The Federal Affairs Department of the CPN-UML has submitted its reports on the restructuring of the state to the party suggesting "identity and capacity" as the basis for federalism on Tuesday.

The department chief Parashu Meghi Gurung handed over the report to party chairman Jhala Nath Khanal at party headquarters in Balkhu.

“Culture is the basis of identity and prosperity is the basis of the capacity. This is the essence of our report,” said department coordinator Meghi Gurung.

The report has discarded cast and ethnicity as the basis for creating federal units.

The report has suggested around 900 local governments, more than 150 municipal governments, 10 autonomous metropolitan cities, five autonomous regions with eight or 12 federal states.

The report has recommended two alternative models of federal set-up. The first alternative suggests eight federal states- at least three in Terai, and five in the hilly and mountainous regions while the second alternative suggests12 federal states- at least three in Terai and eight in hilly and mountainous regions. nepalnews.com