(1) For the following purposes, the government of Nepal may designate any part of the national forest that has deteriorated in status as a recognized forest and make it available to any organized organization established in accordance with the prevailing law. (a) To produce raw materials required by the industries based on the production of beans (b) To increase the production of forest produce by planting trees, for sale, distribution or use (c) To operate an agroforestry crop or animal farm in order to protect and develop forests (d) To operate a farm or park for insects, butterflies and wild animals so as to protect and develop forests. (e) To conduct tourism business so as to protect and develop the forest. Explanation: For the purpose of this clause, degraded forest means forest with less than twenty percent canopy density (crown coverage).
(2) Notwithstanding anything written in sub-section (1), the Division Forest Office may provide forest areas to groups of such people in the form of confessional forests to conduct income-generating programs for the protection and development of forests by making an action plan for reducing the poverty of the people below the poverty line.