Rastriya Banijya Bank Distributes Grants to Industries Promoting Energy Efficiency

Rastriya Banijya Bank Limited (RBBL) has awarded grants to industries that successfully implemented energy efficiency measures under the Renewable Energy and Energy Efficiency Programme – Green Recovery and Empowerment with Energy in Nepal (REEEP-GREEN) project.

RBBL said the initiative aligns with the bank’s commitment to promoting sustainable industrial development. In a ceremony held in Kathmandu on Monday, the bank awarded over Rs 40 million in grants to 13 industries selected in the second phase of the program.

The grants were distributed after the successful implementation of energy-saving measures identified through detailed energy audits. These measures are expected to save 1.23 million kilowatt-hours of energy annually and reduce operating costs by over Rs 47.7 million each year, contributing to Nepal’s climate goals and sustainable economic growth.

The beneficiary industries represent various sectors, including agro-processing, pharmaceuticals, and dairy production. A.G. Health Industries Pvt. Ltd. received the largest grant of Rs 10 million for introducing two major energy efficiency improvements, including the replacement of a manual packaging machine. With an additional investment of over Rs 40 million from the company, the measures are projected to save more than Rs 10 million annually—an example of strong business-driven innovation in energy efficiency.

Sumit Kedia, Managing Director of Sitaram Gokul Milks Kathmandu Pvt. Ltd., said energy costs account for about 30–35 percent of total operational expenses, adding that such initiatives help industries shift from awareness to concrete action.

Similarly, Dr. Pankaj Tiwari, Managing Director of Aero Pharmaceuticals Pvt. Ltd., described the energy audit process as enlightening, helping identify ways to optimize energy use while ensuring compliance with international safety and quality standards.

Ranjan Prakash Shrestha from the Delegation of the European Union to Nepal said the project’s support has inspired industries to continue pursuing energy efficiency efforts even beyond the program period.

RBBL Chief Executive Officer Devendra Raman Khanal praised the participating industries for contributing to national sustainability efforts, saying such collaborations will have a long-term impact on Nepal’s energy future.

Green energy finance specialist Rajiv Mangal Joshi highlighted that the initiative promotes sustainable industrial practices, compliance with environmental standards, and decent labor practices.

Implemented under the REEEP-GREEN Project with joint financial support from the European Union and the German government, the grant program provides partial financial assistance for high-impact energy efficiency initiatives.

Officials at the event said the outcomes demonstrate the potential to channel more investments from both public and private sectors through loans or blended financing in the future. The program is expected to encourage more industries and enterprises to adopt energy-efficient practices and contribute to Nepal’s sustainable development. -- RSS