An elected constituent assembly is planned to frame a new constitution of Nepal. This paper argues for a federal system of governance and reviews various federal proposals that have been made so far, some of which suggest territorial subdivision and some suggest cultural subdivision of the country. This paper argues that a cultural subdivision offers a greater promise of durable peace and stability of federation than a territorial subdivision and would also help improve economic efficiency in delivery of governmental services. Further, it proposes a cultural federation of 15 small size states, with directly elected governors in the states and a proportional system of representation in the state assemblies.
Sharma, Vijaya R.. "Comparative Study of Federation Proposals for Nepal." (2007). http://digitalrepository.unm.edu/nsc_liberal_democracy/20