RBBL disburses second round of financial grants to promote energy efficiency in industries

Kathmandu, Oct 14: The Rastriya Banijya Bank Limited (RBBL) has completed the second round of financial grant disbursements to industries that have successfully implemented energy efficiency (EE) measures under the Renewable Energy and Energy Efficiency Programme – Green Recovery and Empowerment with Energy in Nepal (REEEP-GREEN) project.

The grant disbursement is made pursuant to the RBBL's commitment to advancing sustainable industrial growth, the RBBL stated in a press release.

The grant handover ceremony was held at RBBL’s central office in Kathmandu and conducted by Mr.Rajib Mangal Joshi, Green Energy Finance Expert for the REEEP-GREEN project at RBBL, in the presence of senior officials from RBBL, the European Union (EU), GIZ Nepal, industrial representatives, and energy experts.

In this second phase, 13 industries were awarded grants totaling over Rs 40 million, following the successful implementation of energy-saving measures identified through detailed energy audits. These interventions are expected to deliver annual savings of more than 1 million 235 thousand 544 kwh of energy, translating to cost reductions exceeding Rs 47 million 758 thousand 16 per year —a significant contribution to Nepal’s climate goals and sustainable economic growth.

The supported industries represent diverse sectors including agro-processing, pharmaceuticals, and dairy. AG Health Industries Pvt. Ltd., which received the largest grant of over Rs 10 million, has implemented two major energy efficiency measures, including the replacement of manual packaging machines. With a total investment exceeding Rs 40 million, the company is expected to save over Rs 10 million annually, demonstrating a strong business case for energy-efficient innovation.

During the event, industrial representatives highlighted the growing importance of energy efficiency in enhancing competitiveness. Sumit Kedia, Managing Director of Sitaram Gokul Milks Kathmandu Pvt Ltd noted that energy costs account for nearly 30–35% of operational expenses, emphasizing that these initiatives “help industries move beyond awareness to tangible action.”

Dr Pankaj Tiwari, Managing Director of Arrow Pharmaceuticals Ltd. described the energy audit process as “enlightening,” offering new insights to optimize energy use while meeting international safety and compliance standards.

Representing the Delegation of the European Union to Nepal, Ranjan Prakash Shrestha commended participating industries for their achievements and encouraged them to sustain their efforts beyond project support. He also reaffirmed the EU’s commitment to Nepal’s energy transition, highlighting continued investments in transmission and distribution infrastructure to strengthen energy access and reliability across the country.

Concluding the ceremony, Devendra Raman Khanal, Chief Executive Officer of RBBL, emphasized that saving energy is as valuable as generating it. He commended the industries for their contribution to this national effort, stating, “We hope to see these industries become champions of change— inspiring others to adopt efficient technologies and make a lasting impact on Nepal’s energy future.”

This grant scheme, implemented under the REEEP-GREEN project, co-funded by the European Union (EU) and the German Government, supports high-impact energy efficiency initiatives by partially covering implementation costs. By bridging financial gaps, it enables industries to adopt efficient technologies, boost productivity, and uphold environmental and labor standards.

The benefits realized from the grant supported measures will serve as a demonstration of concept to develop business cases for loan and blended financing supported interventions in the public and private sector. This will encourage more industries and enterprises to adopt energy efficiency measures and also promote sustainable development in Nepal. (RSS)