The change was greeted with alacrity in the Nepalese queer communities, according to an online article in IBN Live (http://ibnlive.in.com/news/nepals-gays-lesbians-get-citizenship-status/261025-2.html)
It is interesting that in Nepal, being lesbian gay or bisexual, or being transgendered, are treated together; in North America (except for some First Nations) we treat sexual orientation and gender identity as separate concepts.
And it is interesting that Nepalese queers have argued for another category, as opposed to arguing that gender markers should be removed altogether. In pending human rights cases we are arguing that passports (and any other identity document that includes a photo) should have no gender markers.