NEEK resumes 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 started exporting its product to Bhutan after three years.

According to the company, they have resumed exporting their products after the dropdown in cases of the Covid-19 pandemic.

After the electrification work intensified in Bhutan following the end of the Covid-19 pandemic, Bhutan Power Corporation Limited (BPC) called for a global tender to purchase transformers. NEEK was selected in the bid, leading companies from various countries including India. “We have already started manufacturing and exporting transformers as per their required specification,” said Kush Kumar Joshi, managing director of NEEK.

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.

NEEK and the BPC in this regard, signed an agreement on November 18, 2022. As per the contract, NEEK will have to supply the BPC with 160 transformers having a capacity range between 15 kVA and 1250 kVA, at the cost of Rs 141.43 million (1.071 million US dollars).

"Nepali products are competitive even in the international market," Joshi said. "Nepali industry can also earn ample foreign exchange from exporting their products and contribute significantly to the country's economy."

Joshi added that they can expand their market even to other South Asian countries, apart from Bhutan, if the government provides export subsidies. “We are now looking forward to expanding the domestic market while studying the wider possibilities of foreign markets.”

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 leading in making 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. According to the company, it has received a contract to sell 10,000 distribution transformers in various agreements and has handed over 7,000 units so far.

The company has expanded its reach to rural electrification, construction of hydropower projects, community-based organizations and public enterprises inside the country. It has been manufacturing, selling and exporting transformers since 1992.