Energy Efficiency Financing in Panchakanya Steels Pvt Ltd.
Established in 1981, Panchakanya Steels Pvt Ltd holds a prominent position as a leading re-rolling mill in Nepal, serving as a crucial manufacturing arm within the Panchakanya Group. This firm specializes in the production of Thermo Mechanically Treated (TMT) steel bars for the first time in Nepal. With its everyday sound of machines, a silent revolution was underway—the revolution of energy efficiency implementation & financing. Journey begins in year 2018, when company decides to undertake the Investment Grade Energy audit in its plant. The report details various energy-saving options along with their respective investment costs.
The first step was a monumental leap—the furnace up-gradation and automation. With the introduction of a cutting-edge flue gas analyzer and controller, the company could now monitor oxygen and carbon dioxide levels precisely. The benefits were abundant: lower smoke emissions, reduced iron oxide formations, and a significant drop in fuel consumption. The investment was huge, worth of 1 Million NPR, but what followed was astounding—a payback period of just five months.
The journey continued with the installation of a Variable Frequency Drive (VFD) unit for a 100 HP cold water pump. This addition not only enhanced operational quality but also ushered in savings in water and electrical energy. Costing around half million NPR, the VFD’s payback period was a respectable eight months.
Another milestone came with the introduction of an air-oil lubrication system and installation of high-speed pinch roll and HSS (High speed steel) shaft in the finishing stand. The total investment of 0.7 Million and 0.2 Million NPR repectively, the return on investment was evident in a mere 3.5 years. The system drove savings in oil and grease consumption, reduced breakdown times, improved quality, and ensuring smooth operations throughout the facility.
Embracing new technology, the incorporation of Computer numerical Control (CNC) lathe machines proved groundbreaking. The investment soared to approximately 7,500,000 NPR, but the results were transformative. Not only did it streamline operations by reducing manpower dependency and eliminating old, traditional lathe machines, but it also cut down power consumption significantly. All this led to a payback period of 4.5 years.
The company didn’t stop there. The replacement of power transmission spindles brought about lower power consumption and decreased breakdowns, with an investment of around 1.2 Million NPR and a payback period of 2.5 years.
And then, the transition to a more efficient air compressor marked yet another stride towards sustainability. Despite the 5.5 Million NPR cost, low-power consumption compressor promised ease of maintenance and a payback period of about 6.5 years.
Supported by grant finance of NPR 7,790,644 from KfW Development Bank, acting on behalf of the German Federal Government and the Federal Ministry for Economic Cooperation and Development (BMZ), alongside internal company investment of NPR 27,621,376 making total of NPR 35,412,020 has been Energy efficiency financed by Panchakanya Steel Pvt Ltd & has elevated its operational efficiency and reshaped its dedication to sustainability. These proactive initiatives extended beyond financial gains, serving as evidence of their unwavering dedication to a more eco-friendly and streamlined future.
