Forest Department The State of Himachal Pradesh, India The Preparatory Study on Himachal Pradesh Forest Ecosystems Management and Livelihoods Improvement Project in India Final Report Volume 2 Part II: Project February 2018 Japan International Cooperation Agency (JICA) NIPPON KOEI CO., LTD. 4R CR(2) 18-011 Forest Department The State of Himachal Pradesh, India The Preparatory Study on Himachal Pradesh Forest Ecosystems Management and Livelihoods Improvement Project in India Final Report Volume 2 Part II: Project February 2018 Japan International Cooperation Agency (JICA) NIPPON KOEI CO., LTD. Preparatory Study on Himachal Pradesh Forest Ecosystems Management and Livelihoods Improvement Project in India Preparatory Study on Himachal Pradesh Forest Ecosystems Management and Livelihoods Improvement Project in India Final Report Volume 2 Table of Contents Executive Summary Data Summary List of Abbreviations Part II: Project CHAPTER 1 PROJECT AREA PRIORITISATION AND PRIORITISED PROJECT AREAS .......... II-1-1 1.1 Project Areas Proposed by HPFD ............................................................................................. II-1-1 1.2 Prioritised Project Areas ........................................................................................................... II-1-2 1.2.1 Project Area Prioritisation Criteria ......................................................................................... II-1-2 CHAPTER 2 PRELIMINARY SITUATIONAL ANALYSIS OF THE POTENTIAL PROJECT AREA ..................................................................................................................... II-2-1 2.1 Forest Administration ............................................................................................................... II-2-1 2.2 Present Conditions of Forest and Forest Area .......................................................................... II-2-2 2.2.1 Forest Cover ........................................................................................................................... II-2-2 2.2.2 Major Ecosystems in the Prioritised Project Area ................................................................. II-2-3 2.3 Forest Management .................................................................................................................. II-2-7 2.3.1 Forest Management System ................................................................................................... II-2-7 2.3.2 Departmental Natural Forest Management, Reforestation, Afforestation .......................... II-2-10 2.3.3 Joint Forest Management ..................................................................................................... II-2-11 2.3.4 Community Forest Management, Forest Rights Act and Timber Distribution to Right Holders ............................................................................................................................................. II-2-14 2.3.5 Grassland / Pasture Management ......................................................................................... II-2-17 2.3.6 Cold Desert /Permanent Snow Area Management ............................................................... II-2-17 2.4 Wildlife and Biodiversity ....................................................................................................... II-2-18 2.4.1 Protected Area ...................................................................................................................... II-2-18 2.4.2 Biodiversity Richness .......................................................................................................... II-2-20 2.4.3 Human-Wildlife Conflict ..................................................................................................... II-2-21 2.4.4 Invasive/Exotic Species ....................................................................................................... II-2-22 2.4.5 Eco-development and Ecotourism ....................................................................................... II-2-23 2.4.6 Ecosystem Services .............................................................................................................. II-2-25 2.5 Forest Products and Markets .................................................................................................. II-2-25 2.5.1 Major Forest Products .......................................................................................................... II-2-25 2.5.2 NTFPs .................................................................................................................................. II-2-26 2.5.2.1 NTFP Procurement in Project Area .................................................................................... II-2-26 Final Report i Preparatory Study on Himachal Pradesh Forest Ecosystems Management and Livelihoods Improvement Project in India 2.5.2.2 Marketing/ Value Chain of NTFPs in the Project Area ...................................................... II-2-30 2.5.3 Forest Based Industries in the Prioritised Project Districts .................................................. II-2-33 2.6 Farm Forestry and Social Forestry ......................................................................................... II-2-33 2.7 Socio Economic Characteristics ............................................................................................. II-2-35 2.7.1 Livelihood ............................................................................................................................ II-2-37 2.7.2 Access to Financial Services ................................................................................................ II-2-49 2.7.3 Forest Uses ........................................................................................................................... II-2-56 2.7.4 Gender and Community Forest Management ...................................................................... II-2-60 2.7.5 SHGs and SHG based Livelihood Interventions .................................................................. II-2-64 2.7.6 Microfinance ........................................................................................................................ II-2-66 CHAPTER 3 PROJECT FRAMEWORK ............................................................................................. II-3-1 3.1 Project Plan Outline of the Prioritised Project .......................................................................... II-3-1 3.2 Major Changes from DPR Made in the Project Framework .................................................... II-3-2 3.3 Project Needs and Rationale ..................................................................................................... II-3-3 3.3.1 Relevance and Linkages with Government Policies and Priorities ....................................... II-3-3 3.3.2 Need to Enhance Forest Quality ............................................................................................ II-3-4 3.3.3 Need to Enhance Biodiversity Conservation ......................................................................... II-3-5 3.4 Project Objectives and Approaches .......................................................................................... II-3-5 3.5 Project Log Frame .................................................................................................................... II-3-8 3.6 Project Components Framework ............................................................................................. II-3-11 3.7 Project Components ................................................................................................................ II-3-12 3.7.1 “Component 1: Sustainable Forest Ecosystem Management” ............................................. II-3-12 3.7.1.1 “Component 1.1: Preparatory Works for Component 1” ................................................... II-3-12 3.7.1.2 “Component 1.2: Participatory Forest Management (PFM) Mode” .................................. II-3-20 3.7.1.3 “Component 1.3: Training for VFDSs” .............................................................................. II-3-27 3.7.1.4 “Component 1.4: Departmental Mode”.............................................................................. II-3-29 3.7.1.5 “Component 1.5: Training of Project related Staff of HPFD” ........................................... II-3-35 3.7.1.6 “Component 1.6: Research” ............................................................................................... II-3-37 3.7.2 “Component 2: Biodiversity Conservation” ........................................................................ II-3-38 3.7.2.1 “Component 2.1: Scientific Biodiversity Management” .................................................... II-3-39 3.7.2.2 “Component 2.2: Training of Project related Staff of HPFD” ........................................... II-3-50 3.7.2.3 “Component 2.3: Research” ............................................................................................... II-3-51 3.7.2.4 “Component 2.4: Community Based Biodiversity Management” ..................................... II-3-52 3.7.2.5 “Component 2.5: Training of DMUs/ FTUs/ BMCs and Sub-committee” ........................ II-3-60 3.7.3 “Component 3: Livelihood Improvement Support” .............................................................. II-3-61 3.7.3.1 “Component 3.1: Community Development” .................................................................... II-3-61 3.7.3.2 “Component 3.2: NTFP based