NEEK exporting Nepali transformers to Bhutan after three years

Kathmandu: Nepal Ekarat Engineering Company (NEEK), one of the manufacturers and exporters of Nepali brand transformers, has received a permit to export its product to Bhutan after three years.

NEEK has been in the transformer business for the past three decades. After the spread of the coronavirus pandemic, the company’s export came to a halt. “Due to a decline in construction of power plants and other electrification-related works during the impacts of coronavirus, the demand for Nepali transformers fell heavily in Bhutan,” said Kush Kumar Joshi, managing director of NEEK.

NEEK and Bhutan Power Corporation (BPC) in this regard, signed an agreement on November 18. As per the contract, NEEK will have to supply the BPC with 120 transformers having a capacity range between 15 kVA and 1250 kVA, at the cost of Rs 145 million (1.1 million US dollars). NEEK has been given a deadline of the next 15 months to make the supply.

NEEK has been selected through the global competition called by BPC. Last year too, the Bhutanese corporation called for similar bidding. “We and companies from India and many other countries participated in the bidding. However, the Bhutanese authority canceled the tender call on the pretext of some internal reasons,” Joshi told Urja Khabar.

Previously, NEEK had exported Nepal-made transformers to a number of countries including Bhutan and Bangladesh. By importing necessary raw materials, the company manufactures the electrical appliance at its production unit based in Hetauda. It has also been playing a leading role to make the country self-reliant in transformer.

Apart from exports, NEEK has also been expanding its reach in domestic areas. Since last year, the company has bagged a contract to supply 3,000 transformers to the Nepal Electricity Authority. Out of the contracted number, many have already been delivered, according to the company.

NEEK has the capacity to manufacture 10,000 units of transformers annually. The company has expanded its reach to rural electrification, construction of hydropower projects, community-based organizations and public enterprises inside the country.