1. Enabling Policies to Support Forest Farm Producer Organization Businesses
IUCN, Nepal
Presented By, Harihar Thapa FFF Nepal Program Federation Of Nepal Cottage and Small Industries

2. Context
Context
The legislation has assigned enough rights, roles and responsibilities to Local Governments to regulate and facilitate community-based forest; farm and forest-based micro-enterprise and cooperatives at local/community level
The micro-enterprise and cooperatives can be registered at the office of Local Governments
The Local government has responsibilities to formulate policy, plan and program to promote micro-enterprise and cooperatives

3. Contribution of micro small enterprise sector
Micro small enterprise sector contributes to following national economic sector;
90% of the total industrial GDP
80% of the industrial employment
70% 0f the total national export

4. MSME Definition Types of Industry Fixed Assets/Turn over
No. of Employees
Micro Industries
Up to Rs. 5 lakh (5 Hundred Thousand) , excluding land and Building
Annual Turnover less than 50 Lakhs(5 Million)
Electricity consumption below 20 Kilowatt
Up to 9, self employed and self managed
Cottage Industries
Based on traditional skill and technology
Labour , specific skill , local raw materials, local technology, art and culture based
Electricity consumptions below 10 kilo watt
Small Industries
Up to 10 crore (One Hundred Million) fixed asset
Medium Industries
More than Rs. 10 Crore (100 million but less than Rs 25 Crore (250 million ) fixed asset
Big Industries
More than 25 Crore (250 Million) fixed asset

5. Opportunities: Industrial Act- 2017
Registration and Establishment
No Registration fee for enterprise registration
Income Tax Free for initial 5 years (from the registration date)
Industries will not be nationalized
Establishment of one door service centre
Provision for specific Economic zone
Provision for Industrial Promotion committee in local level
Provision for industrial village in each rural/urban municipalities
Provision for providing forest land in lease to forest based industries

6. Opportunities: Industrial Act- 2017
Provision for Fund
Micro, Cottage and Small Enterprise Development Fund
Technology Development Fund
Women Entrepreneurship Development Fund
Provision for women Entrepreneurs
Loan for Women Entrepreneurs( without collateral up to Rupees 5,00, )
Provision of loan for exporting the products

7. Opportunities….. Agroforestry Policy (currently in drafting process)
Forest act has included provision to establish enterprise and ecotourism inside community forest

8. Thank you