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II. MECHANISMS FOR INTEGRATING ENVIRONMENTALCONSIDERATIONS
[ II-A | II-B | II-C | II-D |II-E ]
D. Interfacing with the private sector
Under the existing procedural arrangements with the private sector, a two-track approach is followed. The first track exempts individuals and groups from the requirement of holding permits and licences, while the second one does not. At present, there are four important laws, comprising rules formed which provide the procedural framework and which influence private sector decision-making and, in turn, have implications for environment and natural resources management. The four laws are: (a) the Industrial Enterprises Act, 1992; (b) the Water Resources Act, 1992; (c) the Electricity Act, 1992; and (d) the Forest Act, 1993. Under the first three laws, certain types and/or sizes of enterprises are exempted from such requirements as licences, permits or even providing notice to the government. For example, under the Water Resources Act, 1992, there is no need to seek permission or to notify government authorities regarding the use of water resources by a group or an individual for consumption or household use, irrigation or operating a water mill, although it is stated that an individual or organized group should make gainful use without adversely affecting others. Similarly, under the Electricity Act, 1992, there is no need for any individual or organized Nepalese group to seek permission from, or inform government authorities of the production, transmission or distribution of electricity of up to 100 kW, or to undertake a feasibility study for that purpose. For hydroelectric power generation of over 100 kW up to 1,000 kW, notification to the designated authority is deemed sufficient. The Industrial Enterprises Act, 1992, on the other hand, states that any industries, other than those which are listed in annex 2 of the Act "which may significantly cause adverse effect on security, public health and the environment", shall not be required to obtain permission for their establishment, extension and diversification.
The Forest Act, 1993, is different from the above laws in two respects. Under the Forest Act, while trees may be freely planted on land owned by an individual or a group of individuals, the concerned individual or group must obtain permission from the designated government authorities when wishing to utilize those trees. In the case of establishing private forests, while there is no need to obtain prior permission for planting, permission is necessary prior to harvesting. In fact, the "EIA Guidelines for the Forestry Sector", issued by the Ministry of Forests and Soil Conservation in 1995, make it mandatory to have an EIA report prior to permission being granted for harvesting five hectares or more of forest area, irrespective of ownership. The impact of that rigid requirement, together with the former nationalization of all private forests by the government in 1956/57 and previous experience of managing nationalized forests, has resulted in increasing suspicion among potential investors in the forestry sector. Thus the very purpose of EIA and protection of the fragile ecosystem through private initiative is defeated.
Any entrepreneur wishing to establish an enterprise that has explicit environmental implications must first assure the authorities, prior to receiving permission, that appropriate measures will be taken to mitigate any environmental consequences. Available information indicates that this provision of the law has yet to become fully effective. However, no applicant has yet been refused permission nor have any of the industries currently causing pollution been forced to take mitigatory measures. At present, the authority to issue permission for establishing an industry is divided between the Department of Industry, the Department of Cottage and Small Industries, the Small and Cottage Industries Development Board and the Ministry of Industry, depending on the size of the enterprise in question. Any entrepreneur interested in establishing an enterprise must file an application together with the necessary supporting documentation at the designated department. The department concerned then processes the file. Depending on the nature, size and level of foreign investment, the case may be moved up to the Industrial Promotion Board, an interministerial board chaired the Minister of Industry, for authorization to issue a licence.
The Water Resources Act, 1992, and the Electricity Act, 1992, have similar provisions regarding procedural arrangements.
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