmission or distribution line either todiversify, or to extend capacity by 25% ormore, or to modernize the technology, orto develop a subsidiary industry, shall beentitled to deduct 50% of the cost of newfixed assets from the net income118 earnedfrom such hydroelectricity generation,transmission or distribution line. Suchdeduction can be made in either a lumpsum or in the instalment for 3 years.

2. Custom Duty and Sales Tax: Section 12 ofthe Electricity Act 1992 (2049 BS) providesthat custom duties and sales tax shall be leviedat the prevailing rate if the importedconstruction equipment, machine, tools andequipment required for repair andmaintenance or spare parts for hydro electricitygeneration, transmission or distribution areavailable local industries.

However, if the materials imported are notproduced in Nepal, only one percent customduties shall be levied and no charge will belevied for either the import licence or sales tax.

3. Foreign Currency: Section 13 of theElectricity Act 1992 (2049 BS) provides that,where foreign currency has been invested inthe generation, transmission or distribution ofhydroelectricity, as a loan or share capital,HMG shall make available foreign currency, atthe prevailing market rate for remittance ofthe investment, or repayment of the principaland interest of loan.

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In addition to these, a licensee shall also enjoysuch facilities as provided by prevailing lawprovided that the same facility under differentlaws cannot be applied in the same situationto double the benefit received.

6.3.5 Rights of LicenseeOnce a licence has been issued, a licensee hascertain rights and is entitled to certain financialbenefits under the Electricity Act 1992 (2049BS) and the Electricity Regulation 1993(2050 BS).

Rule 20 of Electricity Regulation 1993 (2050BS) provides that a licensee, who has obtaineda licence for the generation, transmission anddistribution of electricity, shall have right to usewater resources, for works specified in thelicence, to the extent of the water resourcesof the area specified in the licence.

6.3.6 Duties of LicenseeUnder the Electricity Act 1992 (2049 BS) andthe Electricity Regulations 1993 (2050 BS) alicensee has certain duties to:1. Pay Royalties2. Pay Licence Fee3. Start Work4. Submit Report5. Protect Environment6. Notify Public of Service Interruption7. Duty to Renew Licence8. Obtain New Licence

1. Duty to Pay Royalties: Section 11 of theElectricity Act 1992 (2049 BS) requires alicensee to pay royalties to HMG as follows:

� for up to fifteen years from the date ofgeneration of electricity for commercialpurposes, at a rate of NRs.100 for eachinstalled kilowatt per annum plus 2% ofthe average tariff per unit (per kilowatthour)

� after 15 years, at a rate of NRs.1000 foreach installed kilowatt per annum plus10% of the average tariff per unit

2. Duty to Pay Licence Fee: Rule 24 of theElectricity Regulation 1993 (2050 BS) imposesa duty to pay a licence fee as prescribed inSchedule 11. At the time of application 15%of the licence fee must be paid in the case alicence to survey and 33.33% must be paid inthe case of a licence for one among generation,transmission or distribution of electricity.

3. Duty to Start Work: Rule 21 of theElectricity Regulation 1993 (2050 BS) requiresa licensee to start physical works within threemonths of obtaining licence in case of survey,and within one year in case of the generation,transmission or distribution of electricity andto inform the Department of ElectricityDevelopment of the same.

If the licensee is unable to start the workswithin time limit, the licensee may makeapplication for extension stating reasons forthe delay and the time limit may be extendedif such reasons are deemed proper andsufficient.

4. Duty to Submit Report: Once work hasstart, the licensee, is required to submit a

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progress report to the Department ofElectricity Development in every six monthuntil completion of the work.119

5. Duty to Protect Environment: The licenseehas a duty to protect the environment whilecarrying out electricity generation,transmission or distribution, so that there willbe no substantial adverse effects on theenvironment by way of soil erosion, flood,landslide or air pollution etc.120 In relation towater pollution by hydropower see Chapter8.1.5 below.

6. Duty to Notify Public of ServiceInterruption: The licensee has a duty to notifythe public of any interruption to service for thepurpose of repair and maintenance bypublishing a notification at least 24 hour inadvance of the interruption.121

7. Duty to Renew Licence: The licensee mustrenew its licence for the next period, one yearbefore expiry of the term of the licence andpay a fee equal to 10% of the amountprescribed in Schedule 11 of the ElectricityRegulation 1993 (2050 BS).122

8. Duty to Obtain New Licence: A person orcorporate body, generating, transmitting ordistributing of electricity prior to thecommencement of the Electricity Act 1992(2049 BS), shall be required to submit anapplication within one year from thecommencement of the Act.123

6.3.7 Cancellation of LicenceSection 8 of the Electricity Act 1992 (2050 BS)provides that if the licensee performs any actcontrary to the licence, Act or Regulations, orbreaches the conditions of the licence, theSecretary or Department of ElectricityDevelopment may issue an order requiring thelicensee to take steps to stop such act or makean improvement to comply with the licence,Act or Regulations within a certain time.

If the licensee fails to comply with the orderwithin time, the Secretary of Ministry of WaterResource may cancel the licence. Prior tocancellation of the licence, the Secretary of theMinistry of Water Resource must givereasonable opportunity to the licensee toexplain.124

6.4 Role of the StateThe public trust doctrine places HMG astrustee of all natural resources on behalf of theNepali people.125 As such the state isempowered to develop and manage naturalresources, including hydropower, to serve thepublic interest. The Electricity Act 1992 (2049BS) sets out the following functions, duties andpowers of the state in relation to hydropower:1. Licence Issue2. Enter into an Agreement3. Purchase Electricity4. Ownership5. Fix Quality Standards6. Acquire Land and House7. Generate and Develop Electricity8. Develop Hydropower

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1. Licence Issue:HMG through the Department of ElectricityDevelopment has the power and a duty toissue a licence for the development ofhydropower.126

2. Enter into an Agreement:HMG may enter into an agreement with alicensee in relation to the bulk purchase ofelectricity, the guarantee of investment capitalor other financial and technical matters.127

3. Purchase Electricity:If a licensee wishes to sell electricity in bulk,HMG may purchase such electricity forconnection in the national grid. The rate atwhich the electricity is purchased shall bedetermined on the basis of either a fixedpercentage of avoided cost, or cost plus togeneration cost, or a fixed percent of theaverage tariff of the Nepal Electricity Authority.When fixing the rate, calculations must showthat the investment made by the licensee canbe recovered within 25 years.128

4. Ownership:

HMG shall own any land, buildings,equipment and structures related to anelectricity generation plant or a transmissionand distribution line after expiration of theterm of the licence if they are established inmore than 50% of total investment by aforeign national or corporate body.129

5. Fix Quality Standards:

HMG may, by notification published in theNepal Gazette, fix the quality standard for

electricity generated, transmitted anddistributed pursuant to the Electricity Act1992.130

6. Acquire House or Land:

HMG has the power to acquire or use houseand land for the purpose of generation,transmission or distribution of electricity.131

More details on acquisition of property can befound in Chapter 7.

7. Generate and Develop Electricity:Section 34 of the Electricity Act 1992 (2049 BS)states that nothing mentioned in the Act shallbe deemed to prevent HMG from generatingor to developing electricity on its own.

8. Develop Hydropower:The public trust doctrine implies a duty on thestate to develop hydropower for the benefit ofthe people. Section 36 of the Electricity Actprovides that, in order to develophydroelectricity, encourage private sectorentrepreneurs to develop hydroelectricity, andto follow up works relating to hydroelectricitydevelopment, a hydroelectricity unit shall beconstituted in the Minister of Water Resources.

6.5 Royalty sharing with localbodiesHMG has begun disbursing 10 per cent of theroyalties it earns from electricity sales to theaffected DDC as per the Local self GovernmentAct and Regulation.132 The Hydropower Policy2001 (2058 BS) contains provision to disburseone percent royalties obtained from theelectricity sales to the affected VDC to use for

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rural electrification. An Ordinance was passedand issued in January 2004 amended someprovision of Local Self Governance Regulationrelating to revenue sharing. According the newamendment, the DDC where power house ismade shall be entitled to obtain 12% of

royalty of the electricity sale from thegovernment. Thirty percent of royalty shall beallocated to concerned Development Region inwhich electricity is produced. By making thisprovision, HMG has recognized the notion oflocal right.

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Chapter77Acquisition andCompensationAcquisition andCompensation

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C H A P T E R 7Acquisition and Compensation

7.1 The Right to PropertyArticle 17 of the Constitution of the Kingdomof Nepal 1990 (2047 BS) guarantees the rightto property as a fundamental right. Howeverthis right is not absolute and the State mayacquire property, in the public interest, subjectto the provision of compensation.

Article 17 provides that:(1) All citizens shall, subject to the existing

law, have the right to acquire, own, sellor otherwise dispose of property.

(2) The Sate shall not acquire, requisition orcreate any encumbrance on the propertyof any person except in public interest.

(3) The basis of compensation andprocedure for awarding compensationfor any property requisitioned, acquiredor encumbered by the State in the publicinterest, shall be as prescribed by law.

7.2 The Right to AcquirePropertyArticle 17 of the Constitution gives the Statethe right to acquire property in the publicinterest and subject to compensation.133 Thisright is provided for more specifically and forcertain purposes only by legislation. Sec 3 ofLand Acquisition Act 1977 (2034 BS) alsoempower government to acquire land for thepublic purpose. The Act also provides that

government may avail land to anyorganization on the request. In this case, theAct requires that the compensation and otherexpenditure must be paid by suchorganization.134

7.2.1 Acquisition for theUtilization of Water ResourcesSection 16 of the Water Resource Act 1992(2049 BS) gives HMG the right to acquire orutilize the house and land of others on theapplication of the licensee, for the followingpurposes:1. for the construction of a dam or barrage,2. for the construction of a canal, ditch

or tunnel3. for the construction of a water tank, on

the surface or underground, or for layingpipes

4. for the construction of a pond orinstallation of a water distribution centre

5. for performing any other necessary workrelated to water resource development

Section 16(3) further provides that HMG mayprohibit the use of premises or land located inan area where such construction work is takingplace, or a certain distance from suchconstruction work, or for any other propose.HMG or the licensee must pay compensation,

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as fixed by the compensation fixationcommittee, to the concerned person for anydamage or loss caused by such prohibition.

Rule 33 of the Water Resource Regulation1992 (2050 BS) specifies the circumstances inwhich such prohibition can be invoked underSection 16(3) of the Act as follows:� HMG may prohibit the use of houses and

land situated within the area of theproject taking into account the type ofproject, the project structure and thecapacity of the project, etc.

� HMG shall publish a public noticeregarding the prohibition at the mainplaces of the concerned project area,project office, DDC, DistrictAdministration Office or Land RevenueOffice.

7.2.2 Acquisition for DrinkingWater and SanitationSection 16 of Nepal Water Supply CorporationAct 1989 (2046 BS) gives HMG the right toacquire land and provide land to the NWSCfor the following purposes:1. construction of a reservoir2. construction of structures relating to

drinking water and sewerage3. other works to achieve the objective of

the Corporation

Similarly, the Drinking Water Regulation 1998(2055 BS) also contains provisions regardingthe acquisition of land and the prohibition ofuse of land which are similar to those in theWater Resource Regulation 1993 (2050 BS)discussed above.

7.2.3 Acquisition for HydropowerSection 33 of the Electricity Act 1992 (2049BS) gives HMG or a licensee the right toacquire or prohibit use of land or house for thepurpose of generation, transmission ordistribution of electricity.

Rule 66 of Electricity Regulation 1993 (2050BS) gives HMG the right to prohibit the useof land at or around a project construction site,in relation to generation, transmission ordistribution of electricity, by publishing a publicnotice in Nepal Gazette.

If a licensee wishes to acquire land or houses/he must submit an application to HMG.After assessing the application HMG maymake the house or land available to thelicensee or the HMG may prohibit the use ofhouse or land located a prescribed distancefrom a place where construction work is beingcarried out.

HMG or the licensee must pay compensationto an aggrieved person for any damage or losscaused by such prohibition or acquisition.

The detail provisions and procedures for theacquisition of land are incorporated in LandAcquisition Act 1977 (2034 BS). The Act hasincorporated provision relating to the authorityto decide and preliminary requirement for landacquisition, initiation of preliminary process,compensation, notice of land acquisition,complain of land owner, compensationdetermination, transfer of land ownership,cancellation of record from land revenueoffice etc. This legislation is comprehensive

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legislation applicable for land acquisitionapplies to water resource developmentsector too.

7.3 The Right toCompensationThe Constitution of the Kingdom of Nepal1990 (2047 BS) guarantees right to becompensated for property acquisition. Article17(3) provides that:

The basis of compensation and procedure forawarding compensation for any propertyrequisitioned, acquired or encumbered by theState in the public interest, shall be asprescribed by law.

Compensation is also provided for in theWater Resource Act 1992 (2049 BS), theWater Resource Regulation 1993 (2050 BS)and the Drinking Water Regulation 1998(2055 BS), and also by the Electricity Act 1992(2049 BS) and Electricity Regulation 1993(2050).

Section 10(3) of the Water Resource Act 1992(2049 BS) provides that HMG shall paycompensation as prescribed for land, buildings,and equipment or structures relating toutilization of water resources acquired byHMG. The amount of compensation shall bedetermined on the basis of market price (afterdeducting wear, tear and depreciation).

Similarly, Rule 34 of the Water ResourceRegulation 1993 (2050 BS) provides that:1. The amount of compensation to be given

to an aggrieved person due to prohibitionor acquisition shall be determined by theCompensation Fixation Committee.

2. Compensation shall be given to theconcerned person immediately, except ifadditional prohibition on the use of thehouse and land is to be made.

Rule 16 of the Drinking Water Regulation1998 (2055 BS) also provides that the suppliershall have to pay compensation to anaggrieved person who has sustained loss dueto prohibition imposed by HMG on using landor house for the purpose of the protection ofconstruction work relating to projectdevelopment and utilization by licensee.

Similarly, Section 33 of the Electricity Act 1992(2049 BS) and Rule 87 of the ElectricityRegulation 1993 92050 BS) provides that:1. HMG or licensee shall pay compensation

to the concerned person for land, buildingand equipment acquired, requisitioned orused by an electricity generationproject.135

2. HMG or the licensee shall paycompensation, as prescribed to theconcerned person for damage or loss dueto the prohibition from using house andland situated within the area of a projector a fixed distance from the site of aproject for any specified purpose.

3. The right to be compensated shall onlyarise in relation to construction worksrelating to electricity projects which areconstructed after the commencement ofthis Regulation.

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4. Compensation shall not be paid if:i. the land in question is underneath

the service line installed for thepurpose of supplying electricity tothe land owner

ii. the houses are attached to eachother in a densely populated urbanor rural area and the main line passesthrough the wall of one house toanother house to connect electricity

7.4 Compensation FixationCommitteeThe amount of compensation to be given toan aggrieved person for the requisition,acquisition or use of property is determined bydifferent Compensation Fixation Committeesprovided for by the Water Resource Regulation1993 (2050 BS), the Drinking WaterRegulation 1998 (2055 BS) and the ElectricityRegulations 1993 (2050 BS).

Rule 35 of the Water Resource Regulationprovides for two Compensation FixationCommittees for acquisitions for differentreason:136

1. Compensation Fixation Committee forAcquisition etc by HMG. As per sec 10(3) of the Water Resource Act 1992(2049 BS), HMG can acquire or ownland/house, equipment or structuresrelating to the use of water resource forwide public purpose. For the fixation ofcompensation in such cases, theChairman of the Committee shall be aperson nominate by HMG and themembers shall include a representative of

the concerned office of the project relatedto the utilization of the water resourcesand an expert related to water sources asnominated by HMG.

2. Compensation Fixation Committee for

Acquisition etc by a Licensee or HMG.To determine the amount ofcompensation for prohibition on use andacquisition of land or house by HMG orLicensee, the committee comprisesChairman and members same as aboveand in addition members shall include theowner of the immovable propertysustaining loss or his representative, arepresentative from the District LandRevenue Office where the property issituated and a representative from theconcerned VDC or Municipality whereproperty is situated.

The Compensation Fixation Committee shallfix the amount of compensation by evaluatingthe actual loss or damage.

Rule 44 of the Drinking Water Regulation1998 (2055 BS) also provides for the formationof a Compensation Fixation Committee andsets out the procedure for assessment of theamount of compensation as follows:� The Compensation Fixation Committee

shall consist of the Chairman being theChief District Officer and memberrepresentatives of the District DrinkingWater Office and District IrrigationOffice.

� The Compensation Fixation Committeeshall fix the amount of compensation by

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evaluating the actual loss or damagecaused to the land or house owner.

� The compensation amount fixed byCompensation Fixation Committee shallbe acceptable to both parties.

� The licensee shall have to provide theamount of the compensation fixed by theCommittee within 30 days form the dateof fixation.

Rule 88 of the Electricity Regulation 1993(2050 BS) also establishes a CompensationFixation Committee to fix compensation incases of acquisition of land, house andequipment of a hydropower generation plantof less than 1000 kilowatts by HMG.Nationalisation of land, house and equipmentof a hydropower generation plant of more

than 1000 kilowatts is prohibited by Act.137

The Committee comprises a chairmandesignated by HMG, and members includinga concerned person or representative of thelicensee and an electricity expert as designatedby HMG.

If HMG or a licensee acquires or prohibits touse house or land for the generation ofelectricity, Rule 88 provides that the followingmembers are added to the committee: theproperty owner who has sustained loss or hisrepresentative, a representative from theconcerned land revenue office and arepresentative from the VDC or Municipality.The Compensation Fixation Committee shallfix the amount by evaluating the actual lossor damage.

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Chapter Water Pollution88 Water Pollution

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C H A P T E R 8Water Pollution

8.1 Water Pollution ControlLawWater related legislation in Nepal in relationto drinking water, sanitation, irrigation andhydropower all make provision for theprevention and control of water pollution.Many of the provisions relating to waterpollution have been discussed in the precedingChapters however the main provisions aresummarised below.

8.1.1 Pollution of WaterResourcesThe Water Resource Act 1992 (2049 BS)138

contain provisions for the prevention andcontrol of pollution of water resources. Section19 provides that:

No one shall pollute water resourcesby placing litter, industrial waste,poisons, chemicals or other toxicantsto the effect that it exceeds thepollution tolerance limit.

The “pollution tolerance limit” for waterresources shall be prescribed by HMG, by wayof a public notice published in the NepalGazette.

The prescribed officer (prescribed in the NepalGazette) may examine, or cause to examine,

a water resource in order to determinewhether or not the water resource has beenpolluted and if pollution tolerance limit hasexceeded.139

Section 20 of the Water Resource Act 1992(2049 BS) further provides that, in utilizingwater resources, the user must ensure thatthere is no substantial adverse effect on theenvironment such as soil erosion, flood,landslide or other effect.

Section 22 of the Water Resource Act 1992(2049 BS) provides that any person orcorporation who pollutes water resources willincur a fine of up to NRs.5000 and must paycompensation to any person sustaining a lossas a result of the pollution.

The Water Resource Regulation 1993 requiresan Environment Impact Assessment (EIA) to besubmitted with the application for a licence forthe utilization and survey of water resources.140

The Local Self Governance Act 1999 (2055 BS)establishes environment protection and waterresource conservation (including thepreservation of water sources) as an importantduty of Local bodies (see Chapter 3.3 for

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details).141 In particular it allows local bodiesto impose a fine of up to NRs.15 000 for thedumping of solid waste in a water body (otherthan in a designated place) plus expensesincurred in removing the waste.142

8.1.2 Pollution of Drinking WaterThe Nepal Water Supply Corporation Act 1989(2046 BS) and the Drinking Water Regulation1998 (2055 BS) contain provisions for theprevention and control of pollution of drinkingwater. Section 18 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) prohibits thepollution of drinking water. Section 19 of theAct provides a penalty of up to NRs.10 000for violation of Section 18.

Section 5 of the Nepal Water SupplyCorporation Act 1989 (2046 BS) also createsa duty in the Nepal Water Supply Corporationto control the pollution of drinking water.

Rule 26 and 27 of Drinking Water Regulation1998 (2055 BS) also prohibits a drinking watersupplier from doing any work or constructingany structure which will pollute the source ofthe water resource or have a substantialadverse impact on the environment. Similarly,

Rule 25 of the Regulation imposes a duty ona water supplier to maintain a determinedquality of water supplied.

8.1.3 Pollution of Water by SolidWasteThe Solid Waste (Management and ResourceMobilization) Act 1987 (2044 BS) containsprovisions which control the adverse impact on

the environment caused by solid wastepollution. The Act establishes the SWMRMCas the body responsible for the collection,transportation and disposal of municipal solidwaste in safe and environmental friendlymanner (See Chapter 4.3 for details). Inaddition, the Local Self Governance Act 1999(2055 BS) and Regulation 1999 (2056 BS)gives the local municipality full responsibilityfor the management and handling of the solidwaste in the municipality.143

The Solid Waste Management and ResourceMobilization Act 1987 provide that theSWMRMC may:144

In case of the air, soil or waterpollution resulting from solid wastesaffects, or is likely to adversely affect,human beings, birds, animals, plantsand other living creatures in any areaor public place or any inhabited area,the Centre may make necessaryarrangements for the eradication ofsuch pollution.

The Solid Waste (Management and ResourceMobilization) Act 1987 (2044 BS) also prohibitthe following activities:145

1. Throwing, leaving or dumping gas orliquid of any kind in other than pots,containers or places prescribed for thesolid waste.

2. Allowing the spill over from the septictanks to escape carelessly.

3. Throwing, leaving or releasing carelesslywaste from an industrial establishment inany street or public place.

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In addition, the SWMRMC may issue ordersprohibiting the disposal of solid wasteincluding keeping, throwing, burning, buryingor otherwise storing, disposing of, ordestroying harmful solid waste in any publicor any private place considering the welfareand convenience of the public.146

8.1.4 Pollution by IrrigationRule 39(1) (d) of the Irrigation Regulation2000 (2056 BS) relates to the protection of anirrigation structure and prohibits all peopleincluding irrigation service users from thepollution of water resources in the irrigationstructure.

8.1.5 Pollution by HydropowerThe Electricity Act 1992 (2049 BS) prohibitsany substantial adverse effect on theenvironment by way of soil erosion, flood,landslide or air pollution etc while generating,transmitting or distributing electricity.147

Similarly, the Electricity Regulation 1992requires an Environmental Impact Assessment(EIA) to be lodge with the application for alicence for use of water resource forhydropower.

8.2 Industrial PollutionPollution generally, including industrialpollution is managed by the EnvironmentProtection Act 1996 (2053 BS), theEnvironment Protection Regulation 1997(2054 BS) and the Industrial Enterprises Act1992 (2049 BS). The Environmental ProtectionAct and Regulation are the umbrella legislationfor all kinds of pollution.

8.2.1 Prohibition on IndustrialPollutionRule 15 of the Environment ProtectionRegulation 1997 (2054 BS) prohibits industrialpollution as follows:148

No person shall emit, or cause the emissionof noise, heat, radio-active material and wastefrom any mechanical means, industrialestablishment or any other place incontravention of the prescribed standards setby the Ministry by notice published in theNepal Gazette.

8.2.2 Pollution Control CertificateTo control industrial pollution, the EnvironmentProtection Regulation 1997(2054 BS) requirescertain industries to obtain a Pollution ControlCertificate.149

There are two types of Pollution ControlCertificates:1. Provisional2. Permanent

1. Provisional: Rule 16(1) of the EnvironmentProtection Regulation 1997 (2054 BS) providesthat:� All industries listed in Schedule 7 which

are currently in operation are required toapply to the Ministry of Environment andPopulation within 90 days of the date ofcommencement of this rule, or in the caseof such industries which are not currentlyin operation, within 60 days from thedate of production, for a ProvisionalPollution Control Certificate.

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� The Ministry of Environment andPopulation will assess the application andduring its investigations, will consult withthe Village Development Committee orMunicipality where the industry is tobe operated.

� If it is found that the operation of theindustry shall cause no substantialadverse impact on the environment, or ifthere is a possibility of reducing orcontrolling such adverse impact, theMinistry of Environment and Populationshall issue a Provisional Pollution ControlCertificate, valid for one year, within 90days of receipt of the application.

However, if the industry has already consultedwith the Village Development Committee orMunicipality in the course of the preparationof the Environmental Impact Assessment orInitial Environment Examination, theconcerned body shall not be require consultwith the Village Development Committee orMunicipality again.150

The Provisional Pollution Control Certificateshall be renewed every year.

2. Permanent: Rule 16(3) of the EnvironmentProtection Regulation 1997 provides that aPermanent Pollution Control Certificate isrequired in cases where the standards ofsound, heat, nuclear radiation and wastedisposal for any industry have beendetermined by notice published in the NepalGazette. Industries, to which the standardapplies, having been examined by thedesignated laboratory, within 6 months from

the date of determination of such standards,must obtain a Permanent Pollution ControlCertificate which is valid for three years.

Conditions of CertificateRule 16(4) provides that while issuing theProvisional or Permanent Pollution ControlCertificate, the Ministry of Environment andPopulation may, as required, prescribe all orany of the following conditions to be compliedby such industries:� to install within the stated time the

equipment required to reduce or controlpollution

� to use appropriately the installed pollutioncontrol equipment

� to operate the industries at the statedtime only

� to take specific measures to control anyactivities of any industry which generatepollution carried out on the premises

� to take specific measures to control theactivities of any industry which generatepollution outside the premises ofthe industry

� to make available the equipmentnecessary for monitoring activities at thetimes fixed

� other necessary condition as per thenature of the industries

The permanent pollution control certificateshall be renewed every three years.

8.2.3 Permission to Establish anIndustryThe Industrial Enterprise Act 1992 (2049 BS)requires that certain industries listed in

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Annex 2, which may cause a significantadverse impact on the security, public healthand environment, are required to obtainpermission for their establishment, extensionand diversification. Following is the list of suchindustries:151

Cigarette, modern leather tanning,beer and alcohol, sugar production,pulp and paper, cement, textile,washing and dyeing, bitumen,chemicals, fertilizer, pesticides,lubricating oil, producing foam, carpetwashing, soap, electroplating, photoprocessing, tyre, tubes, LP gas,petroleum related mineral based largeindustries, stone crossings, forestbased medium and large industries,paints and bricks industries.

Section 15 of the Industrial Enterprise Act1992 (2049 BS) provides that a reduction ofup to 50 % of taxable income will be grantedto an industrial enterprise that invests in aprocessor or equipment, which has theobjective of controlling pollution or which mayminimize the effect on the environment.152

8.4 Environmental Pollution

8.4.1 Prohibition on EnvironmentalPollutionEnvironmental pollution is mainly governed bythe Environment Protection Act 1996 (2054BS) and the Environment Protection Regulation

1997 (2054 BS). Section 7(1) of the Actprohibits environmental pollution as follows:153

Nobody shall create pollution in amanner that has a significant adverseimpact on the environment, or islikely to be hazardous to life andhealth of people, or dispose of, orcause to be disposed, sound, heat,radioactive rays and waste from anymechanical device, industrialenterprises, or other place contrary tothe prescribed standards.

Section 7 further provides that:� If it appears that anyone has carried out

any act contrary to sub-section (1) andresulting in significant adverse impact tothe environment, the concerned agencymay prescribed necessary terms in regardthereto or may prohibit the carrying outof such an act.

� If it appears that the use of any substance,fuel, tool or device has caused, or is likelyto cause, significant adverse impact on theenvironment, the Ministry of Populationand Environment may, by a notification inthe Nepal Gazette, forbid the use of suchsubstance, fuel, tool or device.

The Local Self Governance Act 1999 (2055 BS)also establishes environment protection as aduty of local bodies, in particular it is the dutyof the VDC and Municipality to develop andimplement various programs on environmental

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protection154 and the role of the DDC toprotect and promote the environment155 .

8.4.2 Initial EnvironmentExamination and EnvironmentalImpact AssessmentSection 3 of the Environmental Protection Act1993 (2053 BS) provides that a proponent (aperson or body who wish to carryout EIA orIEE) must conduct an Initial EnvironmentalExamination (IEE) and an Environmental ImpactAssessment (EIA) of a proposed developmentproject. The IEE and EIA are required for manypurposes including obtaining a licence to use

most water resources. They provide animportant mechanism for the prevention andcontrol of pollution.

The Environment Protection Regulation 1997(2054 BS) lists the types of developmentprojects that requires an Initial EnvironmentalExamination and an EnvironmentalImpact Assessment in Schedules 1 and 2respectively.156 The table below shows asummary of water related developmentprojects and whether an IEE or EIA mustbe conducted.

Use of Water Resources Sector

Electricity Generation

New Irrigation System

� Terai

� mountain and hill area

� hill valley

Restoration of Irrigation System

� Terai

� mountain and hill area

� hill valley

Flood Control by Constructing

Dam in the Terai

River Control

Water Resource Development

which Displaces People

Permanent Residents)

Construction of Multiple Purpose

Reservoir

IEE Required

1-5 megawatts

25-2000 hectares

10-200 hectares

15-500 hectares

over 500 hectares

over 100 hectare

over 200 hectare

Required

More than 1 kilometre

Up to 100 people

displaced

EIA Required

over 5 megawatts

over 2000 hectares

over 200 hectares

over 500 hectares

More than 100 people displaced

Required

Table 2 Water Related Projects Requiring IEE and/or EIA as Per Schedule 1 and 2 E Environment Protection Regulation 1997

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Channelling Water from

one Watershed to Another

Drinking Water Sector

Drinking Water Supply

Rain Water Collection and Use of

Spewing Wetland

Supply of Water in Dry Season from

Surface Water Source

Ground Water Recharge

Water Supply Project which

Displace People

Construction of Tunnel for

Channelling Drinking Water

Settlement of People Upstream of

Water Source

Pumping and Processing Water to

use for Electricity

Connection of New Source to

Supply Water

Water Treatment

Over Mining of Ground Water

Solid Waste Management

Land Filling of Municipal Garbage

Works Relating to Resource

Recovery and Transfer Station

Selection, Segregation, Disposal,

Reuse through Chemical,

Mechanical and Biological Process

Sanitation

Harmful Waste

Population 2000-20000

Up to 200 hector

Up to 1 cubic feet

50% of total aquifer

Up to 100 people

displaced

Up to 1 km

Settlement of up to 500

people

Connection of electricity

more than 20 Kilovolts

and use more than 1

Megawatt

Population 10,000-

100,000

10-25 litre per second

Population 2000-10,000

100-1000 ton annually

Extended in up to 3

hector

Extended in up to 2

hectors

Required

Required

Population above 20000

More than 200 hectors

More than 1 cubic feet

More than 50% of total aquifer

More than 100 people displaced

More than 1 km

Settlement of more than 500

people

Population more than 100, 000

More than 25 litre per second

Required

Population above10,000

More than 1000 ton annually

Extended in more than 3 hectors

Extended in more than 2 hectors

Required

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References

Policies and StrategiesHMGN, Ministry of Physical Planning and Works, Irrigation Policy 2004 (2060 BS)HMGN, Ministry of Physical Planning and Works, National Water Supply Sector Policy 1998

(2055 BS)HMGN, Ministry of Physical Planning and Works, Rural Water Supply and Sanitation National

Policy 2004 (2060 BS)HMGN, Ministry of Physical Planning and Works, Rural Water Supply and Sanitation Sectoral

Strategic Action Plan 2004 (2060 BS)HMGN, Ministry of Physical Planning and Works, Rural Water Supply and Sanitation Strategy

2004 (2060 BS)HMGN, Ministry of Water Resources, Hydropower Development Policy 2001 (2058 BS)HMGN, Water and Energy Commission, Water Resource Strategy 2002 (2059 BS)

LawsDrinking Water Regulation 1998 (2055 BS)Electricity Act 1992 (2049 BS)Electricity Regulation 1993 (2050 BS)Environment Protection Act 1996 (2053 BS)Environment Protection Regulation 1997 (2054 BS)Essential Commodity Protection Act, 1955 (2012 BS)Industrial Enterprises Act 1992 (2049 BS)Irrigation Regulation 2000 (2056 BS)Land Acquisition Act 1977 (2034 BS)Local Self Governance Act 1999 (2055 BS)Local Self Governance Regulation 1999 (2056 BS)Muluki Ain 1963 (2020 BS)Nepal Water Supply Corporation Act 1989 (2046 BS)Solid Waste Management and Resource Mobilization Centre Act 1987 (2044 BS)Solid Waste Management and Resource Mobilization Regulation 1989 (2046 BS)The Constitution of the Kingdom of Nepal 1990 (2047 BS)Water Resource Act 1992 (2049 BS)Water Resource Regulation 1993 (2050 BS)

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References

~~~~~~~~Books, Reports and ArticlesAdhikari, B. P., (2001) Role of Civil Society and Local Bodies for Guaranteeing the Benefit

acquiring from Utilization of Natural Resource and Ensuring Sustainable Development inChaudhari R. P. et al (eds.) (2001) Sustainable Development and Local Community, AProceeding of the Interaction Programmes, Pro Public Kathmandu.

Bhattrai, A. M., Regmi Madhu and Adhikari, Basant Prasad (2002), Review of Existing Policies,Acts and Regulation Related to Forest, Irrigation and Local Self Governance in Nepal, ProPublic Kathmandu.

Jacob, A. and Singh, S.N. (1992), Law Relating to Irrigation, N. M. Tripathi Pvt. Ltd, Bombay.Pradhan Rajendra, Franz von Benda-Beckmann, Keebet von Benda-Beckmann (eds.) (2000), Water

Land and Law, FREEDEAL/WAU/EUR, Kathmandu.Singh, C., (1991), Water Right and Principles of Water Resource Management, N.M. Tripathi

Pvt. Ltd, Bombay.Willey, B., Basnyat-Puri, N. and Sah, R. C., (2004), Kathmandu Valley Water Reform Process:

Review of Project Progress (unpublished report), NGO Forum for Urban Water andSanitation, Kathmandu.

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References

Endnotes

1 Art 1, Universal Declaration of Human Rights 19482 Art 3, id3 Art 11, International Covenant on Economic, Social and Cultural Right, 19664 Art 14, Protocol to the Geneva Convention Relating to the Protection of Victims of Non International Armed

Conflict 1977.5 Sec 45, Water Resource Act 1992 (2049 BS)6 Final Approved Version of Water Resource Strategy Nepal, Ministry of Water Resource, p 1.7 National Water Supply Sector Policy 1998 (2055 BS), Point 2.58 See 3.1.B Rural Water Supply and Sanitation National Policy 2004 (2060 BS)9 Surya Dhungel v. Godavari Marble Industries and others, 37 NKP, Golden Jubilee Special Issue, (1995) (2052

BS) p.139.10 Prakash Mani Sharma v. Nepal Water Supply Corporation, Writ No. 2237, 1990 (2047 BS) SC decided in July

2001 (Ashadh 26 2058 BS).11 Sec 3, Essential Commodity Protection Act 1955 (2012 BS)12 Sec 7, id13 Sec 4, id14 Sec 3, id15 Preamble, id16 Public Trust Doctrine and Sec 4(3), Water Resource Act 1992 (2049 BS)17 Rule 30, id18 Sec 4, Water Resource Act 1992 (2049 BS)19 Sec 8, id20 Sec 8 Water Resource Act 1992 (2049 BS)21 Rule 10 and 12, Drinking Water Regulation 1998 (2055BS)22 Rule 12 (2) Water Resource Regulation 1993 (2050)23 Rule 8, id24 Rule10 and 2(g) and 49, Drinking Water Regulation 1998 (2055 BS)25 Rule 8, Water Resource Regulation 1993 (2050 BS)26 Rule 10 and 12 Drinking Water Regulation 1998 (2055 BS)27 Schedule 5, id28 Rule 12, Drinking Water Regulation 1998 (2055 BS)29 Rule 13, id30 Rule 11 and 14, id31 Section 8 (2), Water Resource Act 1992 (2049 BS)32 Rule 15, Drinking Water Regulation, 1998 (2050 BS)33 Rule 21, Water Resource Regulation, 1993 (2050 BS)34 Rule 22, id

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35 Rule 32, id36 Rule 22, Drinking Water Regulation 1998 (2055 BS)37 Rule 23, Water Resource Regulation, 1993 (2050 BS)38 Rule 17, Drinking Water Regulation 1998 (2055 BS)39 Rule 19, id40 Rule 21, id41 Rule 4 Drinking Water Regulation 1998 (2055 BS)42 Rule 5 and 6, Drinking Water Regulation 1998 (2055 BS)43 Rule 7, id44 Rule 8, id45 Rule 37 Drinking Water Regulation 1998 (2055 BS) and Section 18, Nepal Water Supply Corporation

Act, 1998 (2046 BS)46 Mangal is the Nepali word for the point where the household sewerage pipe connects with the main

sewerage system channel.47 Rule 2 (h), Drinking Water Regulation 1998 (2055 BS)48 Rule 31, id49 Rule 25, id50 Rule 46, id51 Rule 34, id52 Rule 35, id53 Sec 24, Nepal Water Supply Corporation Act 1989 (2046 BS)54 Sec 6.5, id55 Sec 17.3, id56 Sec 55 (j), Local Self Governance Act 1999 (2055)57 Sec 68, id58 Sec 58, id59 Sec 70, id60 Sec 88, id61 Sec 93, id62 Sec 94,id63 Sec 96, id64 Sec 101, id65 Sec 145, id66 Sec, 134, id67 Sec 145, id68 Sec 208, id69 Sec 214, id70 Sec 215 & 216, id71 Sec 218, id72 http://.yomari.com/dwss/function/html/73 Point 3.1.B, Rural Water Supply and Sanitation National Policy 200474 Point 2, id75 Final Approved Version of Water Resource Strategy, 2002 (2059 BS) Nepal, Ministry of Water Resources,

Point 1; National Water Supply Sector Policy 1998 (2055 BS), Point 2.5; Rural Water Supply and SanitationNational Policy 2004 (2060 BS), Point 3.5.

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Endnotes

76 Local Self Governance Act 1999 (2055 BS) and Local Self Governance Regulation 1999 (2056 BS) andSolid Waste Management and Resource Mobilization Act 1987 (2044 BS)

77 Nepal Water Supply Corporation Act 1989 (2046 BS)78 Sec 145, Local Self Governance Act 1999 (2055 BS)79 Sec 165, id80 Sec 3, Solid Waste (Management and Resource Mobilization) Act, 1987 (2044 BS)81 Rule 2.7, Solid Waste (Management and Resource Mobilization) Regulation, 1989 (2046 BS)82 http://www.moppw.gov.np/activity/html/83 http://.yomari.com/dwss/function/html/84 Sec 145, Local Self Governance Act 1999 (2055 BS)85 Sec 3.2, Solid Waste Management and Resource Mobilization Act 1987 (2044 BS)86 Sec 28(2) and 96(3) Local Self Governance Act 1999 (2055 BS)87 Sec 28, id88 Muluki Ain 1963 (2020 BS), Chapter on Land Cultivation (Jagga Abad Garneko)89 Alic Jacob & S.N.Singh, Law Relating to Irrigation, N M Tripathi Pvt. Ltd, Bombay, 1972, p. 790 Sec 7, Water Resource Act 1992 (2049 BS)91 No.1, Jagga Abad Garneko, Muluki Ain 1963 (2020 BS)92 No.3, Jagga Abad Garneko, id93 No. 3, Jagga Abad Garneko, id94 Rule 3(1), Irrigation Regulation 2000 (2056 BS)95 Rule 5(2), id96 Rule 18, id97 Rule 18 (2), id98 Rule 19, id99 Rule 22 id100 Rule 23, id101 Rule 24, id102 Rule 11, id103 Rule 31, id104 Rule 43 and 44 id105 Rule 26, id106 Article 12(2)(e), Constitution of the Kingdom of Nepal107 Sec 3, Electricity Act 1993 (2050 BS) and point 6.2 Hydropower Policy 2001 (2058 BS)108 Sec 7, Water Resource Act 1992 (2049 BS)109 Sec 3, Electricity Act 1992 (2049 BS)110 Rule 4, Electricity Regulation 1993 (2050 BS) (The Regulation provides that application for obtaining license

must be submitted to the Electricity Development Centre. The Centre is renamed as Department ofElectricity Development by the decision of HMG in 2056/10/24 (February, 2000). However governmenthas not made any formal amendment in the Regulation.)

111 Sec 4 (3), ibid112 Rule 12, id113 By way of reports either Environmental Impact Assessment of Initial Environmental Examination as specified

in the Environment Protection Act 1996 (2053 BS), see Chapter 8.114 Sec 4, Electricity Act 1992 (2049 BS) and Rule 15, Electricity Regulation 1993 (2050 BS)115 Rule 15, Electricity Regulation 1993 (2050 BS)

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Endnotes

116 Rule 8 and 17, id117 Sec 4, Electricity Act 1992 and Rule 15, Electricity Regulation 1993 (2050 BS)118 Net income refers to net income for income tax purposes.119 Rule 21, id120 Sec 24, Electricity Act 1992 (2049 ) and Rule 25, Electricity Regulation 1993 (2050 BS)121 Sec 27, Electricity Act 1992 (2049 BS)122 Rule 25, Electricity Regulation 1993 (2050 BS)123 Rule 22, Electricity Regulation 1993 (2050 BS)124 Sec 8, Electricity Act 1992 (2049 BS)125 The public trust doctrine is drawn from ancient Justian law and the common law doctrine of res commun

(ie. things common to all are property of none). Chatrapati Singh, Water Right and Principle of WaterResource Management, N.M. Tripathi Pvt. Ltd. Bombay, 1991, p 76.

126 Sec 4, Electricity Act 1992 (2049 BS)127 Sec 9, id128 Sec 21, id129 Sec 10, id130 Sec 23, id131 Sec 33, id132 Sec 220, Local self Government Act 1999 (2055 BS), Rule 211 along with Schedule 26, Local Self

Government Regulation 1999 (2056 BS)133 Article 17(2), the Constitution of the Kingdom of Nepal 1990 (2047 BS)134 Sec 4, Land Acquisition Act 1977 (2034 BS)135 Sec 33, Electricity Act 1992136 Rule 35, Water Resource Regulation 1993 (2050 BS)137 Sec 29, Electricity Act, 1992 (2049 BS)138 Sec 19 and 20, Water Resource Act 1992 (2049 BS)139 Rule 36, Water Resource Regulation 1993 (2050 BS)140 Rule 17(1)(e), id141 Section 28, 95, 189 and 201(a), Local Self Governance Act 1999 (2055 BS)142 Sec 70, id143 Supported by the decision of the Ministry of Local Development in April 1998 (or Nepali Calendar-12

Chaitra 2054 B.S)144 Sec 4.9, Solid Waste (Management and Resource Mobilization) Center Act 1987 (2044 BS)145 Sec 5, id146 Sec 4.3, id147 Sec 24, Electricity Act 1992 (2049 BS)148 Rule 15, Environment Protection Regulation 1997 (2054 BS). Sec 7 (1), Environmental Protection Act1993

(2053 BS) also contain similar provisions149 Rule 16, id150 Rule 16(2), id151 Sec 9, Industrial Enterprises Act, 1992 (2049 BS)152 Sec 15 (k), id153 Sec 7(1), Environment Protection Act 1996 (1996 (2053 BS)154 Sec 28 and 96, Local Self Governance Act 1999 (2055 BS)155 Sec 202 (a), id156 Rule 3, Environment Protection Regulation 1997 (2054 BS)

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Endnotes

WaterAid NepalShanta Bhawan, Lalitpur, NepalPostal: P.O. Box: 20214, Kathmandu, NepalPhone: (977-1)5552764, 5552765, Fax: (977-1)5547420e-Mail: [email protected]

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