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EnDev’s PUE intervention

The Gramin Samudayek Vidhyut Sahakari Sanstha was registered in September 2005 as a Community Rural Electrification Entity (CREE) to provide electricity in Naubasta village in the Banke District. After two months of operation, it received financial assistance for further grid extension from the revolving fund of the Nepal Electricity Authority, which has received support since 2008 from the Energizing Development (EnDev) programme that is implemented by GIZ.

The funds were used to purchase a transformer, which enabled the use of electricity in productive activities. There were 1,105 beneficiaries in the first phase of electrification, followed by 500 households in the second phase. Additionally, to promote productive uses, electricity training was provided to potential entrepreneurs of the CREE area.

As a beneficiary of Productive Use of Electricity (PUE) training and facilitation, a local entrepreneur Mr Sher Bahadur Basnet established an enterprise producing incense sticks. He uses electricity in various stages of production, from the mixing of raw materials to the final product, which is then purchased by local brand commercial companies. As incense stick production requires other materials, the entrepreneur has identified the possibility of involving neighbouring communities in the value chain. Currently, he plans to prepare all the raw materials locally using machinery and local human resources. However, the upfront cost of NPR 200,000 for additional machinery is too high for the entrepreneur.

Meanwhile the component is looking at possibilities of linking the entrepreneur with local microfinancing institutions. It is estimated that 150 new jobs will be created and local materials can be utilised if this machine is installed. He is now looking for microfinance opportunities to grow his business and succeed.