SUMMARY
A participatory approach to rehabilitation of degraded forest land was developed, implemented on a small scale (8-ha plot) and evaluated in terms of economic and ecological costs and benefits over a period of 7 years in a high altitude (2200–2500 m amsl.) village of Indian Himalaya. The local community was more concerned for immediate economic benefits from temperate bamboo, the raw material for traditional handicrafts, and medicinal herbs demanded in the market, than the global concern for long term tangible and intangible benefits from trees. Aconitum heterophyllum was the most profitable medicinal species. The local people agreed to include plantation of broad-leaved multipurpose trees in association with bamboo and medicinal species when they were informed of the limitations of their perceptions and of concerns related to rehabilitation. Rehabilitation comprised introduction of temperate bamboo, medicinal herbs and broad-leaved trees, initial improvement in soil fertility through organic manuring, social fencing of the treated area and involvement of the whole village community by giving due consideration to local interests and by enabling participation of local people in project design, implementation and monitoring. Over the 7-yr period, biomass production of bamboo Thamnocalamus spathiflorus (44.3 kg plant-1) was substantially higher than that of the tree species (5.1–11.8 kg plant-1). Land preparation, planting and maintenance accounted for 11.5%, 46.2% and 42.3 respectively, of the total rehabilitation cost. The income to the villagers from rehabilitation increased from Rs 1607 ha-1 in the first year to Rs 2153 in the 7th year (Rs 40 ≅ US $ 1, on average, during the study period). The total discounted (at the rate of 12%) benefits and costs over the 7-yr period amounted to Rs 13070 ha-1 and Rs 11613 ha-1, respectively. It is concluded that introduction of temperate, bamboo and medicinal herbs together with broad-leaved multipurpose trees would be a more effective option for rehabilitation of degraded forest lands in the high altitudes of Himalaya than exclusive tree plantation activity emphasized by the government and donors.