The federal government has included land banks in the Land Use (Third Amendment) Regulations, 2082. The government also has provisions related to land banks in Section 21 of the Land Use Act, 2076. But the land banks were not included in the regulations issued on 23 Jestha 2079. Although there are provisions related to land banks in the Act, they are not in the regulations. But the third amendment to the regulations includes ‘land banks.’

The government has included ‘Land Bank’ in the policy and program and budget for the current fiscal year. It has announced the establishment of land banks at 100 local levels in the budget for the coming fiscal year. On 15 Jestha, the government also stated that it would adopt a policy that arable land would not be allowed to remain fallow through the budget for the fiscal year 2082/83.

The policy and program for the coming fiscal year states that financial and other materials will be arranged through local financial institutions by securing the project itself as collateral, while ensuring the availability of land through the land bank. ‘Legal and institutional arrangements will be made regarding land banks to utilize agricultural land,’ the budget statement says, ‘Land banks will be established in at least 100 municipalities in the coming fiscal year.’

The budget statement states that arrangements will be made for landowners to enter into a contractual agreement with the municipality if they want to lease land. ‘Arrangements will be made for land recorded in the land bank to be acquired for commercial agriculture by entering into a contractual agreement with the municipality,’ the budget states. However, the new concept of the land bank included by the government has not even been developed. During the tenure of former Land Minister Padma Aryal, the government tried to advance the land bank. The concept of ‘Land Bank’ created during Aryal’s time has not been approved.

The government has amended the regulations for the third time and added ‘Chapter-4A’ to the regulations. Chapter-4 covers the establishment, operation, and use of land through the bank, among other issues. Section 13A of the regulations states that a land bank may be established at the local level as per the demand of the local level as per subsection (1) of Section 21 of the Act. 

‘The Government of Nepal may establish a land bank at the local level as per the need to implement the provisions related to land use classification and to increase productivity by making maximum use of land,’ says Section 21 of the Land Use Act. Section 23A of the regulations provides for the formation of a land bank operation committee.

The committee includes the mayor of the municipality or the chairperson of the rural municipality or the member coordinator of the designated executive. The committee includes the chief administrative officer of the concerned local level and the member secretary, the branch chief member secretary looking after land-related matters of the concerned municipality. 

Provisions have been made regarding the use of land through land banks in Section 13B of the regulations. It is mentioned that the municipality should issue a notice to landowners who want to use their land through land banks within 35 days to submit an application. The landowner can submit an application within the specified period, specifying the ownership of the land, plot number, area, period for which the land can be used, and the classification if the land is within the area classified as per the Act and Regulations.

It has been provided that after examining the application received in such a way, the landowner should enter into an agreement with the landowner regarding the use of such land, mentioning the return received, and the land should be recorded and listed. 

Earlier, the government had announced to establish a land bank in the fiscal year 2077/78 to bring barren and unused personal land into use across the country. The government had announced this to increase productivity by bringing it into commercial use after the number of personal land remaining barren across the country increased. The policy and program for the fiscal year 2077/78 states that land bank units will be established in 300 municipalities with co-investment from the federal, provincial and local levels. 

Ganesh Prasad Bhatta, spokesperson for the Ministry of Land, said that the concept of a land bank has been introduced to bring barren land into use. ‘You can keep the land that you are not using in the land bank by making an agreement,’ he said. ‘Those who want to use it can also apply and take it by making an agreement.’