Prem Sagar SubediNational Advisor
Productive Energy Use ComponentAlternative Energy Promotion Centre (AEPC)
NATIONAL RURAL AND RENEWABLE ENERGY NATIONAL RURAL AND RENEWABLE ENERGY PROGRAMME/AEPCPROGRAMME/AEPC
AEPC/NRREPAEPC/NRREP
Technical Support
Technical Support
Productive Energy UseProductive Energy Use
Central Renewable Energy
Fund
Central Renewable Energy
Fund
Productive Energy Use Component
To contribute to an increase in income generation and employment potential for MSMEs in rural areas, particularly for men/women belonging to DAGs
PEUCPEUC
• 20% income of MSMEs increased in RE catchment areas
• 1,300 existing MSMEs upgraded
• 2,800 new MSMEs established
• 15,300 HHs supported through IGA
• Employment increased by 19,000 4
5
Supports of PEUC: TechnicalSupports of PEUC: Technical Business Development
Business Opportunity Assessment Facilitation for business plan development Facilitation for business registration Networking with business development service providers Training
Business Orientation Enterprise Creation Training Business Management Training Skill Development Training
Facilitation for Marketing and Market Linkage Regular Follow-up and Monitoring
6
Supports of PEUC: FinancialSupports of PEUC: Financial Individual Enterprise: Max. of Rs 100,000/- not
exceeding 30% of total equipment and hardware cost,
Community based Enterprise: Max. of Rs 300,000/- not exceeding 50% of total equipment and hardware cost,
Additional: Max. of NPR 10,000/- for Single Women, Disadvantaged Groups, Poor, Disaster and Conflict Victims, Endangered Community identified by GoN
IGA: Maximum of 75% of total investment not exceeding NPR 10,000/-
PEU-MSMEs Support Cycle
Progress Till Date
MSMEs – 850+ (around 500 MSMEs are in pipelines)
IGAs – 3000+Employment – 3625+Investment – 315m
Types of MSMEs
• Production type– Local consumption– Import Substitution– Export to regional, national and international markets
• Services to local people
• Forest Based:- Furniture, Lokta, Allo, Sugandhid Oil,..
• Agro-based: Coffee, Masala, Tea,..
• ICT: Computer and FM
• Service: Beauty Parlor, tailoring, Fresh house, Poultry, Photocopy, Money transfer, Printing Press,…
• Dairy: All dairy related service
• Manufacturing: Bakery, Stone, Aran, Grill, Block, Mauri ghar, Chowmein, Tile making,…
• Milling service: Hulling, grinding and Expelling
Types of MSMEs
Sustainability: Khamarikhola MHP (53kW), Surkhet
MSMEs- 18 IGAs – 25Total investment- Nrs. 8.8M Subsidy- NRs. 2.2MEmployment -28 full time 22 part timeIncreased in Tariff from the baseline: 65%
04/15/23 12
Economic Growth: Annapurna Lokta Paper and handicraft
04/15/23 13
Total Investment: Nrs 560,000
Subsidy from AEPC: 80,400
Full Time Employees: 6
Part Time Employees: 5
Average Monthly profit: 61,000
(Seasonal enterprise -runs for 6
months)
Value addition of the product by
making handicrafts
Powering Education: Computer Training Center in Baglung
04/15/23 14
Powering Communication: A FM station in Kharbang
04/15/23 15
Powering Health Services:
04/15/23 16
Powering Agriculture: Lift irrigation
04/15/23 17
Powering Livestock activities: A poultry farm in Sindhuli
04/15/23 18
Value addition for local resources: Drinking Water, Ghandruk, Kaski
04/15/23 19
Challenges
• Business orientation of MHPs management committee and users
• Reliable power supply from MHPs• After sales services for equipments installed
(transportation and expert’s cost)• Scale – production and improved quality• Access to finance
OpportunitiesOpportunities
• Local resources and relatively cheap labour cost• Returnees from foreign employment• Quality enhancements, Branding, market linkages• Encouraging social investors from cities to invest
in rural enterprises• Rural industrial cluster/estate
Mini grids for basic lighting services
Mini grids for earning money
Promoting MHPs as enterprises
• Community property private management• Rural electricity utility managing multiple MHPs
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