NEPAL AUTOMART

Home / News / Policy & Tax

Policy & Taxnepal1 min read

Cabinet eases tree-felling approvals for major infrastructure work

Nepal’s Cabinet has delegated tree-felling approval for infrastructure projects to the concerned ministry, a change that should cut delays in road, highway and expressway construction. The new rule is expected to help projects move faster, especially where forest clearance has been holding up work.

Published 17 Jul 2026
What it means for Nepal

Nepal’s Cabinet has delegated tree-felling approval for infrastructure projects to the concerned ministry, a change that should cut delays in road, highway and expressway construction. The new rule is expected to help projects move faster, especially where forest clearance has been holding up work.

What is actually on sale here →
Cabinet eases tree-felling approvals for major infrastructure work

Faster clearance for project sites

The government has changed how trees and utility poles are cleared for infrastructure projects. Each case no longer needs to go back to the Cabinet for final endorsement.

Under the new arrangement, the relevant ministry can approve tree or pole removal in national forests inside protected areas once the legal and environmental procedures are completed.

This is important for transport projects that often stall while waiting for forest clearance. In Nepal, tree-felling approval has repeatedly slowed highway widening, new road corridors and expressway construction. Contractors have had to sit on idle machinery until the permission process was completed.

What changes now

According to the Cabinet decision, ministries can also clear additional trees or poles later during project implementation if the need arises, again after following the required legal process.

The change is part of a wider government effort to speed up infrastructure delivery and cut administrative delays. Recent reform plans have already mentioned faster tree-cutting approvals, environmental clearance and other procedures through a more integrated system.

Why vehicle users should care

For vehicle buyers and road users, the main impact will be on how quickly projects move, not on vehicle prices or new model launches. If approvals come through faster, road upgrades, new corridors and expressway work can progress more smoothly.

Better progress on these schemes can improve travel time, freight movement and access to new markets. Nepal has already been dealing with long delays in several priority transport projects, including road expansion and large expressway work, where forest clearance has been one of the main bottlenecks.

Background

The government had already been revising forest clearance rules to simplify tree-cutting procedures, including changes to compensation and replanting requirements. Thursday’s Cabinet move goes a step further by shifting approval authority away from the Cabinet to the concerned ministry.

That should shorten the decision chain for infrastructure developers and cut one major source of hold-ups on road and transport projects.

AN
Ajit Narayan Singh
Editor, Nepal AutoMart

Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.

Related stories

More on Nepal AutoMartNew car pricesNew bike pricesCompare modelsAll news