Over Rs 40m grant goes to 13 industries for energy efficiency

KATHMANDU: Rastriya Banijya Bank (RBB) today distributed over Rs 40 million in grants to 13 second-phase industries, rewarding their implementation of energy-efficiency measures under the Recovery and Empowerment through Sustainable Energy in Nepal (REEEP-Green) project.

The grants follow the successful adoption of energy-saving measures identified during detailed energy ‘audits’. These interventions are expected to save 1,235,544 kilowatt-hours annually and reduce operating costs by more than Rs 47.75 million each year.

Recipient industries span the agro-processing, pharmaceutical and dairy sectors. AG Health Industries received the largest award, Rs 10 million, for two major energy-efficiency improvements, including the replacement of a manual packaging machine. With its own investment exceeding Rs 40 million, the company anticipates annual savings of over Rs 10 million, underscoring the commercial viability of such innovations.

“Energy expenses account for approximately 30 to 35% of our total operating costs, and initiatives like REEEP-Green help industries move from awareness to tangible action,” said Sumit Kedia, Managing Director of Sitaram Gokul Milks, Kathmandu.

Dr Pankaj Tiwari, Managing Director of Arrow Pharmaceuticals, described the audit process as “illuminating, revealing new ways to optimise energy use while adhering to international safety standards.”

Ranjan Prakash Shrestha, Senior Project Manager at the European Union Delegation to Nepal, expressed determination to continue energy-efficiency efforts once the project’s support concludes. 

RBB CEO Devendra Raman Khanal praised the industries for contributing to the national effort and predicted that such cooperation would have a long-term impact on Nepal’s energy future.

Rajib Mangal Joshi, the project’s green energy finance expert, expressed confidence that the initiative would promote sustainable industrial practices, ensure compliance with environmental standards and encourage decent labour practices.

The grant programme, implemented under REEEP-Green with co-financing from the EU and the German Government, provides partial financial assistance for high-impact energy-efficiency initiatives. It was noted that the achievements realised through this support will serve as a model for channelling investment via loan or blended-finance mechanisms in future public and private sector programmes, thereby encouraging more industries to adopt energy-efficient measures and contribute to sustainable development.

(With inputs from RSS)