That is bullshit from the authority. It is purely discrimination.  Let me ask a question, does any one's face say he or she is a Hindu or Buddhist or Christian or Islam? No it does not. The other thing is if they do not want to give the burial right then they should not let enter anybody with (चिम्सा आँखा ) magnolia  to Pasupati or surrounding areas?
Burial is just a burial and according to the religious epic anything burn by fire is pure as it was. Anything is behold by fire is as pure as gold. 
So how the burial administration will determine who is Hindu or not? Let's say how about a Newa who is Buddhist but brought for burial is he or she has been denied? How about a race that is untouchable?  How about a me, I am Christian but my last name is still RIJAL? Who is going to find out?

Mr. Minendra Rijal , that guy should be fired and he has no right to  discriminate against any race.

I was thinking of a electrical burial in Pasupati. Pasupati does not only belong to Hindu but to Mongolian too, this is the place where Shiva was holding the dead corps and her last part YONI falls down.  Shiva is a Mongol but we Hindu took him as part of our god because we are the smarted people in earth and due to his power and his courage we took him as part of our god but we denying Mongol to buried in the pasupati area ?  We are arrogant and selfish.

Damn, where we going to find a land to buried Christian, they can be part of buril or find a place in their OWN land, why we have to  provide land to Christian or muslim or Buddhist? Every body in Nepal is cremated.  We have no land for harvesting why on earh we have to provide land, that is not the duty of State.  That is thier privet thing to do, find out own way or in Christinity they cremate and can be cremated to resolve the issue of burial field.