New land bank procedure aims to revive unused plots, but challenges persist

Nepal's federal government has introduced a new land bank system designed to activate dormant private land and vacant plots, channeling them into productive use via local government bodies. This initiative aims to enforce land-use classifications and maximize the utilization of the nation's land resources.

Under this system, local administrative units will establish land banks. They will issue public notices inviting landowners to voluntarily make their unused or underutilized land available. Applicants must provide details regarding ownership, plot identification, land area, and the duration they are willing to lease their property. The government has issued the "Land Bank (Establishment and Operation) Procedure, 2026" to guide these operations, aligning with the Land Use Act, 2019 and related regulations.

While the federal Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has approved and circulated the procedure, local units must still obtain specific approval from the federal ministry to establish their land banks. This involves submitting an executive decision for examination and recommendation. Furthermore, local units are required to set up a dedicated land section with the necessary infrastructure and form a land bank operation committee, typically headed by the local executive and including the chief administrative officer.