Land degradation, soil erosion and forest fires are the major contributors to the rural poverty in Nepal. Heavily degraded forest areas no longer perform their full natural ecosystem roles, such as protection against weather and provision for firewood and non timber products. The degradation of forest directly translates into worsening livelihoods for the communities that depend on forest. In order to cater and support the community forest user groups of Karunabhumi Community Forest, Makwanpur, Padampur Community Forest, Chitwan, Tikauli Buffer Zone Community Forest, Chitwan, Chisapani Community Forest, Nawalparasi and Syaubari Community Forest, Rasuwa four nurseries were established in Chitwan, Nawalparasi, Makwanpur and Rasuwa in early March 2013. Most of the species which are planted are high value commercial species and fodder plants such as Cinnamomum tamala, Bambusa arundinacea, Albizia julibrissin, Albizia procera, Eucalyptus camaldulensis, Leucaena leucocephala, Alnus nepalensis, Drepanostachyum falcatum, Choerospondis axillaris, Cinnamomun glaucescens and Ficus congesta. Also in order to increase the livelihoods amongst the local households a specialised nursery for Patchouli was also established in Chitwan. A little more than 200,000 saplings are being propagated in the four nurseries. In case of the specialised nursery of Patchouli, 50,000 mother plants are ready, 100,000 cuttings are ready for plantation. As a pilot phase for pathchouli cultivation an area of 0.1 ha of the Chisapani Community Forest, Nawalparasi was made ready and was planted with the some of the prepared cuttings of Patchouli.The project aims to produce a total of 700,000 saplings for restoration and plantation for commercial use by the user groups.