Himal Press 
KATHMANDU: The High-level Economic Reforms Commission has put forward comprehensive recommendations to overhaul the regulatory framework governing the extraction of construction materials such as sand and aggregates.
The commission, led by Former Finance Secretary Rameshwore Khanal, submitted its recommendations to Minister for Finance Bishnu Prasad Paudel on Friday.
It has made a series of recommendations to address pressing issues such as environmental degradation, black-market activities, corruption, illegal extraction, and unregulated crusher industries while promoting sustainable practices and economic growth.
The commission has recommended putting in place a standalone law to regulate the construction material sector, which is currently governed by fragmented standards. It has called for clear policy measures to ensure that extraction activities contribute not only to domestic infrastructure projects but also to exports, thereby boosting Nepal’s GDP and supporting private-sector growth in other countries. It has also proposed preparing specific regulations for extraction in ecologically sensitive areas like protected areas.
To align with environmental protection goals, the commission has recommended revising the Environmental Protection Act and its regulations based on practical experience and stakeholder feedback. Likewise, it has called for impact studies to guide extraction policies, ensuring they reflect environmental, engineering, economic and social considerations.
The commission has also recommended that the government strengthen monitoring mechanisms by establishing automated monitoring systems for extracted and transported materials using barcodes or similar technologies. Additionally, it has called for aligning these reforms with the Local Government Operation Act to ensure consistency and clarity in implementation.
To address environmental damage caused by extraction, particularly to river structures, the commission has proposed compensating affected areas through revenue collected from the extraction of construction materials.
Likewise, to control illegal extraction, the commission has recommended making public infrastructure projects source materials only from legally extracted supplies. To ensure strict enforcement of this provision, it has suggested penalizing project heads and subcontractors who do not comply with this arrangement.
The commission has also proposed creating a national-level regulatory authority to oversee construction material extraction.
