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Natural resources of Nepal

Natural resources of Nepal
The natural resource plays an important role in economic development of a
country. The prosperity in natural resources and their proper utilization makes a country
rich. Nepal is rich in terms of natural resources. The major natural resources of Nepal are:
water resources, forest resource, mineral resources, soil, etc. These resources are
important for the development of agriculture, industry and trade. But these resources have
not been properly utilized in Nepal.
Major Natural resources of Nepal

I. Water resources:
Nepal is one of the richest country in water resources in the world. It stands in the
second position after Brazil in water resources. But economic development of Nepal
largely depends on the development of water resources. There are more than 6000
rivers in Nepal. The water resources can be utilized in the development of agriculture,
industry and trade.
Importance of water resource in economic development:
Water resource is very important in the overall development of Nepal. Water
resource can be used for electricity generation, irrigation purposes and drinking purposes
as well. It is regarded as the basic source of energy. The importance of water resources
are as follows:
I. Development of Agriculture:
Nepal is an agricultural country. Agriculture is the backbone of Nepalese
economy. The agriculture sector can be developed only with the adequate
provision of irrigation. Irrigation helps in crop diversification, increase in
production and modernize agriculture.

II. Development of transport and communication:
The development of transport and communication are pre-requisites of
economic development. The means of transport like ropeway, cable car,
railway, trolley bus can be developed only with the aid of electricity. It also
helps to develop means of communication like radio, television, computer,
fax, e-mail, internet, etc. These means of communication can be develop with
help of hydroelectricity.

III. Development of Industries:
The development of hydroelectricity is the basis of industrialization. One
of the obstacles of industrialization in Nepal is inadequacy of electricity. The
medium and large scale industries need heavy machinery, which cannot be
operated without electricity. Therefore, water resource helps to accelerate the
pace of industrialization in the country.

IV. Development of Tourism Industry:
Tourism is major sources of foreign currency of Nepal. The water resource
helps in development of tourism industry through the provision of
hydroelectricity. Similarly, rivers, waterfall, natural spring, lakes, etc. add the
natural beauty of the country. It would help to promote tourism industry by
providing the facility of rafting, boating, swimming, fishing, etc.



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V. Preservation of forest resource:
At present, Nepal is facing the problem of deforestation. The development
of hydroelectricity substitutes the use of firewood. Therefore, the development
of electricity helps to preserve forest resource.

VI. Generation of employment opportunities:
Nepal is facing the problem of unemployment and underemployment. The
development of water resources may create direct and indirect employment
opportunities. It is because hydroelectricity has to develop agriculture
industry, trade, tourism, etc. The economic activities increases in the country.

VII. Use of modern amenities:
The development of hydroelectricity facilitates the use of modern
amenities like heater, fan, TV, washing machine, computer, radio and so on.

VIII. Source of foreign currency earning:
There is greater prospect in the generation of hydroelectricity in Nepal. If
we could generate electricity, it would be highly beneficial because we will be
able to earn large amount of foreign currency through its export to
neighbouring countries. Therefore, water resource is supposed to be white
gold of Nepalese economy.

Potential of Hydroelectricity in Nepal:
Hydroelectricity is the main source of energy in Nepal. Nepal is a mountainous
country. Most of the rivers of Nepal flow from high hills and mountains with great speed.
There are more than 6000 rivers in Nepal. Therefore, the hydroelectricity power potential
of the country is great. The theoretical hydro power potential of the country is 83000 MW
out of which 42000 MW is economically feasible. The hydroelectricity potential of the
country has been shown in the following table:
River System Hydroelectricity Potential
1. Gandaki 21000 MW
2. Koshi 22000 MW
3. Karnali 32000 MW
4. Others 8000 MW
Total 83000 MW

Current uses of Water Resources:
Water resources available in Nepal can be used for generating hydroelectricity,
providing irrigation facility and supplying sufficient drinking water to its people. The
present situation and utilization of water resources in Nepal has been presented below:
a) Hydroelectricity:
The main use of water resource in Nepal is hydroelectricity generation.
There is greater potential to generate hydro-electricity in Nepal but by the end of
10
th
plan the total installed capacity of hydro-electricity reached about 600 MW
which is only 0.6% of the total potential. The hydro-electricity has supplied only
1% of the total energy consumption of the country. About 40% of the total
population has access to electricity facility in Nepal.
b) Irrigation facilities:
Irrigation is the second important sector where water resources can be
used for the development of agriculture sector. Various efforts have been made
for the development of irrigation since the 1
st
plan in the country. But about 45%
of the total arable land has got irrigation facility in Nepal.

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c) Drinking Water:
The pure drinking water is the basic need of the people. Nepal is rich in
water resources but the majority of people do not get pure drinking water. By the
end of 10
th
plan about 75% of the population has got drinking water facility in
Nepal.

Problems of Water Resource development in Nepal:
There are various problems for the development of water resource in Nepal which
are as follows:
a. Lack of capital:
The development of water resources requires large amount of capital for
constructing hydro-electricity projects, irrigation projects and drinking water
projects but Nepal is a poor country. Majority of Nepalese people are poor they
have no capacity to save and invest. Thus, there is lack of capital for the
development of water resource in Nepal.

b. Lack of technical manpower:
The development of water resource needs high level technology and
technical manpower but there is lack of such high level technology and
technicians in Nepal. Therefore, Nepal is compelled to import expensive
technicians from abroad to operate the projects of hydroelectricity and irrigation.

c. Lack of Modern Equipments:
The development of water resource needs modern machines tools and
equipments. But there is lack of such equipments in Nepal. We have to import
these equipments from foreign countries but there is lack of capital for this
purpose.

d. Lack of transport facility:
Most of the hydroelectricity projects lie in the hilly region without
transport facilities. The transport facilities will have to be developed before
launching the projects. This increases the project cost significantly.

e. Lack of market:
The domestic market of the country is very limited. The purchasing power
of the people is very low. The only exportable market is India. But the Indian
attitude is not favourable. Thus, lack of market is another problem for the
development of hydroelectricity in Nepal.

f. Defective government policy:
The government policy is defective for the development of water resource
because of political instability. There is defect in formulation and desire of water
resource projects. There is lack of adequate statistical data.
Forest Resource:
Importance of forest resource:
Forest is another important natural resource of Nepal. This resource has an
important contribution in the economic and social development. Forest resource is the
renewable natural resource. Therefore, appropriate scientific management and utilization
of this resource can accelerate the pace of economic development of the country. The
importance of forest resource in economic development are as follows:


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1. Source of energy:
Forest is the main source of energy in Nepal. It provides fuel, wood to
meet the daily necessity of people. About 86% of the total energy consumption is
supplied by the forest resource.

2. Source of raw materials:
It provides raw materials for forest based industries like paper, medicines,
plastics, matches, furniture, etc. Therefore, forest resource is the source of raw
materials required for various industries in Nepal. Similarly, there are about 700
species of medicinal herbs in the forest of Nepal.

3. Source of fodder and animal habitat:
Forest supplies fodder grasses to the cattle. It also provides grazing ground
to the cattle. Thus, it helps in livestock development. Similarly, it is the habitat of
wild animals live tiger, lion, bear, elephant, rhinoceros, rare birds and insects.

4. Control of soil erosion and landslide:
Forest helps to control flood, landslide and soil erosion. The fertility of
land declines in the absence of the control of soil erosion. Therefore, forest is
regarded as the natural insurance against flood, landslide and soil erosion.

5. Source of water:
Forest helps to maintain constant flow of water in rivers, canals and taps.
Forest is the main source of drinking water. Larger the forest area larger is the
rainfall.

6. Tourism development:
Forest enhances the natural beauty. The rare wild animals and birds get
shelter in the forest. It also provide hunting spot. Therefore, forest helps to
develop tourism sector.

7. Source of public revenue:
It is the main source of public revenue in Nepal. The government exports
various herbs and timber to foreign countries to earn foreign currency.

8. Ecological balance:
Forest resource helps in environment protection and ecological balance.
The environmental degradation has serious effects on human beings, animals and
birds, agriculture and industries. According to forest sector expert at least 43% of
the total area should be forest area for ecological balance.

Causes of Deforestation:
At present Nepal is facing the problem of deforestation. There are various causes
of deforestation which are as follows:
I. Source of energy:
The alternative source of energy hasnt been developed in Nepal. Fuel
wood is the main source of energy in rural Nepal. About 75% of the energy
consumption is supplied by wood and fuel wood in Nepal. Due to this reason
deforestation is increasing in Nepal.



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II. Supply of construction materials:
The wood and timber is essential for the construction of house, bridge,
industries and furniture industry. In rural areas, forest area are destroyed to meet
the need of agricultural tools and use as a fodder for cattle this has increase
deforestation.

III. Lack of employment opportunities:
The problem of unemployment and underemployment can be found in
rural areas. Generally, the farmers are unemployed during the winter season.
There are no alternative employment opportunities outside agriculture. Therefore,
rural people illegally sale wood and fuelwood for extra income. This has also
increased deforestation.

IV. Migration:
Deforestation is also caused by internal and international migration.
Migration from hills to Terai and from India is also responsible for deforestation
because they use forest land for settlement and construction of houses. This also
has increase deforestation.

V. Demand for raw materials:
The forest-based industries are increasing in Nepal. Thus, there is increase
in demand for raw-materials for forest based industries like matches, paper,
furniture, etc. As a result deforestation is increasing in Nepal.

VI. High population growth rate:
The population growth rate is high in the country. There is high pressure
of population on agriculture. There is little development of non-agricultural
sector. Therefore, people are compelled to cultivate even in forest land. It also has
increase deforestation.

VII. Uneducated people:
The rural people are mostly uneducated. They are not aware of the future
problem of deforestation like landslide, soil erosion, lack of rainfall, etc. They are
only worried about the present need. So, they carelessly cut the trees. As a result,
deforestation is increase in Nepal.

VIII. Defective government policy:
The government policy regarding preservation and development of forest
is defective because it changes frequently and it is less effective in nature. There
is lack of peoples participation in afforestation and preservation of forest
resource.

Consequences of deforestation:
Among various natural resources forest is the main natural resource. But at
present, Nepal is facing the problem of deforestation. Deforestation influences people
directly or indirectly. It has serious consequences on economic and ecological condition
of the country. The major consequences of deforestation are as follows:

i. Environmental deterioration:
Deforestation brings environmental degradation which has serious effects
on plants and all living beings. It brings ecological imbalance, soil erosion, flood,
drought and landslide. It created desertification in the country.
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ii. Shortage of forest-based products:
Deforestation brings the shortage of supply of raw materials for forest-
based industries. As a result, various forest based industries will be close down.
Deforestation directly affects herbal industry, paper industry, furniture industry,
etc. Therefore, deforestation results in the shortage of forest-based products.

iii. Decrease in livestock rearing:
Livestock is also based on forest resource. Deforestation directly effects
the livestock rearing because there will be lack of food required for livestock due
to deforestation. As a result, there will be decrease in livestock rearing.

iv. Effects on Agriculture:
The deforestation causes soil erosion and soil erosion adversely effects on
agricultural productivity. Due to soil erosion the agriculture manure become
deficient. As a result, the agricultural productivity and production decline.

v. Effects on tourism:
Deforestation destroys the natural beauty and climate of the country.
Similarly, it destroys rare wild animals and birds. As a result, the tourism industry
will be adversely affected.

vi. Brings natural disaster:
The flood, landslide, soil erosion, deficiency of rainfall frequently occur
due to deforestation. This effects the wealth and life of people.

vii. Shortage of construction materials:
Various construction materials in Nepal are based on the timber obtained
from the forest. Due to deforestation people are facing the problem of
construction houses, bridges, factories, etc. Therefore, deforestation results in the
shortage of construction materials.

Mineral resources:
Importance of mineral resources in economic development:
The mineral resource plays an important role in the economic development of a
country. The mineral resource helps in the development of agriculture, industry and trade.
In the absence of mineral resource the country will have to depend on import. The Arab
countries are economically strong due to large quantity of oil reserve. The importance of
mineral resource in economic development are as follows:

a. Development of industries:
Mineral resources have important role in the development of industries in
the country. The heavy machinery and equipments needed for industries are made
from mineral resource. Similarly, energy needed for industries are supplied by
mineral resource such as petrol, diesel, coal, etc. Therefore, mineral resource is
important for industrial development.

b. Source of employment:
At present, Nepal is facing the problem of unemployment due to high
population growth. The existence of mineral resources and their proper utilization
provides employment opportunities to the people. The mineral resource provides
direct as well as indirect employment opportunities.

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c. Source of energy:
The mineral resource is the major source of energy. It provides energy like
coal, petrol, diesel, etc. which are essential for industrial development. The
existence of this energy in the country saves foreign currency.

d. Source of government revenue:
The mineral resource and mineral based industries are the important
source of government revenue. The government can receive royalty from mineral.
Similarly, the government can earn foreign currency from the export of mineral
products.

e. Development of transport sector:
The energy is an important input in the development of transport sector.
The different means of transport like bus, truck, train, aeroplane, etc. need energy
to run.

f. Supply of construction materials:
The construction materials can be supplied cheaply and adequately if there are
mineral resources in the country. This accelerates the pace of economic
development in the country.

g. Increase in national income:
The optimum utilization of available mineral resources within the country
would generate more employment opportunities in all sectors of the economy. It
helps to increase the amount national income of the country.

Current Situation of Mineral Resources in Nepal:
Nepal is a mountainous country. So, there is a greater prospect of developing
mineral resources. The main mineral resources identified in Nepal are as follows:
a. Iron:
Iron is an important mineral resource. Nepal has great prospect of iron
mines. The mine phul choki is regarded as the biggest iron mine of Nepal. The
other mines are Labdi khola, kulakhani, pharping, Godabari, bhaise, etc.

b. Copper:
Nepal has great prospect of copper mines as well. The large cooper mine
has been identified in Bhutkhola. The other copper mines identified are Gyaji,
Baglung, Barabise, Kulekhani, etc.

c. Mica:
The mica is used in electrical works. It is estimated that mica is also found
in large quantity in Nepal. The mica mines have been identified in Bhojpur,
Chainpur, Sundarijal, etc.

d. Limestone:
Limestone is essential for cement products. The high grade limestone has
been found in Godawari, Markhu, Chovar, Bhaise, etc.

e. Slatestone:
Slate mines have been identified in Bandipur, Trisuli, Dolakha, etc.



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f. Coal:
It is estimated that coal mines can be found in the areas such as Sibaling of
Dang, Kathmandu Valley, Kagbeni and Thimika village of Mustang district.

g. Lead and Zinc:
The lead and zinc mines have been identified in Arkhaule, Gallkot,
Ganesh Himal of Rasuwa district, etc.

Problems of Mineral Resource Development:
There are various problems for the development of mineral resources in Nepal
which are as follows:

a. Lack of capital:
The exploration and exploitation of mineral resources need large amount
of capital. But Nepal is a poor country. Therefore, there is lack of capital for the
development of mineral resources. Similarly, Nepal has not been able to receive
foreign assistance for mineral exploration and exploitation.

b. Lack of modern machinery and equipments:
The mineral resource exploration needs expensive machinery and
equipments. These machinery and equipments will have to be imported from
foreign countries. But there is lack of capital for these purposes.

c. Insufficient infrastructures:
The mineral resources of Nepal are largely located in remote hilly areas.
These areas do not have access to transport, communication and electricity
facilities. This is also one of the obstacles for mineral resource development.

d. Lack of technical manpower:
The mineral resource exploration and utilization needs specialized
technical manpower. But there is lack of such manpower in Nepal.

e. Lack of appropriate government policy:
There is lack of appropriate government policy for the development of
mineral resources. The government of Nepal has not been able to adopt
appropriate mineral policy. Similarly, the mineral acts are either vague or
inadequate.

f. Inadequate research:
There is inadequate research in the field of mineral resource in Nepal
because there is lack of experienced human resource modern technology and
equipments.

g. Lack of courageous entrepreneurs:
The development of mineral resources requires lots of industries of
various scales. Establishment of these industries need large amount of capital
investment and courageous entrepreneurs. But there is lack of such entrepreneurs
in Nepal.

Environment and Natural Resource Management:
The combination of various natural elements found in the earth surface is called
environment. In other words, environment is the sum of total of the natural resources. In
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economics various factors like soil, air, water, plants, minerals, living things,
geographical structure, etc. come under environment.
However, this environment has been damaged by the activities of man. The wide
spread environmental degradation has created many problems like air pollution, water
pollution, soil pollution, deforestation, loss of biodiversity, etc. This shows the need of
natural resource management because natural resource plays an important role for
sustainable development.
Causes of environmental pollution:
Environmental pollution is growing in both developed and developing countries.
But it has become more, serious in developing countries like Nepal due to the following
reasons:
a. High population growth rate:
The high population growth rate is one of the major problems of natural resource
management. High population growth directly contributes to environmental
degradation because in order to fulfill the needs of growing population natural
resources are to be utilized.

b. Wide-spread poverty:
The wide-spread poverty leads to the overuse of natural resources because the
poor people use natural resources to fulfill their basic needs.

c. Inadequate public awareness:
Most of the people of Nepal of rural areas are still uneducated. They are ignorant
about the scientific use of available resources. Therefore, they use resources
available to them in their own way which may cause environmental pollution.

d. Use of unnecessary chemicals:
Use of unnecessary chemicals in agriculture is another reason for environmental
pollution. Nepalese farmers dont have adequate knowledge about the scientific
use of harmful chemicals in their farm.

e. Use of traditional skills and technology:
The traditional skill and technology leads to excessive use of natural resources.
Therefore, traditional skills, knowledge and technology should be modified.

f. Lack of natural resource management:
There is lack of natural resource management practice in Nepal. Most of the
people are not aware of the benefits of natural resource management.

Consequences of environmental pollution:
At present, Nepal is facing the problem of environmental pollution. The growing
environmental pollution cause many adverse effects in our environment. The major
consequences of environmental pollution are as follows:

a. Air pollution:
Air pollution is mostly urban areas of Nepal. Air pollution from Vehicles and
industries have resulted air-borne diseases. It adversely affects the working
capacity of people and reduces the average life expectancy as well.

b. Soil pollution:
Soil pollution has been growing rapidly in Nepal due to the unscientific use of
chemical fertilizers in agriculture. It has increased acidity in soil, reduce fertility
of soil and accelerate the process of desertification in the country.
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c. Water pollution:
Water resources are being polluted due to the mix up of industrial wastes and
drainage with drinking water pipes which is responsible for many water-borne
diseases.

d. Noise pollution:
Growing noise pollution from the means of transport in urban areas is one of the
major problems of Nepal. Particularly, noise pollution has adversely affected the
lives of the people of Kathmandu, Pokhara, Birgung and Biratnagar.

e. Atmospheric change:
The unscientific use of natural resources like water, forest and mineral has
resulted many problems in the earth surface. The atmosphere is being polluted
due to the global warming, green house effect, increase in the quantity of carbon
monoxide and decrease of ozone layer in the atmosphere.
f. Natural calamities:
The rapid deforestation has resulted uneven, unnatural irregular and scarcity of
rainfall. As a result, floods, landslides and storms have become very common in
the country like Nepal.

g. Labour Productivity:
Growing environmental pollution directly affect the life of human beings. Weak
and unhealthy human resource cannot produce more goods and services as a result
there will be low production and productivity.