Nepal - Agricultural sector survey : the general report (Vol. 2 of 2) : Annexes 1 to 8

Repcrit No. 519a-NEP FILE COPY Agyricultural Sector Survey of Nepal: The General Report (In l-wo Volumes) Volume II: Annexes 1-8 Deccmber 20, 1974 South Asia Projects Department Noit for Public Use Doclment of the International Bank for Reconstruction and Development lnteinational Development Association This report was prepared for official use only by the Bank Group. It may not be ptiblished, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS US$1 = Nepalese Rupees (Rs) 10.56 Rs 1 US$0.094 = Indian Rupees (IR) 0.726 Rs 1,000,000 = US$94.340 WEIGHTS AND MEASURES Metric System 1 kilogram (kg) = 2.20 pounds 1 quintal = 100 kg = 220 pounds 1 metric ton (m ton) = 1,000 kg = 2,204.62 pounds = 0.98 long ton 1 meter (m) = 39.37 inches = 3.28 feet = 1.09 yards 1 kilometer (km) = 0.62 mile 1 bigha = 0.68 ha 2 = 1.7 acres 1 hectare (ha) 2 = 10,000 m = 2.47 acres 1 square kilometer (km ) = 100 ha = 0.39 square mile Crop Year: June 1 - May 31 Financial Year: July 16 - July 15 (exact dates vary with lunar calendar) ABBREVIATIONS AND ACRONYMS ADBN Agricultural Development Bank of Nepal ANC = Agricultural Marketing Corporation CEDA = Center for Economic 1)evelopment and Administration, Tribhuvan University DA = Department of Agriculture DF = Department of Forestry DIHM = Department of Irrigation, llydrology and Meteorology DT = Department of Transport FAMSD = Food and Marketing Services Department, MFAI FMS = Farm Management Study HMG = Government of Nepal IAAS = Institute of Agriculture and Animal Science, Tribhuvan University JT = Junior Technicians, DA JTA Junior Technical Assistants, DA M = Million MFAI = Ministry of Food, Agriculture and Irrigation MPP = !finimum Package Program NDC = Nepal Dairy Corporation NESP = National Education System Plan NPC = National Planning Commission NRB = Nepal Ra'stra Bank NRC = Nepal Resettlement Company VC = Village Committees VP = Village Panchayats  NEPAL AGRICULTURAL SECTOR SURVEY Table of Contents Paragraph Number VOLUME I (GENERAL REPORT) SUMMARY ........... i - xxxvi I. INTRODUCTION ................ 1.01 - 1.08 1I. BACKGROUND .................................. 2.01 - 2.26 Natural Resource Base .2.01 - 2.11 Socio-Economic Disparity: The Hills and The Terai .. 2.12 - 2.26 III. PRESENT POSITION .3.01 - 3.70 The Principal Agricultural Products ......... ....... 3.01 - 3.30 The Institutional Setting ....... .................... 3.31 - 3.70 Ill. A PROPOSED DEVELOPMENT STRATEGY ...... .................... 4.01 - 4.106 Government's Emphasis and Plans ..... ................ 4.01 - 4.03 The Basic Strategy ........... ........................ 4.04 - 4.06 Agricultural Development in The Hills .... ........... 4.07 - 4.21 Agricultural Development in The Terai .... ........... 4.22 - 4.42 Linking The Hills to The Terai ...... ................ 4.43 - 4.49 Improving Support Services ...... .................... 4.50 - 4.86 Reaching The Small Farmer ....... .................... 4.87 - 4.97 Programs [or the Development Regions ..... ........... 4.98 - 4.106 V. PROJECTS, PREINVESTMENT REQUIREMENTS AND PROSPECTS ....... 5.01 - 5.23 Project Selection .......... 5.01 - 5.02 Present Foreign Assistance and Projects .......... 5.03 - 5.07 Proposed Projects for External Financing .......... 5.08 - 5.22 Preinvestment Requirements and Studies .......... 5.23 Table 1: Geographic Regions, Climate and Agricultural Location. Table 2: Components for Secondary Roads and Area Development Projects. Appendix: Socio-Economic Characteristics of 'i'he Hills and The Terai.  -2- VOLUME II (ANNEXES) Annex 1 - Natural Resource, Land Use and Land Settlement Annex 2 - Forestry Development Annex 3 - Foodgrain Production Annex 4 - Cash Crop Development Annex 5 - Livestock and Fodder Development Annex 6 - Irrigation and Water Resource Development Annex 7 - Credit and Cooperatives Annex 8 - Statistical Annex MAPS 10906 - Nepal - Geographic Regions and Districts (General Report) 10907 - Nepal - Administrative Regions, Zones and Districts ( " " ) 10908 - Nepal - Topography, Large Valleys and River Systems ( " " ) 10742 - Nepal - Crop Concentration and Land Use ( " " ) 11172 - Nepal - Remaining Level Forests in Eastern Terai ( " " ) 10912 - Nepal - Remaining Level Forests in Western Terai ( " " ) 10909 - Nepal - Transportation Infrastructure ( " " ) 11050 - Nepal - Concentration of Government Agri- cultural Services ( " ) 10913 - Nepal - Annual Rainfall (Annex 1) 10741 - Nepal - Geology (Annex 1) 10911 - Nepal - River Basins and Watersheds (Annex 6) 10164 - Nepal - Existing and Proposed Main Irrigation Projects (Annex 6)  ANNEX 1 Page (i) NEPAL AGRICULTURAL SECTOR SURVEY NATURAL RESOURCES, LAND-USE AND LAND SETTLEMENT Paragraph Number A. NATURAL RESOURCES ..................................... 1 - 16 Area and Physical Features .1 - 6 Climatic Regions and Agricultural Location ..... 7 - 8 The People ..... 9 Water and Hydropower Resources ..... 10 - 11 Forest Resources ..... 12 - 13 Soils ..... 14 - 15 The Report's Regional Coverage ..... 16 B. MIGRATION AND LAND-USE ..... 21 - 24 Population Pressure and Migration ..... 17 - 20 Land-Use ..... 21 - 24 C. LAND SETTLEMENT ..... 25 - 54 Introduction ..... 25 - 27 Nepal Settlement Company ..... 28 - 46 Department of Resettlement ..... 47 - 49 Proposed Settlement Plan ..... 50 - 54 D. RECOMMENDATION AND PROSPECTS ..... 55 Land-Use Planning ..... 56 - 65 Improving Settlement Capacity ..... 66 - 70 Spontaneous Settlement and Resettlement Department's Role . ... ............ 71 - 72 Table 1: Geographic Regions, Climate and Agricultural Location Table 2: Nepal - Terai and Inner Terai Forests, 1972 Table 3: Nepal Resettlement Company - Numbers of Families Resettled and Land Distributed Table 4: Existing Schemes of the Department of Resettlement Table 5: Nepal Resettlement Company - Current Five Year Settlement Program  ANNEX 1 Page (ii) ANNEX 1: Natural Resources, Land-Use and Land Settlement Appendix 1: Climate Appendix.2: Assessment of Soil Investigations Appendix 3: Assessment of Land-Use Statistics in Nepal MAPS: IBRD 10913 - Nepal - Annual Rainfall IBRD 10741 - Nepal - Geology  ANNEX 1 Page 1 NATURAL RESOURCES, LAND-USE AND LAND SETTLEMENT A. Natural Resources Area and Phyical Features 1. The Kingdom of Nepal is rectangular shaped, with an area of some 141,000 km2. Completely landlocked, it is wedged between Tibet to the North, and India to the South. The physical and ecological features play an eminent role in determining the way of life in Nepal. The topo- graphy is the most varied of any nation. Nepal is roughly 850 km (530 miles) long from east to west, and 180 km (110 miles) wide. From the plains and lowlands of the south, about 50 km above sea level, the ter- rain rises in 160 km to the dramatic heights of the world's highest moun- tain, Mount Everest, at 8,850 m. 2. Geographically, the country is divided into three roughly parallel strips, each running generally east and west. The southernmost strip (about 25 km wide) is the Terai, covering about 17% of total area. An extension of the Gangetic plain of North India, it consists of generally flat, open coun- try blending into forested hills, and is noted for its heavy jungles and big game including tigers, rhinoceros, elephants, wild boars and crocodiles. The northernmost strip is about 35 km wide consisting of the great Himalayan Range (4,500 m - 8,850 m) with its perpetually snow-covered panorama. The region is about 35 km wide, and accounts for about 15% of the total land area. The central strip or the Hills is about 100 km wide, with elevations from 250 m - 3,000 m, covering 68% of the land area. 3. The Hills _/ essentially consists of two ranges: (a) The Churia Range; and (b) The Mahabharat Range. 4. The Churia Range consists of narrow steep ridges (The Churia Ridge or the Siwalik Hills) at its southern edge, and large valleys north of it. The Churia Ridge (Map 10908) extends east to west at an average height of 2,510 (760 m) and merges into the Indian border through its extensions at Dang (the Dundwa Range) and at Chitwan (the Someswar Range), conveniently dividing the Terai into three parts (Map 10906): (a) Eastern Terai (East of Chitwan); (b) Mid-Western Terai (between Chitwan and Dang Deokhuri); (c) Far-Western Terai (West of Dang Deokhuri). The Mahabharat Range merges closely into the Churia Range north of Far-Western Terai, Mid-Western Terai and the far-eastern third of Eastern Terai. 1/ See Maps 10906 and 10908, General Report.  ANNEX 1 Page 2 5. The gap between the Churia Ridge and Mahabharat Range is the greatest in the Inner Terai districts where large river valleys (called duns) of the Churia Range are found. 1/ Although the Inner Terai may be considered as part of the hills, its valleys are agriculturally similar to the Terai. 6. The transition from the Mahabharat Range to the great Himalayan Range is not so obvious, but most of the Mahabharat is below 3,300 m (the upper limit for successful grain farming). The Hills can therefore be divided into (a) the Lower Hills (less 3,300 m) and (b) the Upper Hills or Mountains (Upper Mahabharat and Great Himalayas). 2/ Climatic Regions and Agricultural Location 7. Table 1 illustrates the effects of climate 3/ and topography on the distribution of crops in each region. The humid subtropical climatic zone (encomposing mainly the Terai and Inner Terai) reaches approximately 1,700 m, providing the rainforests, foodgrains (mainly rice, and some maize, wheat and millet), oilseeds, pulses, sugarcane, jute, tobacco and tea. Since rainfall decreases from about 2,500 mm in the East to about 1,500 mm in the West, sugarcane, tobacco, jute and tea are more important in Eastern Terai and Inner Terai; pulses, oilseeds and newly introduced cotton are more im- portant in Far-Western Terai. 8. Each hill area is a micro environment with varying conditions for plant growth depending on the elevation, cloud cover the direction of slopes, etc. The microthermal climate of the Lower Hills supports a wide variety of agricultural enterprises (Table 1) - foodgrains, potatoes, fruits and spices, cattle and buffalo. In the Upper Hills, at subalpine elevations (2,700 - 4,000 m) where the winters are more severe and the summers are cool, barley and potato cultivation and the grazing of yak, goats and sheep are the main enterprises. The natural vegetation are mainly temperate conifers. Above the 4,600 m treeline, true alpine tundera conditons of the Himalyan Mountain zone consisting of shrubs and lichens prevail. Lower rainfall in the west gives rise to a higher concentration of subtropical hill pine (Chir) and savanna in the Lower Hills, and the high grasslands of the Upper Hills. 1/ Some of the larger Inner Terai valleys are those associated with the West Rapti and Babai rivers (Dang Deokhuri), Narayani and E. Rapti rivers (Chitwan), Marin Khola (Sindhuli-Makwanpur). Kamla (Sindhuli-Udayapur). 2/ In terms of the availability of statistics, Lower Hills and Mountains are generally presented in an aggregated form in this report. The differences in ecology subsumed in this aggregation should however be borne in mind. 3/ Appendix 1 gives an overview of Nepal's climate.  ANNEX 1 Page 3 The People 9. Besides the differences in climate and agricultural production potentials, there are also important ethnic and cultural differences. The people of the Terai are predominantly of Aryan stock. Those of the midlands or lower Hills are a blend of Mongoloid (Tibeto-Burman) and Aryan stocks, speaking different dialects. The Upper Hills are populated by Tibeto-Burman speaking Mongoloid peoples Kiratis-Rais and Limbus in the East; Sunuwars, Girels and Temangs in the Near East; and Gurungs and Magars in the Central and West. Over the last 150 years, the Upper Hills peoples and the Hill Chetris have traditionally provided the main source of recruits for the Gurkha regiments in the British and Indian armies. Undoubtedly, active service pay and army pensions 1/ have helped keep many hill areas, particularly in the Gandaki zone, solvent. Army returnees also constitute an important pool of semi-skilled labor which has not been fully utilized. Water and Hydropower Resources - 10. The most important untapped potential in Nepal is the river system. With an average annual river runoff estimated at 124 million acre feet (MAF) and a domestic requirement of only 18.6 MAF, the potential for export to India after storage in Nepalese reservoirs is tremendous. The Terai, except for its major rivers 3/, has few reliable surface water sources for year round irrigation. Significant groundwater resources, however could permit such irrigation. Two important artesian groundwater areas have recently been located in the Lumbini and Janakpur zones of the Terai. The Lumbini, with by far the greater potential, is estimated to cover about 200,000 ha between Butwal and Bhairawa, and has artesian pressure of up to 40 ft. 11. Nepal's potential for hydroelectric power is estimated at 83,000 megawatta (MW), equivalent to the combined installed hydroelectric capacity of Canada, the United States and Mexico. A UNDP study 4/ estimated that the Karnali Basin alone could provide a capacity of 6,800 MW. Present installed hydroelectric capacity is only 33 MW and Nepal's per capita consumption of 6 kwh is among the lowest in the World. 51 1/ Estimated remittances were equivalent to US$5.7 million in 1971/72. 2/ A detailed discussions is given in Annex 6, paras 1-22. 3/ For example, Karnali, Sapt Kosi, Narayani, Kankai, Kamla, Bagmati, Rapti, W. Rapti, Babai, Bheri, Mahakali, Seti (See Map 10908). 4/ Nippon Koei, Master Plan For Power Development and Supply, May 1970. 5/ For 1964, world average was 807 kwh and the average for a developing country was 112 kwh.  ANNEX 1 Page 4 Forest Resources 12. The Terai and Inner Terai forests have been the only source of industrial timber. They are semi-tropical hardwood, dominated by Sal (50%) and Asna (15%) strongly demanded in both the Nepalese and Indian markets. Other economic (but much less prevalent) species include Khair for manu- facturing of Katha and Kutch (used as "pan" in chewing), and Semal used in manufacturing matches. 13. Hill forests predominate in the Western region where less population pressure exists. In the subtropical Hill areas and some high forest valleys on the southern side of the Himalayas, the forests are potentially commercial, provided they are made more accessible. However, in the larger Hill valleys and less steep areas, much of the forests have already been lost to settler incursions. The remaining steeper Hill forests consist mainly of indigenous subtropical and temperate pines and oak, used mainly for fuelwood or as loppings for animal fodder or green manure. Soils 2/ 14. Soils in Nepal are generally light and permeable because of the steep river gradients and particularly in the wetter Eastern Terai, generally acid. Two distinct zones may be identified running East-West through the Nepalese Terai: (a) The northwest "Bhabar" Zone - consists of relatively coarse textured soils (usually with less than 20% clay) and often occur as distinctly sandy and gravelly fans at the foothills of the Siwaliks. Very permeable and highly susceptible to erosion, these soils are the least fertile and the most difficult to manage. (b) The southern zone - which is much wider - has largely medium textured soils. These are also quite permeable since the predominant clay mineral is kaolinite. Their cropping suitability varies according to relief, with the lower lands close to rivers possessing a higher water table (or subject to flooding) especially favored for paddy and jute cultivation. The higher and dryer lands are slightly less fertile and are more suited to maize, broadcast paddy, followed by mustard, pulses and wheat. The occurrence of remnant terraces (relict uplands) consisting of coarse textured and compacted soils, typically eroded by small ravines, diminish the cropping potential of this zone. 1/ Forest Resources are detailed in Annex 2, paras 1-11. 2/ An evaluation of soil investigations and more detailed discussions of Nepalese soils are given in Appendix 2.  ANNEX 1 Page 5 15. Most of the soils in the Hill valleys are also relatively coarse textured, particularly those derived from carbonaceous rocks (Map 10741 of this Annex). The hill slopes generally have slightly more clay and silt. The Report's Regional Coverage 16. This report will attempt to analyze the problems of agriculture in relation to the four agricultural regions (Upper Hills, Lower Hills, Inner Terai and Terai) as much as the limited data allows. Because of this limitation, the regions will generally be simplified into (a) the Hills and (b) the Terai. Unless otherwise specified; the Hills includes the mountain region and the Terai includes the Inner Terai. The administrative districts included in each categroy are listed in Map 10907, General Report. B. Migration and Land-Use Population Pressure and Migration 17. Cultivated area in the Hills (comprising 31% of total cultivated area) supports 59% of the population, or an equivalent of nine people per cultivated hectare (compared to the Terai's average of three). This popula- tion pressure has forced people from the Hills to seek alternative and more durable economic opportunities in Kathmandu, the Terai and even outside Nepal (many through enlistments in the Gurkha regiments of the British and Indian armies). Population in the Hills grew by only 1.3% in the decade of the sixties, while that of Kathmandu and the Terai increased annually by 7% and 3.3% respectively. A farm management study (FMS) 1/ of 10,000 farms in 1968/69 showed average farm size to be only 0.5 ha in the Hills, in contrast to 3.0 ha in the Terai, and even these average understate the small farm disparity between the two regions. Eighty-two percent of the farms in Other Hills (hill areas outside Kathmandu Valley) were less than one bigha (0.67 ha), but in the Terai the corresponding figure was 24%. 18. With the eradication of malaria since the mid-fifties, migration into the Terai and particularly the Inner Terai has accelerated and from 1961 to 1971, population pressure in the Hills led an estimated 400,000 mi- grants (about 67,000 families) there. In the last decade, about 180,000 ha of forest land in the Terai was alienated for settlements, of which about 130,000 ha were illegally settled (Appendix 3). 1/ Economic Analysis and Planning Division (EAPD), Ministry of Food and Agriculture, Farm Management Study in Selected Regions in Nepal, 1968-69, Kathmandu, 1971.  ANNEX 1 Page 6 19. Continuing population imbalance in the Hills has increased pressure for bringing more lands into cultivation, either by moving onto much steeper land adjoining farms or by deforestation of nearby steep areas. The result of movement onto such marginal lands has been the primary cause of yield declines in the Hills (particularly in the East). Livestock pressure in the Hills has also aggravated the situation, causing deterioration in the quality and sometimes destruction of hill pastures. Forests have also been denuded because of cutting for fuelwood and lopping for animal fodder or green manure. Consequently, animal productivity, already low, is thought to be declining or at least stagnant, as is the cash income many famers derive from livestock. 20. The combination of (i) fuelwood and fodder extraction in hill forests, and (ii) intensive grazing and improper cultivation on steeper slopes, have increased flooding and crop area destruction in the river valleys and their flood plains in the Terai, threatening to reduce even further Nepal's available cultivated lands. Land-Use 21. The present status of land use is not known with certainty. Information on land use in Nepal is poor, and large discrepanies 1/ occur, depending on the sources of available information used. A reconciliation of available information 2/ gives the following situation (1972); Land Use Million ha (%) Forests 5.0 35.5 Commercial (2.2) (15.6) Non-commercial (2.8) (19.9) Cultivated Area 2.3 16.3 Grasslands 1.7 12.0 Land Under Snow 2.1 14.9 Other 3.0 21.3 Total Area 14.1 100.0 1/ For example, depending on the source, (i) cultivated area ranges from 2 million (Ministry of Agriculture) to 3.2 million hectare (Department of Forests) and (ii) forest areas range from 4.5 to 6.4 million ha. 2/ See Appendix 3 for details.  ANNEX 1 Page 7 22. From Earth Resource Technology Satellite (ERTS) imagery, only 774,000 ha of relatively level commercial forests remain in the Terai and Inner Terai in 1972 (Table 2, and General Report - Maps 11172 and 10912). This represents a total loss of about 340,000 ha since 1963 (equivalent to an annual loss of 3 percent). Population pressure in the hills have led to the settlement of about 180,000 ha of these forests, mainly in the Inner Terai (Dang and Chitwan) and Eastern Terai. Most of the remaining loss was due to firewood extraction and livestock grazing of the less agriculturally suitable forests. Intra-migration within the Terai, and illegal migration from India probably accounted for about 50,000 ha. 23. On the basis of very preliminary pedologic analyses of Terai soils and field verification in the IDA settlement Project areas, a maxi- mum of 325,000 ha of the remaining 774,000 that Terai forests is expected to be suitable for agricultural development. This assessment is primarily based on the probable existence of remnant terrace and Bhabar soils (para 14) in these forests (Maps 11172 and 10912, General Report and Appendix 3, paras 12-14). Probably 200,000 ha of the agriculturally suitable level forests are located in Far Western Terai. 24. This figure of available new agricultural land in the Terai is sub- stantially lower than the 1 M ha presently assumed by the Ministry of Agri- culture and the National Planning Commission. In the Hills, although nearly 300,000 ha of flat land 1/ exist in the larger valleys, indications are 2/ that most of them (except possibly in Far Western Hills) have already been settled. C. Land Settlement Introduction 25. With the increasing migration, a Land Settlement Unit was estab- lished in the Department of Agriculture (Ministry of Food and Agriculture) to control this spontaneous movement, and to legalize reclaimed land and organize land settlement on some of the more favorable areas. 26. The first large scheme was at Hetaura, on the Inner Terai close to the road between Kathmandu and the Indian border. This was followed in the mid-nineteen fifties by the Rapti Valley resettlement scheme (Nawalpur) mainly for families who had lost their lands as a result of landslides during the particularly heavy 1954 monsoon. 1/ Land less than 10% slope (Annex 6, para 13). 2/ This needs to be confirmed by a similar analysis of ERTS imagery under- taken for the Terai.  ANNEX 1 Page 8 27. Tne overwhelming demand for places on these and other, smaller schemes, and the rash of illegal settlement which sprang up in many Terai forest areas in the late nineteen fifties caused HMG to expand its organized settlement activities through the creation of the Nepal Resettlement or Punarvas Company (NRC). This corporation was finally established in 1963 following acceptance of the recommendations contained in an Israeli report, and it was made responsible for larger settlements. The Department of Agriculture, to which the NSC was attached, retained responsibility for all smaller schemes, usually less than 200 families. A Department of Resettlement was established in 1969 (to undertake Jhora Commission disaster relief for landless population in the Hills) to reclaim land for small settlements. Coordination between the two official bodies is largely effected through the Commissioner in charge of the Department who is also the Chairman of NRC board. Nepal Resettlement Company (NRC) 28. NRC is a private limited company, formed in 1963 under the Nepal Companies Act, with authorized share capital of Rs 2 M (US$0.19 M). It is wholly owned by HMG and is run by a board consisting of the Director-General or Commissioner of the Resettlement Department (Chairman), the NRC General Manager (Secretary). The other board members consist of the Director- General of the Department of Agriculture; the Chief Conservator of Forests; and representatives from the Ministries of Industry and Commerce, Water and Power and the Planning Commission. 29. N4RC aims and objectives are to plan and carry out the systematic distribution of land primarily for landless hill farmers in organized and legal settlements, and to assist settlers to improve their farming through provision of advice and credit. 30. History. The first NRC scheme was inagurated in 1965 in a small way at Nawalpur, in the Western Terai (Table 3). This was followed in 1968 Dy a second scheme, at Banke in the same region. Both these schemes are now almost completed with about 2,300 families settled. Tnree other schemes at Bardia, Kanchanpur (Western Terai) and Jhapa (Eastern Terai) has settled a further 2,000 families. 31. During the peak development period of the Nawalpur and Banke schemes in 1966-69, the annual intake of settler families averaged 550, but dropped to around 150 in the two subsequent years. In 1971/72, the second phase of settlement activity commenced with acceptance of 900 families, followed by 1,300 in 1972/73. The NRC achievement of 4,300 families settled in its first eight years, is equivalent to about 8% of the total number of migrant families believed to have moved into the Terai during that period. The remaining 88X comprise illegal occupiers of forest land scattered over much of the plain, but concentrated especially in the few remaining forest areas of the central and eastern Terai.  ANNEX 1 Page 9 32. Settlement Procedures and Assistance. NRC schemes are designed for rural families who are victims of natural calamaties, or those orginating from the overcrowded and land-hungry hill regions, who possess no land or have insufficient land to obtain an adequate living. 33. Prospective settlers must first apply to the chief district officer in their home districts. Details on their completed application forms are checked by the village panchayats (local councils) in their villages of residence and, if found satisfactory, are forwarded to the office of the zonal commissioner. Following approval at this level, the applications are sent on to NRC which makes a final selection and allocates the chosen families to particular schemes. 34. The basic criteria used for selection include farming experience (usually gained as a farm laborer or unregistered tenant farmer). Applicants must be married, and young families are favored. A positive attitude towards farm work is especially sought, and good health is most important. Selection procedures attempt to avoid those with hidden wealth or who are not hard-working. 35. About 90X of the settlers in present NRC schemes are from the Hills and the rest consist of Nepalese refugees from neighbouring countries (especially Burma). 36. Upon selection, the settler must sign a 12-year bond agreeing to abide by the regulations set by the NRC, and he is given a temporary occupa- tion license to his plots. Settlers are expected to purchase their land at the rate of Rs 300 per bigha (Rs 900 per 2 ha farm). This would be paid, interest free, at the rate of Rs 150 per annum between years 6 and 12, following which a permanent freehold title would be given. 37. Land designated for settlement are supposed to be logged by timber contractors of the Department of Forestry who have bidded for the area for commercial extraction. The land is then handed to NRC for distribution to smallholder. 38. Four bigha (2.7 ha) of land used to be provided for each family in the early years, but the allocation was later reduced to three bigha (2.0 ha) when experience showed that the larger area was generally too much for the average family to manage and the smaller area was sufficient to meet the employment needs of the average family while providing an adequate living. 39. Settlers are generally expected to take about five years to fully develop their land. They arrive with their families during October/December, when weather is cool and land is dry, and they start clearing their 0.8 ha (1 bigha) house lots and building their houses. A small semi-permanent dwelling is normally built within the first three months, using residual timber from the cleared plot. A more substantial, permanent two-story house is built within eighteen months of arrival.  ANNEX 1 Page 10 40. Except for a few vegetables, no substantial area is planted during the first six to eight months (October/December-May) which coincides with the second, and drier, part of the traditional crop year (June-May 31). The remainder of each house lot is usually cleared in time for staple food cultivation in the following June. The World Food Program usually provides food to the settlers during their first nine months of settlement. During the dry season of the second year, the settler begins to clear his two bigha (1.36 ha) main farming area, which may not be adjoining his house lot. 41. NRC settlements are usually provided with government services for health, education, water supply (drinking wells). Settlers generally have to construct their own schools and community halls. More intensive agricultural extension service is provided with one JTA to about 100 farmers and cooperatives are assisted by the Agricultural Development Bank which also provides credit to farmers. 42. Problems and Constraints. The main problems facing NSC are: (a) constraints in the choice of scheme sites; (b) overlap of commercial timber operations with forest clearing and cultivation activities; and (c) limited implementation capacity. 43. No mechanism exists for a systematic allocation of land for settle- ment. Selection of sites for NRC schemes has been determined largely by the Forest Department and, in the case of the most recent schemes, has been limited to a 3 km zone along the Indian border, declared a high priority area for settlement largely for security reasons. In effect, NRC has had very limited choice in terms of agriculturally suitable sites for settlement. 44. Poor coordination between DF and NRC has resulted in delays of both timber exploitation and settlement. In some instances, settlers moved into their allocated lands almost immediately, afraid of losing their allocation and thus preventing orderly extraction of the forests. The settlers them- selves do not gain much in the process because their crop yields are much reduced through excession of shade, root competition and pest damage from the forests remaining on the land. In other cases successful bidders using only simple hand tools and ox carts take too long to clear the forests. Others changed their minds about the economic feasibility of exploiting their auctioned plots (after discovering lower quality timber stands than expected) and left settlers with the forest clearing task. In such cases, settlers have taken more than five years to complete clearing their plots for cultivation.  ANNEX 1 Page 11 45. NRC administrative and junior technical staff are appointed through the Public Service Commission while senior technical staff are obtained through short-term secondment from Government departments. Neither of these methods are entirely satisfactory for they lead to delay and often result in inappropriate appointments. The practice of obtaining senior agricultural staff on short-term secondment is particularly harmful for an organization which depends on a high level of specialized agricultural expertise for its success. At present, staff seconded from the Department of Agriculture spend only two years with NRC. During this period they gain an understanding of the special problems of NRC settlers, who lack experience of the Terai environ- ment; but before they can apply their new knowledge, they revert to their parent service. 46. The lack of staff has also meant less in-depth screening of potential settlers and loose adherence to selection criteria, resulting in the rejec- tion of many needy and qualified settlers in favor settlers who later rented out their land. Department of Resettlement 47. The Department of Resettlement (DR), was formed primarily to handle disaster relief and land reclamation for small-scale settlement (less than 200 ha) in 1969. 48. Settlement procedures for potential settlers are similar to that for NSC except that: (a) settler lots are smaller (from 1-2 ha depending on family size); and (b) supporting government services (drinking water, agricultural extension, schools, etc) are not normally provided. Settlers nave to do their own land clearing. 49. All the four schemes under the supervision of DR were established in 1970/71 in the Terai districts of the Lumbini, Kosi, Narayani and Janakpur Zones (Table 4). Nearly 1,000 families have been resettled in 1,641 na. The Proposed Settlement Plan 50. Recognizing the size of the settlement problem, the hardships and illegalities involved, and the inevitability of the trend, which is likely to persist until all agriculturally suitable land in the Terai is fully developed, HMG recently proposed a Five Year Settlement Plan 1/ (1973/74- 1977/78) for Nepal. Two programs are discussed in the Plan: (a) Planned Settlement Program, and (b) Program for Control of Spontaneous Settlement in government lands and forests. 1/ NRC, Summary of the Resettlement and Unplanned Occupation Control Programs.  ANNEX 1 Page 12 51. The main features of the Planned Settlement Program are: (a) Settlement target of approximately 3,000 families annually from 1973/74 to 1977/78 (Table 5); (b) Guidelines on stricter settler selection 1/ and settlement procedures and rules (including revenues, record keeping, size of plots, fragmentation); and (c) Emphasis on agricultural inputs, improving agricultural methods and feasibility studies on irrigation. 52. No guidelines on the selection of new settlement areas were given. 53. The Spontaneous Settlement Control Program proposes guidelines on: (a) areas where settlement will be prohibited 2/ (unstable areas with loose soils, river banks, etc); (b) areas where settlement would be assisted (i.e. those where forests had been settled for 4-5 harvesting seasons and a high school and bazaar has been established); and (c) procedures for legalizing areas where settlement will be assisted. No guidelines were provided for forest areas which will be spontaneously settled. 54. Regional teams will be set up at each administrative zone through the auspices of the Resettlement Department and the Forestry Department, for three years, to undertake "forest preservation and forest-line demarca- tion" as the first step in implementing the spontaneous settler control program. Other members would consist of representatives from the Chief District Officer's Office, the Department of Land Administration, Police, the District Panchayat, and Chairman of Class Organizations (farmers, youth). 1/ Families are eligible for consideration, only if certified by Chief District Officers as victims of natural calamaties or landless farmers (with phographic identification). Screening for settler suitability involves two stages: (i) initially at the zonal commissioner level and at the (ii) NRC (Central Office) level. Initial suitability requires that potential settlers be married, has no serious criminal record, is physically and mentally fit, owns less than 0.5 bigha (0.34 ha) of land. Points are assigned, based on interviews with potential settlers (taking into account age, family size, agricultural aptitute and size of land owned), and selection is to be based on the highest points obtained. 2/ Spontaneous Settlers in these areas would be forcibly removed.  ANNEX 1 Page 13 D. Recoumendations and Prospects 55. Land Use and Land Settlement are closely related. With the in- creasing scarcity of new lands in Nepal, it is of prime importance to ensure l:hat remaining potential agricultural lands are efficiently settled and used. This involves: (a) more systematic land use-planning and policy guidance in land use; and (b) strengthening the institutions to face the problems wrought by land pressure and low incomes. Land-Use Planning 56. We recommend the creation of a Natural Resource and Land-Use Com- uittee or Council (NRLUC) 1/ under the purview of and coordinated by the National Planning Commission to: (a) provide guidelines, objectives and priorities for the survey of existing and potential national land-use; (b) oversee, coordinate and standardize natural resource- use activities, especially the studies and programs of the several agencies reponsible for surveys and censuses of the land and water resource base; (c) assess the need for initiating new studies (surveys) or modifying existing ones, where necessary; and (d) recommend policies consistent with the potential use of the land and water resource, which would involve: (i) the delineation of areas which should be retained as permanent forest, grazing pasture, national parks or wildlife reserves, or alienated for agriculture and other uses, and (ii) the recommendation of loca- tion and phasing of settlement areas and communications. 57. A professionally-staffed technical sub-committee (The Land-Use Technical Sub-committee), consisting of senior representatives of technical departments involved in land-use, is required to support the NRLUC in the 1/ Consisting of senior officials from the Ministries of Agriculture, Forestry, Home and Panchayat, Finance, Water and Power, Mines and Transportation, and chaired by the Deputy Chairman, National Planning Commission.  ANNEX 1 Page 14 land-use aspects of (b) and (c) in para 54. In addition, it should: (i) evaluate the results of past and ongoing surveys and censuses for the pur- pose of developing future land-use maps and regional (and national) land development plans; and (ii) assess the need for foreign assistance to pro- vide the technical support to undertake new surveys or studies. 58. Two types of land-use surveys are required: (i) a Survey of Present Land-Use; and (ii) a Potential Land-Use Survey. 59. A Present Land-Use Survey provides information on the extent and location of area cropped (annual crops, tree crops, horticulture) forests, grasslands, areas with soil erosion problems, pasture, swamps, settled areas, mining, waste land, areas perpetually under snow, etc. The present discrepancies between cropped and forested areas (Appendix 3) can then be resolved. 60. A Potential Land-Use (Land Capability) Survey provides informa- tion on: (i) areas providing various levels of potential for agriculture in terms of the range of crops which could be grown (tree crops, annual crops); (ii) areas potentially suitable for grazing, (iii) areas suitable for commercial forestry; and (iv) areas to be retained as protected forests and parks. 61. An inventory of the soil resources and soil environmental factors is fundamental to these surveys (particularly the Land Capability Survey). 62. Firstly, a reconnaissance soil survey is needed to provide relia- ble information on the type of soils (their occurrence and extent), draining and flooding characteristics, general land capability, and suitability for alternative crop rotations and for sustained year-round irrigation or rain- fed agriculture. Top priority for focusing survey efforts in Nepal should be (in order of importance): (a) the level forest areas in Western Terai (Map 10912, General Report), which would be potentially suitable for future settlement 1/; (b) forested areas in Hill valleys; and (c) larger hill val- leys (mainly cultivated) and areas of production potential (Annex 6, Table 3) which would be linked to main roads. A longer term perspective should be to undertake the Reconnaissance Soil Survey countrywide. 63. Secondly, selected areas proposed for development or specific problems areas which need attention, should be supplemented by more de- tailed soil surveys. It is however important to initially get the broad perspective from reconnaissance soil surveys, so that detailed soil sur- veys would be more efficiently used. 1/ The 1973 IDA Settlement Project has made provisions to undertake such a study.  ANNEX 1 Page 15 64. Two studies to complement soil surveys for land-capability classi- fication are: (i) detailed forest inventory 1/ (to be carried out after soil surveys are completed in order to avoid unnecessary inventory in areas deemed unsuitable for agriculture development); and (ii) water resource inventories (see Annex 6, para 126). 65. Foreign technical assistance is required in the form of a team to assist the Land-Use Technical Sub-committee. Specifically, the require- ment is for a Land-Use planner, a team of surveyors and cartographers and various specialists on short term consultations. The land-use planner should have: (a) extensive experience in conducting and directing integrated resource and land-use surveys involving the coordination of multiple govern- ment organizations; and (b) good basic technical qualification in at least one of the following basic disciplines - soils, land-use, forestry, hydrology. Tne team could undertake analysis of aerial photography, production of suitable base maps for field work, field surveys, technical assistance and in-service strengthening of government department involved in such work. Improving Settlement Capacity 66. Nepal Resettlement Company. Assistance is being given to NRC by the IDA settlement project to expand its program, and assist in alleviating the constraints it faces. 67. The project will finance a reconnaissance soil survey of Far- Western Terai to locate additional areas suitable for land settlement. Tne establishment of the NRLUC to recommend the location and phasing of settle- ment areas and communication should help ease the problem of settlement site selection. 68. The project would also ensure that large scale settlements would be integrated with forest extraction and processing through close coordina- tion between the Timber Corporation of Nepal and NRC. 2/ For smaller areas, an improved timber disposal auction system (Annex 2, para 62) should enable less overlap between timber extraction and settlement activities. 69. In order to iacrease NRC's role in land settlement an improvement in implementation capacity is urgently required. Recruitment of local staff can be improved if NRC is free to hire and fire employees at its discretion, subject only to the control of by its board of directors. A scheme of 1/ To: (a) estimate the total net hoppus cubic feet of sawlogs and total number of poles of all commercial species available within selected areas, and (b) to indicate, by a forest type map, the locations at the principal concentrations of these commercial stands. (For details see Annex 2 of the IDA, Settlement Project Appraisal Report, IDA, Report No. 377-NEP). The general forest inventories undertaken so far (Appendix 3) are not suitable for this purpose. 2/ A Settlement Coordination Committee will be established for the purpose.  ANNEX 1 Page 16 service for agricultural staff comparable with that of the Department of Agriculture needs to be implemented to enable NRC to attract and hold expe- rienced agriculturists. Organizational and training support for NRC's agri- cultural activities will be provided by an agricultural advisor provided by IDA's settlement project. 70. Despite these favorable developments, it is unlikely that NRC can achieve the Settlement Plan's target of settling about 3,000 families annually from 1973/74 to 1977/78. This target will most probably be reached by 1977. Although an improvement over previous performance, such settlement rates in the next five years will represent about 25% of the estimated migration from the Hills to the Terai in the 1960's. A reassessment of the spontaneous set- tlement program and how it can be handled should therefore be made. Spontaneous Settlement and Resettlement Department's Role 71. Some points should be noted concerning the spontaneity of illegal settlement. Although the "pushing force" of population pressure exists in the Hills, there has to be an equally important "pulling force" in the Terai. Settlement in the hot forested Terai is difficult if no assistance is given to migrants to clear the forests, develop some transport facilities, and start their production activities. Despite some pressure of land, families in the Far-Western Hills may not be sufficiently motiviated to settle in the hot Terai unless there is a reasonable chance of owning land and obtaining assistance to develop it. A major reason for mass in-flows of families to ARC offices and forested areas earmarked for land settlement has been the wide publicity that land can be easily obtained from NRC. The publicity sources have been mainly politicians and some friends and relatives who have recently acquired land. If such undue publicity can be minimized and the screening process of potential settlers can be tightened and enforced, valu- able time can be gained to assist organized settlements in Western Terai. 1/ 72. Settlement pressure and timber losses from spontaneous settlement will continue in the Eastern Terai Forests unless action is taken. Past measures for handling spontaneous settlers was either to: (a) repeatedly try to drive them out of the government forests reserves or (b) legalize their settlement where illegal settlement had been established permanently (say over five years) and efforts to move them would be futile. 2/ Both practices are unsatisfactory because the former is just prolonging the ine- vitable at no insignificant costs to the Forestry Department (DF), and the 1/ Accessibility to Western Terai from Central and Eastern Hills will still be relatively difficult as the East-West Highway will not pass through this region until 1978-80. 2/ About 31,000 hectares has so far been legalized in this manner. (Source: Forestry Department.)  ANNEX I Page 17 latter cannot resolve the problem of timber resource wastage as poison-girdled trees are left to rot or are burned. In some areas, however, private indiv- iduals have taken the initiative and assisted the settlers in cutting down the trees, hauled the logs to the nearest river and floated them to India where they are collected and sold. Although resource waste is avoided in such cases, potential revenues to HMG are lost. A scheme should be consid- ered whereby such losses can be averted. It appears to be a losing battle for HMG to use its scarce forestry staff to attempt the protection of all the highly pressured cultivable forest areas in Eastern Terai against settler incursions. Its energies should be channelled into assisting the preparation of intensive organized settlements and particularly in regularizing the process of spontaneous settlement. 73. Attempts should be made by the multi-agency teams (para 54) to iden- tify forest areas which have just been, or are on the verge of being, ille- gally settled. These areas should be marked off, and if they are not re- quired to be conserved (para 53a), attempts should be made to regularize their settlement concentrating in specific sub-areas. "Settler direction" teams could, for example, be formed (consisting of representatives from DP. Reset- tlement Department, Department of Land Administration and the District Pan- chayat) with the assistance of a small survey staff to demarcate lots for settlement. Spontaneous settlers already in the area, or new settlers, as they arrive, would be registered. Each registered head of a household would be assigned a temporary claim to a marked lot and all able-bodied potential settlers would be recruited as hired labor to cut the merchantable trees under the guidance of specially trained DF forest guards or specially hired contrac- tors. Whether the temporary claim could be converted to a Temporary Occupa- tion Licence, would depend on the verification of the landless (or very minute holding) status of the registered settlers, and his performance as hired la- borers in logging. In each area, the number of "settlers" to be registered should not be permitted to exceed the number of plots demarcated. 74. A jeepable track and possible water supply facilities could be built as logging operations commence. When the merchantable timber in the area are cut and properly stacked, the registered households (after suitability veri- fication) could then be permitted to commence settlement. The logs would be auctioned and part of the revenues used to pay for the settlement assistance undertaken. Such "minimum assistance" settlement schemes would be under the jurisdiction of the Resettlement Department, and could then be improved as INHG's settlement capacity improves. 75. The "minimum assistance" settlement approach must be regarded only as a stop-gap measure to protect highly pressured forests. Parallel to this, attempts to identify areas for more organized settlement by NRC along IDA Project lines must continue.  Table 1 - GEOGRAPHIC REGIONS, CLIMATE AND AGRICULTITRAL LOCATION Corresponding Geographiic Administ2tivs Approximate Range of % of Cultivated Main Agricultural Regions Regions Elevations . of Area Area Climate Enterprises Natural Vegetation Himalayas Upper Hills More than 4,600 m Alpine- None Moss, lichens, some (Mountains) ( 15,000 ft) 15 - Tundra duarfed trees. The Hills About 750 m to about 4,000 m 61 32 Micro- consisting (2-3,000 ft) (12-14,000 ft) thermal of: Upper Hills Upper Hills About 2700m to about 4,000 m Temperate- Potatoes, Barley; Temperate pines (fir), (Mountains) (Mountains) (8-10,000 ft)(12-14,000 ft) (2h) N/A Subalpine grazing of yak, junipers, high valley sheep, goats; grasslands. chauris, wool; herbs. Lower Hills Lower Hills About 750 m to about 2,700 m Temperate- Maize, paddy, Subtropical hill (2-3,000 ft) (8 - 10,000 ft) (37) N/A Sub- wheat, millet, pines (chir) and tropical potatoes; spices, temperate pines fruits, vegetables, (fir), oak, bamboo tea; cattle, buffa- loes, goats, ghee (butterfat). Inner Terai Inner Terai 240 m to about 750 m Sub- ) Rice, maize, wheat, Deciduous rain forests, (800 ft) (2-3,000 ft) 7 16 tropical ) millet, oilseeds, subtropical hill pines ) pulses; spices, (chir) and savanna. sugar cane, jute, tobacco, tea. Terai Terai Less than 300 m Sub- ) Deciduous rain forests (1,000 ft) 17 52 tropical ) and savanna /1 See Map_lUY Source: Adapted from L.B. Rajbhandary, Natural Enviromaent and Crop Distribution in Ne1p, Department of Agricultural Edma.tion and Research, Nlristry of Food and Agricultures, Xathbndu, April 1968 and misaion estimtee.  ANINX 1 Page 19 Table 2: NEPAL - TERAI AND INNER TERAI FORESTS L1, 1972 TYPE OF FORESTS Moderately /3 Dissected Badly Flat/3 and Undissected Undisturbed Dissected Flat Forestry Administrarive Partially Heavily Sub- & Partially & Heavily Total "Commercial" Region/Divisions Districts Undisturbed 12 Disturbed Disturbed Total Disturbed Disturbed Forests Forests (1) (2) (3) (4) (5) (6) (7) (8) (8) - (7) ------------------------------------------------- hectares -------------------------------------------------- Far Western Terai Banke Banke 14,919 31,411 3,226 49,556 - - 49,556 49,556 Bardia Bardia, Surkhet 27,298 37,136 8,387 72,821 1,734 - 74,555 74,555 Kailali Kailali 104,920 730 8,060 113,710 - - 113,710 113,710 Kanchanpur Kanchanpur 83,467 11,048 7.056 101.571 - - 101.571 101,571 Sub-total 230,604 80,325 26,729 337,658 1,734 - 339,392 339,392 Western & Inner Terai Butwal-Navalpar Kapilvastu, 25,685 68,668 1,734 96,087 3,548 - 99,635 99,635 Rupandehi, Nawalparisi, Chitwan Chitwan Chitwan 927 20,604 15,161 36,692 - - 36,692 36,692 Deokhuri Dang Deokhuri - - - - 1.290 8,871 10,161 1,290 Sub-total 26,612 89,272 16,895 132,779 4,838 8,871 146,488 137,617 Eastern & Inner Terai Parsa Bara, Parsa 39,190 - 1,690 40,880 - - 40,880 40,880 Rautahat Rautahat 22,016 282 - 22,298 - - 22,298 22,298 Sarlahi Sarlahi 14,596 2,701 - 17,297 - - 17,297 17,297 Mahotari Dhanusha 6,492 - - 6,492 1,169 - 7,661 7,661 Mahotari Saptari Saptari, Siraha, Udayapur - 8,994 - 8,994 86,875 35,572 131,441 95,869 Morang Sunsori, Morang, Jhapa 44.475 14.435 30,282 89,192 23,991 - 113,183 113.183 Sub-total 126,769 26,412 31,972 185,153 112,035 35,572 332,760 297,188 Total 383,985 196,009 75.596 655,590 118,607 44,443 818,640 774.197 1/ Terai portions south of the foothills to the Churia Range (Siwalik Hills) and flat portions of Inner Terai. 2/ Even land of less than 37. slope. 3/ Farests on ravine land and geological remnant terraces. Sour . Based on FAO/UNDP Forest Development Project's analysis of the 1972 Earth Resource Technology Satellite Images, October 1973.  Table 3: N-PAL R SqTrLWM?,WT COMPAVY - IMRRPM nv w4-ATLTP9 PFSE1TTLFD AN'D LAND DTSTRT9IT17D (ha) Year Officially Established 6/66 66/67 67/68 68/69 70/71 71/72 72/73 Total Nawalpur Scheme-/ Families 1963/64 167 599 99 202 60 73 1,200 Land 343 847 713 493 259 193 57 2,905 Banke Scheme-/ Families 1965/66 318 415 67 88 241 1,129 Land 397 645 145 163 340 1,690 Bardia Scheme Families 1970/71 260 335 595 Land 176 556 732 Kanchanpur Scheme Families 1970/71 141 859 1,000 Land 95 580 675 Jhapa Scheme Families 1970/71 272 112 384 Land 184 566 750 Total - Families 167 599 417 617 127 914 1,306 14,308 Land 343 847 1,110 1,138 404 852 1,702 6,752 1/ Origin of families in first six years: Hill Districts 819 Burmah Refugees 281 t 0 Terai District (Approx.) 100 m Total 1 ,2 00 E / Origin of families in first five years: Hill Districts 1,049 F Burmah Refugees 18 India Refugees 22 TotSal Nmt y1 Source: Nepal Settlement Company, October 1973  ANNEX 1 Page* 21 Table 4 : EXISTING SCHEMES OF THE DEPARTMENT OF RESETTLEMNT Year of No. of Area Mlain Location Establish- Families Resettled Agriculture Name of Scheme (District) ment Benefited in Ha Activities RREPI Lumbini Badhera, Paddy, Mustard Zone Dhanewa 1970/71 118 312 Gram, Wheat, (Nlawal- Maize etc. parasi) RRP Kosi Zone Sountha Paddy, Mustard (Morang) 1970/71 503 705 Maize, Wheat, Jute Gram, Oil- seed etc. RRP Narayani Zone Sinduli. Garhi Maize, Mustard Nizgadh 1970/71 150 312 Oilseed, Wheat, (Bara, Gram, Millet etc. Rautahat) RRP Janakpur Murtia Maize, Mustard, Zone (Sarlahi) 1970/71 198 312 Wheat, Oilseed, Gram etc. Total 969 1,641 1/ Regional Resettlement Project. Source: Departnent of Resettlement, October 1973.  ANNEX 1 Page 22 Table 5: NEPAL RESETTLEMENT COMPANY - CURRENT FIVE YEAR SETTLEMENT PROGRAM (families) - - - - Financial Year - - - -Total Scheme 73-74 74-75 75-76 76-77 77-78 Jhapa 800-1/ 400 500 300 - 2,000 Nawalpur-II 300 300 500 600 300 2,000 Bardia 1,300-1 700 700 300 - 3,000 Kailali - 500 600 950 950 3,000 Kanchanpur 1,800 1/ 700 800 950 750 5,000 TOTAL 4,200 2,600 3,100 3,100 2,000 15,000 V These are cwiblative totals which take into account the faMlies settled an these schemes in previous years. A further 2,300 have been settled at the now oompleted Nawalpur I and Banke schemes. Source: Nepal Settlement Company, October, 1973  ANNEX 1 Appendix 1 Page 1 CLIMATE 1. Two seasons prevail in Nepal, the wet season from May to October and the dry season from November to April. About 90 percent (an average of 20 representative stations) of the annual precipitation is concentrated in the wet season. 2. During the winter, from December to February, night temperatures decline to below 5'C sometimes even in the Terai. In the daytime, the sky is clear and the temperature rises to 20'C. Night frosts occur in the hills but rarely in the Terai. From March to April, temperatures rise to 25