Government of Nepal may grant any part of the National Forest in the form of Leasehold Forest for the following purposes:-
(a) To produce raw materials required for the industries based on Forest Products.
(b) To sell and distribute or utilize the Forest Products by promoting its production through afforestation.
(c) To operate the tourism industry in a way that is compatible with the conservation and development of the Forest.
(d) To operate agro-forestry in a way that is compatible with the conservation and development of the Forest.
(e) To operate farm of insects, butterflies and wild lives in a way that is compatible with the conservation and development of the Forest.