Study on assessment on improvement of industrial environment in nepal

GOVERNMENT OF NEPAL
MINISTRY OF INDUSTRY

Study Report on
Assessment on Improvement of Industrial
Environment in Nepal

Jointly submitted by:

Cemeca Human Resources Pvt. Ltd. Solar Energy Foundation
Anam Nagar, Kathmandu, (SEF Nepal)
Nepal Kathmandu, Nepal

JULY 2009

Table of Contents

Contents
1 BACKGROUND ......................................................................................................................................... 2
2 OBJECTIVE ............................................................................................................................................... 3
3 METHODOLOGY ..................................................................................................................................... 3
4 OVERVIEW OF MAJOR ENVIRONMENTAL DEVELOPMENTS AND TRENDS ....................... 4
5 OVERALL SCENARIOS OF NEPALESE INDUSTRIES................................................................... 11
6 FINDINGS OF INDUSTRIAL ASSESSMENT ..................................................................................... 18
7 CONCLUSION AND RECOMMENDATIONS .................................................................................... 19
8 ANNEXES ................................................................................................................................................. 21

Industrial Environment Study 1

1 BACKGROUND
1.1 Preamble
This document aims to provide a policy study to address the industrial environment and energy use
pattern of Nepalese industries.

Industrialization is a cornerstone of socio-economic progress and a crucial prime-mover of
economic growth, especially country like Nepal. In the past, the selection of technologies and
industry components was based mainly on financial conditions with a view to maximizing economic
output and practically little, if no, inputs are regards environmental issues was included in the
planning process. This lack of concern for environmental matters has led to serious pollution and
unsustainable production practices in many countries.

Nepal is not an industrialized country and nor does it have the vast number of industries that can
cause serious environmental damage, as do the industrialized countries elsewhere in the world. But
localized pollution is causing problems everywhere in the country and it is also one of the major
factors responsible for the high levels of various respiratory diseases and pollutions of river and
land. Owing to factors like resource constraints, short-term profit oriented practices, lack of
expertise to conduct tests and energy efficiency measures, there are many industries yet to be
investigated for their environmental problems.

The government has been trying to solve the problems of environmental pollution by applying
various methods. Nepalese industries and institutions will not be able to combat pollution by
installing equipment which is very costly and which demands highly skilled experts.

On the other hand Nepalese industries have been facing problem of unreliable sources of energy
supply for production process. The load shedding of at least 16 hours have almost diminished
industrial productivity. Although by initiation of Ministry of Industry the power supply has been
guaranteed for industrial districts. This applies only industries that are situated in industrial districts.
But, no efforts have been made for searching new and renewable energy sources of supply for
application of industrial process in Nepal.

This discussion reveals that still there is a need of environmental measures to be followed by many
industries and search for sustainable energy supply system. Therefore, the CEMECA Human
Resources Pvt. Ltd., Kathmandu, Nepal jointly with the Solar Energy Foundation (SEF Nepal),


Nepal have been assigned to conduct an assessment study on Improvement of Industrial
Environment in Nepal and submitted to the Government of Nepal, Ministry of Industry. The study
has conducted the study and has submitted the report.

2 OBJECTIVE:
The objectives of this proposed study were as follows.

• To study the industrial pollution condition in Nepal
• To study the energy supply system in industries
• To study the needs of industrial pollution reduction activities in Nepal

3 METHODOLOGY:

Varieties of methods were employed to gather the information required for this study. These
methods included:
a) The study was mainly based on the desk study by reviewing relevant literatures. However a
number of walkthrough filed visits have been conducted for selected corridor of industries.
Literature review has been carried out through reports, journals, data book, books and also
electronic media. This desk study was mainly focused to formulate the study.
b) Walks through field works have been carried out including interview type survey of selected
industries, such as Hetauda, Butwal, Bhairahawa, Patan Industrial District and Balaju
Industrial District. The field works was mainly consists of application of cleaner production
methods, reduction of environmental pollution measures and type of energy supplies.
c) After field work the data have been complied and analysis has been carried out.


4 OVERVIEW OF MAJOR ENVIRONMENTAL
DEVELOPMENTS AND TRENDS

Nepal has an area of 147,181 sq. km and an average north-south width of 193 km and east-west
length of 850 km. It consists of three main physiographic regions, viz., Mountains, Hills, and Terai
(plains). Of the country’s total area, the mountain and hill regions together account for nearly 77%
while the Terai region accounts for the remaining 23% of the area. But in terms of population, the
Terai region had nearly 47% of the country’s estimated total population of 22.37 million in 1999 and
the Mountains and Hills the rest.

The overview of the general environmental conditions of the country is given under two headings:
environmental resources and social and economic driving forces. The country has diverse
environmental resources: water, forests, land, climate and weather, and biodiversity. The country has
enormous hydropower potential. Forests still occupy the largest proportion of the land area. The
diverse climatic condition makes it possible to grow a wide variety of agricultural crops. With the
diverse climatic conditions, together with the forests, the country is rich in biodiversity. Due to the
lack of capital and human resources, commitment on the part of the government, and awareness
among the general mass of the people, the country has not been able to utilize these vast resources
to the extent desired. The resources are deteriorating instead. Landslides, soil erosion, deforestation,
forest fires, and so on have caused the land to deteriorate, water sources to dwindle away, rivers to
flood, biodiversity to deplete, and people to migrate into urban areas and elsewhere.

Urban areas have developed haphazardly creating acute problems of solid waste, water pollution, air
pollution, noise pollution, and others. The country has a broad-based population structure,
indicating a high fertility rate. The gainful population is increasing, and is quite large compared to the
availability of employment opportunities. Roads, the backbone of industrial 4 develpment and social,
economic, political, and spatial integration, have not yet reached all 75 district headquarters and,
therefore, most of the human settlements cannot be reached by road. The existing infrastructural
facilities, including roads, electricity, health, schools, and water are inadequate, not only for the needs
of the people but also in terms of use of existing resources.


4.1 Key National Environmental Issues
The key environmental issues of Nepal are related to forests, soil, solid waste, water, and air. These
environmental resource bases are described in terms of a pressure-state-impact-response framework.

4.1.1 Forest depletion
The forests, a major resource base of Nepal, cover an area of 42,682 sq.km, 29% of the total land
area, and shrub covers 15,601 sq.km or 10.6% of the total area. Forest depletion is one of the major
environmental issues in the country. The forests have decreased in both area coverage and density
over previous decades. Landslides, soil erosion, floods, encroachment of forests by cultivated land
and people for settlement, among others, have been responsible for this.

Out of the total land area in the country, the forest area, according to the Land Resources Mapping
Project (LRMP) accounted for 38% in 1978/79; in 1994 the area had declined to 29%. The shrub
area increased during the same period from 4.7 to 10.6%. This has been mainly due to uncontrolled
cutting of trees for fuelwood and forest clearance for agricultural land. Between 1978/79 and 1994,
the estimated rate of annual deforestation in the Hills was 2.3% compared to 1.3% in the Terai,
while for the country as a whole it was 1.7%. During the same period, the annual decrease in forest
and shrub together was 0.5%. In terms of area, the forests of the country decreased by 24%, while
shrub area increased 126%.

The agricultural area increased from 235,900 ha in 1980 to 2,968,000 ha in 1985 and then remained
constant up to 1999. This increment was mainly due to the encroachment on forest areas. The forest
was also encroached by development works and human settlements. In easternNepal, the forest area
decreased as a result of construction of Bhutanese refugee camps in and around the forests.

There has been a decrease in the growing stock rate of the trees. In 1985, the total growing stock
was 522 million cubic metres of bark up to 10 cm top diameter, and this dwindled down to 387.5
million cubic metres in 1999. The growing stock for sal (Shorea robusta) in the Terai forests declined
from 101 m3/ha to 72 m3/ha and for other hardwood forests the decline was from 76 m3/ha to 58
m3/ha.

Fuelwood constitutes 78% of the total fuel consumption and its use is one of the main causes of
forest depletion. This is basically due to the lack of alternative fuel to wood. As a result, distances


from the villages to the forests have increased. The forest has also been under great pressure from
the ever-increasing demand of the livestock population for grazing and fodder. Species of flora and
fauna have also declined due to forest depletion. In 1996, 47 endemic plant species were found to be
under immense threat. The country’s threatened animal species, including mammals and birds, had
shares of 3.8 and 2.3% respectively of the world’s endangered species. Landslides, soil erosion, and
floods have occurred as a result of the clearing of forests, particularly in the hills. While
sedimentation has taken place in downstream areas, the occurrence of floods and landslides has also
affected human life and property.

Some government policies have appeared to contribute to forest depletion. For instance, the ‘Private
Forest Nationalization Act 1957’, which was implemented to consolidate the protection and
management of the forests, rather led to degradation of the forests by providing people with
uncontrolled access to forest areas. Similarly, the Land Tax Act 1977 encouraged people to cut trees
standing around their farms, as the act defined land with forest as government land.

Nepal has tried to mitigate forest depletion by passing legislation such as the Forest Protection Act
(1967), National Parks and Wildlife Conservation Act (1973), National Forestry Plan (1976), Master
Plan for the Forestry Sector (1989-2010), Nepal Environmental Policy and Action Plan(1993),
Buffer Zone Regulation (1996), and Plant Protection Act (1997) and introduction of programmes
like the community forestry programme. The government has adopted an appropriate technology
for alternative energy to fuelwood. The Alternative Energy Promotion Centre (AEPC) has prepared
a twenty-year master plan to provide alternative energy sources such as biogas, improved cooking
stoves (ICS), and solar energy from photovoltaic systems.

4.2.1 Soil degradation
Nepal’s mountains and hills are inherently vulnerable to landslides and soil erosion. The rapid
growth of human and livestock population is putting severe pressure on Nepal’s natural resources,
especially soil. Deforestation, degradation of grasslands, encroachment of steep slopes, and intensive
agriculture are leading to soil degradation. Unbalanced use of chemical fertilizers is also causing soil
degradation through change in soil structure and acidification.

Development works, particularly the construction of mountain roads without adequate conservation
measures, have also contributed to landslides and soil erosion. Studies have shown that 60–80% of


the total annual soil loss from cultivated terraces occurs during the pre-monsoon season. The
declining soil fertility has resulted in stagnancy in the production of major food crops. The one-way
flow of nutrients from forest to farmland has resulted in rapid depletion of nutrients in forest soils.
The Ninth Plan (1997–2002) realized that the decline in crop production is mainly due to soil
degradation.

The policy responses of the government in terms of addressing the problem of soil degradation are
the establishment of the Department of Soil Conservation and Watershed Management; formulation
of the Soil and Watershed Conservation Act 1982 and its Regulations 1984; Forestry Master Plan;
Community Forestry Programme; and Agricultural Perspective Plan.

4.2.2 Solid waste management
Solid waste management problems are caused by the introduction of plastic materials and changing
consumption patterns, especially in urban areas, and these have resulted in an increase in the volume
of solid waste. The urban population makes up about 15% of the country’s total population.
However, the rapid growth in urban population by over 5% per annum in Nepal has exerted
tremendous pressure on the urban environment. One consequence of this is an increasing amount
of garbage, which is often seen littering city streets or in dumps on the river banks and in other
public places.

Urbanization in Nepal is characterized by haphazard and unplanned urban growth, inviting many
environmental problems such as encroachment of public areas and river banks, air pollution, water
pollution, and solid waste. Among these, solid waste seems to be the most visible problem.
Households are the main sources of solid waste in Nepal. The per capita waste generation is
estimated to be 0.48 kg per day. In 1999, about three million urban residents in Nepal’s 58
municipalities generated a total of 426,486 tones of waste, to which the city of Kathmandu alone
contributed 29%. Of the total waste generation in the country, solid waste made up about 83%,
agricultural waste constituted 11%, and industrial waste accounted for 6%.

The major types of hazardous waste generated in the country are medical waste, battery wastes,
pesticides, and a few types of industrial waste. An estimated 500 tones of hazardous waste is 6
generated per year from hospitals and 235 tones from dry cell batteries including factory waste. Most
of these wastes are either dumped with the rest of the garbage or burned in ordinary kilns. The total


consumption of pesticides in the country is approximately 55 tones of active ingredients per year.
BHC, aldrin, and endosulfan are commonly used pesticides. Most unused pesticides are thrown on
to open dumps. Obsolete pesticides are classified as hazardous waste. Currently, about 67 tones of
obsolete pesticides are stockpiled in unsafe conditions at various locations in the country.

In 1980 solid waste management was introduced by establishing the Solid Waste Management and
Resource Mobilisation Centre (SWMRMC) and a landfill site for solid waste in Kathmandu. Other
policy responses include the Solid Waste Management National Policy (1996), Local Self-
Governance Act (1999), and the involvement of the private sector in waste management in
Kathmandu and Biratnagar.

4.2.3 Water quality
Rivers and groundwater are major sources of drinking water in Nepal. Over time, the country’s
requirements for water for drinking and personal hygiene, agriculture, religious activities, industrial
production, and hydropower generation have increased. Major towns and cities in the Hills have
acute problems of water availability. In the Kathmandu Valley, water supply meets only 79% of the
total urban demand of 145 million litres/day during the rainy season. The carpet industries alone
consume about 6.1 million litres of water per day and generate 5.5 million litres of waste water daily.

In 1998, the total annual withdrawal of water for consumptive uses was 16.70 billion m3/year,
which accounted for 7.4% of the total capacity. In 1994, it was 5.8%. In other words, the annual per
capita withdrawal of water was 760 m3 in 1998, an increase from 650 m3 in 1994. Nepal’s rural
settlements and the majority of urban areas do not have access to sewerage networks. The domestic
waste water generated by these areas is discharged into local rivers without treatment. Forty per cent
of Nepal’s total industrial units (4,271) in 1992 were related to water pollution. In Kathmandu
Valley, this accounted for 57% of total industrial units (2,174). All industrial wastes in most cases are
directly discharged into local water bodies without treatment. The use of chemical fertilisers (NPK)
per hectare increased tremendously from 7.6 kg in 1975 to 26.6 kg in 1998. The decline in forest area
reduced the water recharge capacity of groundwater sources. The water quality of rivers and lakes
flowing through the large urban areas is deteriorating. The water quality of rivers flowing in remote
areas is still acceptable. The quantity of water for household uses is severely limited and the quality
of drinking water is poor in most cases, mainly due to the lack of treatment plants. The rivers are
also major places for disposal of urban solid waste and industrial effluents. Patient visits to hospitals


because of diarrhoeal problems have increased tremendously. A report obtained from a local
hospital in Kathmandu showed that 16.5% of all deaths were due to water-borne diseases. Rivers,
ponds, and lakes, particularly in the major urban areas, have been greatly affected by dumping and
discharging of household waste, sewerage, and industrial affluents into them. The aesthetic value and
biodiversity of water bodies have also been affected. The policy measures for water resource
conservation include the Water Aquatic Animals Protection Act (1965), Solid Waste Act (1987),
Solid Waste Regulations (1989), Water Resources Act (1992), and Resources Regulations (1993).

4.2.4 Air pollution
Air quality, particularly in the large urban areas of Nepal, has deteriorated. Several factors are
responsible for this.
• The energy supply in Nepal comes largely from traditional sources such as fuelwood,
agricultural residues, and animal waste. These sources make up nearly 90% of the total
energy consumption. Other sources like petroleum fuel, coal, and electricity share the
remaining 10%.
• The number of vehicles is rising rapidly, particularly in the major urban areas. The total
number of vehicles in the country increased from 75,159 in 1990 to 220,000 in 1998. The
two- wheeler was the largest, accounting for nearly 51% of the total vehicles. As a
consequence, the consumption of petrol and diesel increased from 31,056,000 litres and
195,689,000 litres in 1993 to 49,994,000 litres and 315,780,000 litres in 1998. All the
vehicles (four wheels and two wheels) are responsible for emitting pollutants such as
carbon monoxide, hydrocarbons, nitrogen dioxide, sulphur dioxide, suspended particulate
matter, smoke, and soot.
• In 1994, Nepal’s total industries numbered 4,487, of which 74% were classified as air
polluting industries. Of the total air polluting industries, Kathmandu alone had 33%.
• Emission of carbon dioxide was estimated to be 15.45 x 10 tones in 1999. Annual
emission of greenhouse gases (GHGs) from petroleum products was estimated at 72,000
tones of carbon and 1790 tones of nitrogen from 1970-1990. Methane production was 1.2
million tones in 1997. Due to deforestation and burning of fuel wood, the concentration
of carbon dioxide (CO2) in the atmosphere has increased. It is estimated that the annual
deforestation of 26,602 hectares of land has emitted 7.77 million tones of CO2 into the
atmosphere.


• The 1996 survey identified CFC-12 and HCFC-22 as the only ODS consumed in Nepal,
about 29.058 tones and 23.04 tones per annum respectively. There is no production of
ODS substances in Nepal.
• The impacts of air pollution in Nepal are as follow.
- Air pollution has had a direct impact on human health. Respiratory diseases increased
from
10.9% of the total outpatient visits (5,167,378) in 1996 to 11.6% of the total outpatient
visits (7,115,981) in 1998.
- The inhabitants of Nepal’s mountain region are much more vulnerable to respiratory
diseases because of the burning of fuel wood in poorly ventilated houses. Hospital records
show that a greater number of respiratory diseases occurred in the urban population than
in the rural population; and this may be due to the smoke and dust emitted from vehicles
and industries. Acute Respiratory Infection (ARI) accounted for more than 30% of total
deaths in children under five years of age. A significant proportion of the population, in
both rural and urban areas, is affected by bronchitis caused by domestic smoke.
- The air quality in Nepal’s major urban areas has deteriorated because of the emission of
smoke from vehicular traffic. Dust particles emitted by cement factories have caused an
adverse impact on vegetation growth, as well as low visibility and low degree of incoming
sunlight.
• The measures undertaken by His Majesty’s Government of Nepal to mitigate air pollution
are the Industrial Enterprises Act (1992), Vehicles and Transport Management Act (1993),
Nepal Petroleum Products Act (1993), Nepal Mines Act (1996), Environmental Protection
Act (1996), and Nepal Vehicle Mass Emission Standard (2000). Restriction of the
registration of two-stroke
Engine vehicles in important tourist towns are an important measure for mitigating air
pollution in Nepal. Nepal had ratified the Montreal Protocol in 1996 and, accordingly, the
Ministry of Industry has introduced activities to phase out ODS by 2010.


5 OVERALL SCENARIOS OF NEPALESE INDUSTRIES
Industrial development in Nepal is still in primal phase. Contribution the gross domestic product of
this sector is estimated to be around 10 percent. Altogether, industrial sector utilizes only about 3.4
percent of total energy consumption 270.9 million Giga joules. The Industrial Census of 1992
indicated that total number of manufacturing establishments in Nepal was 4271 and that for the
Kathmandu valley was 2174, with employment of 224000 and 130000 persons, respectively.
According to census, these manufacturing units employ either 10 or more persons.

Industries like carpet, garment and printing are more centralized in the Kathmandu valley than in
other parts of the country. It should be noted that the valley alone accommodates about 50 percent
of total industries in Nepal. But exact situation of small scale industries, i.e., less than 10 people
employed in per unit, is still unclear. Nevertheless, Central Bureau of Statistics has projected around
46418 numbers of small units in operation through out the country on the basis of sample survey of
1991.

5.1 Industrial discharges scenarios
5.1.1 Air Pollution
The main sources of airborne pollutants from industrial sector are combustion of fossil fuels for
heating and power, and waste gases and dust from industrial processes and sites. Either the average
production capacity or fuel utilization patterns of Nepalese industries compel to say that emission of
different type of pollutants may cause a localized air pollution problem. In Nepal total number of air
polluting units is estimated about 3156 and that for the Kathmandu valley alone is around 47.5
percent. But, all of these manufacturing units are identified for the emission of TSP, CO, VOC,
NO2, and SO2. Meanwhile, present emission inventory is limited to TSP and SO2 only.

5.1.1.1 Total suspended particulates (TSP)
5.1.1.2 Central Development Region
5.1.1.2.1 Kathmandu valley

This primal finding reveals that TSP release at the Central Development Region is the highest,
57800 tons in the country. Similarly, other significant aspect within the CDR is the TSP release in
the Kathmandu valley which is around 65 percent (37800 tons). Moreover, industrial TSP discharges
at the Kathmandu valley is approximately 50 per cent of total TSP release in Nepal (76390 tons).


In general, TSP load in the valley atmosphere from medium and large size industrial sectors is
estimated at 104 ton per day out of which, contribution of brick kilns and Himal cement factory is
77 and 20 percent, respectively. But it should be noted that operation of brick kilns is seasonal
which start from November/December to May/June as well as energy utilization by brick kilns is
also inconsistent, while the Himal cement factory runs throughout the year. Likewise, TSP emission
from other industrial miscellaneous sources is about 3 ton per day.

The ambient air quality monitored during 1993 at different industrial areas and traffic zones in the
Kathmandu valley evidenced that major air polluting parameters like TSP and SO2 were more or
less comparable between the heavy traffic centers such as Singha Durbar and GPO complex, and
industrial areas like the vicinity of Himal cement factory and Bhaktapur industrial district. In case of
other industrial areas such as Patan and Balaju, ambient air quality was relatively clean than the heavy
traffic centers (Devkota, 1993).

5.1.1.3 Central Developing Region excluding the valley
Industrial TSP release at the Central Development Region excluding the Kathmandu valley is
estimated at 19950 tons which is about 26 percent of total industrial TSP scenario. Bricks, cement,
sugar mills and iron and steel allied industries are key air polluting industries in this area.

5.1.1.4 Eastern Development Region
It has been estimated that the TSP release at this region is about 9 percent (6600 tons) of total
industrial TSP discharges. Major air polluters have been identified as bricks (5400 tons), soap and
detergents (550 tons), iron and steel basic industries (440 tons), and cement and allied (178 tons).
5.1.1.5 Western Development Region
Industries responsible for TSP release at the Western Development Region are perceived as
structural clay products (4700 tons) and cement (700 tons). Altogether, different types of
manufacturing units contribute about 5500 tons of TSP in this region.
5.1.1.6 Mid and Far Western Development Regions
The Mid and Far Western development regions contribute only 2600 and 3800 tons TSP,
respectively. The only notable air polluting industrial source in both regions is structural clay
products. It has been incurred that this sector alone contributes about 99 percent of TSP.
5.1.1.7 National Context
In the national context, structural clay products, and cement and allied units contribute 70 and 27
percent of TSP load in ambient air, respectively out of total TSP 76390 tons. In general, major types


of industries responsible for air pollution in Nepal are brick kilns, cement factories, metal casting
and allied works, boilers of paper, sugar and distillery as well as other utilities, which have both
outdoor and indoor health significance. But for immediate action brick, cement and other major coal
and boiler utilizing industries need to prioritize first.

5.1.2 Water Pollution
Water pollution from industrial sector is much dependent on adequate supply of water. The quantity
of water used by industry varies widely. An industrial process whereby water is used ultimately
generates waste-water which may result as pollution in the nearby aquatic systems because some of
the products or almost all of the byproducts are discharged into them. Pollution of the waterway is
often caused by single or combination of the different natures of industrial discharges such as
oxygen demanding wastes, disease causing agents, synthetic organic compounds, plant nutrients,
inorganic chemical and minerals, sediments, thermal discharges and oil. Regional distribution of
leading water polluting industries in Nepal in 1992 is depicted in Table 6. A general scenario of
water pollution load as parameter and development region wise in Nepal is presented in Figures 6, 7
and 8 and discussed in following subunits.

I. Central development region

A. Kathmandu valley
In general, industrial effluent load in the Kathmandu valley is alarming. It has been estimated that
total industrial waste water volume in the Kathmandu valley is approximately 2.1 million cubic
meters. To which, nearly 76 present is contributed by carpet factories (1.6 million m3), followed by
dairy product 162 thousand m3, finishing textile 66700 m3, leather and leather product 62700 m3,
soft drinks and carbonated water 52000 m3, beer manufacturing 51000 m3 and distillery, rectifying
and blending spirit 50000 m3. Similarly, total BOD load of different industrial sectors is about 1150
ton, out of which sectorial contribution is as 355 ton from carpet industry, 288 ton from vegetable
and animal oil fat and 170 ton from dairy products. Likewise, total TSS effluent load has been
incurred about 1417 ton and sectorial contribution is as carpet factories 750 tons, followed by 280
tons of vegetable and animal oil and fat and 114 tons. Total industrial effluent load in the valley
could be insignificant if it is compared with that of total urban dwellers contribution. Assuming one
million people residing in the valley, annual human wastes generation rate would be as 30 million


cubic meter of waste water volume, 16400 ton of BOD, 25500 ton of TSS and 250 thousand ton of
solid waste. Correspondingly, if these figures are compared with total industrial discharges in the
valley, industrial total waste water volume is only 7 percent, 7 percent of BOD, 5.5 percent of TSS
and 0.5 percent of solid waste.
B. Central Development Region excluding the valley
The number of industries in the Central Development Region except the Kathmandu valley is 573
out of 2747. Only one fifth of this number seems to be accountable for water pollution. Industrial
effluent scenario out side the valley is different because of the nature of industries. At this region,
total waste water volume of different industries has been estimated at 2.16 million cubic meter. The
leading water polluting industries and their contribution have been assessed as 757000 m3 by iron
and steel basic industries, 454000 m3 from sugar factories and refineries, 399000 m3 from paper and
paper product, 277000 m3 of leather and leather product and 89900 m3 of vegetable and animal oil
and fats. Altogether, five different sectors are responsible for BOD discharge (1284 tons) in this
territory such as vegetable and animal oil and fat (400 tons), distilleries and allied (355 tons), leather
and leather products (308 tons) and beer brewing (95 tons) . Similarly, total TSS load at this region is
approximately 2317 tons and major industries responsible for this facet of pollution are vegetable
and animal oil and fat (840 tons), iron and steel basic industries (613 tons), leather and leather
products (506 tons) and sugar factories (128 ton) and distillery, rectify and blending industries (127
ton).

II. Eastern Development Region
The Eastern Development Region comprises about 17.5 percent of total number of industries in
Nepal (4271). Industrial waste water volume at the Eastern Development Region nearly 39 percent
more than that of the Kathmandu Valley. In this region, total waste water volume of industries
approximately 3.45 million cubic meter . Major water polluting sector and their contribution have
been estimated at 2.6 million from iron and steel basic industries, leather and leather products (0.42
million m3), and 93 thousand m3 of canning/preserving fruits and vegetables. But, in terms of BOD
contribution this region also slightly exceeds either the Valley or CDR excluding the valley with total
BOD load of 1424 tons . Major industries liable for BOD contribution are leather and leather
products (463 tons), vegetable animal oil and fat (346 tons), distill, rectify and blending spirit (205
tons) and canning and preserving of fruits and vegetables (176 ton). Likewise, altogether 3615 tons
of TSS generating industries in this region are 2139 tons by iron and steel basic industries, leather


and leather products (763 tons), vegetable and animal oil and fat (394 tons) and canning, preserving
fruits and vegetables (145 tons) (Fig. 21).
III. Western Development Region
Industrial total effluent load has been estimated as 0.7 million cubic meter of waste water volume,
1054 tons of BOD and 1350 tons of TSS. From the effluent load parameters, five industrial sectors
namely vegetable oil, sugar, distillery, leather and iron and steel are major blameworthy of water
pollution in this region. Industries responsible for conspicuous generation of waste water volume are
iron and steel industries (0.3 million m3), leather and leather product (101000 m3,), sugar factories
(97500 m3, 27%) and distillery (55000 m3). Similarly, out of 1054 tons of BOD, sectorial
contribution of industries has been incurred as 328 tons from sugar factories, 318 tons from
distillery, rectify and blending spirit, 215 tons from vegetable and animal oil and fat and 113 tons
from leather factories.

IV. Mid Western Development Region
The Mid-Western Development Region comprises major six industrial sectors are accountable for
water pollution. But total industrial effluent load of this region is the lowest by volume in national
comparison. Total waste water volume of industry at this region is estimated at 43000 m3 and 85
percent of this amount is of distillery, rectify and blending spirit sector. Vegetable and animal oil and
fat discharges nearly 3500 m3 and paper factory contribute 1600 m3 of total waste water volume
(Fig. 25). 7 Out of total 336 tons of BOD in the region, 198 tons from distillery and 137 ton from
vegetable oil (Fig.26). Likewise, total TSS generation is about 300 ton and approximately 76 percent
(228 ton) is contributed by vegetable, animal oil and fat, followed by distillery and allied unit 70 ton
(Fig. 27). Hence forth, only two sectors i.e., distillery, rectify and blending spirit and
vegetable/animal oil and fats are the primary areas interest for water pollution in this region.

V. Far Western Development Region
The Far Western Development Region comprises the lowest number of industries (159), in
comparison with regional distribution of industries in Nepal. Subsequently, industrial effluent load at
this region will be relatively insignificant, if is compared with either Central or Eastern Development
Regions. Out of total 45 different industrial sector in operation, the Far-Western Development
Region inhabits only three sector chargeable for water pollution, namely vegetable/animal oil and
fat, sugar factories and distillery, rectify and blending spirit with total waste water generation of


10500 m3 (Fig. 28). Sugar industries discharge 83000 m3 and followed by distillery 17500 m3 and
vegetable/animal oil and fat 4000 m3. Similarly, total BOD and TSS load of these industries are
estimated as 493 and 593 ton, respectively (Fig. 29 & 30). Sugar factories are leading polluters, 45
percent of BOD (223 ton) and 52 percent of TSS (306 ton) and vegetable/animal oil and fat
contribute 34 percent of BOD (168 ton) and 42 percent of TSS (250 ton).In general, industrial units
such as leather, paper, dairy, vegetable and animal oil and fat, beer, distillery and allied retains high
proportion of BOD and TSS than total waste water volume because of optimum concentrations of
organic compounds.

5.1.3 Solid Wastes
At present, majority of industries seem they do not care about solid waste generated in the
production process. The present habitual practices are; either to through away from outside the
factory perimeter or mix with other municipal garbages or dump on near by open place or river
bank or open burning. Even though, solid waste contribution percentage of industrial sector is
relatively lower, say 99 percent lower than municipal or domestic garbages in case of the Kathmandu
valley, but, in future, tendency may increase with creating a much difficulty regarding the better
management of industrial solid waste. A total solid waste generation by different industrial sector is
estimated to be 21900 tons. In case of Kathmandu Valley, important solid waste contributing sectors
are 495 tons by leather, 417 tons by distilleries and 173 tons by canning and preserving of fruits and
vegetables out of total generation 1421 tons. But, situation outside the valley within the Central
Development Region is different. Out of total 8622 tons solid waste, about 5200 tons are from sugar
factories, 2200 tons from leather and 500 tons from distilleries. In the Eastern Development Region
four sectors are the leading solid waste generating sectors out of total 9560 tons. Sectorial
contribution is estimated at 3300 tons from leather and leather products, 2800 tons from canning
and preserving of fruits and vegetables, 1150 tons from iron and steel basic industries and 1100 tons
from wine factories. In Western Development Region, leather and leather products accounted about
800 tons and 450 tons from distillery, rectifying and blending spirit out of total 1615 tons of
industrial solid wastes. Sugar and distilleries are the only significant land polluting sources in the mid
and Far Western Development Regions with total contribution of 287 and 378 tons, respectively. In
general, leather, canning, sugar, distillery, wine, plastic and rubber are the principal solid waste
contributing industries in Nepal. It seems that according to the nature of solid waste generated by
such industries, maximum percentage of waste are biodegradable, with exception of plastic, rubber


and bottles, which can be either recycled or utilized for other industries by introduction of waste
exchange system among the industries.

5.1.4 Cleaner production & energy conservation
Cleaner production is the continuous application of an integrated environmental strategy to
processes, products and services to increase efficiency and reduce risks to humans and the
environment. It aims at minimizing the waste and emissions and maximizing the product output by
analysing the flow of materials and energy inside a system. Improvements in technology help to
reduce or suggest better choices in use of materials and energy, and to avoid solid waste, waste water
effluents, and gaseous emissions, and also waste heat and noise. In the past, polluting companies
concentrated on treating the waste generated by an industrial process in an attempt to reduce its
impact on the environment, but often there was no attempt at source to reduce the overall level of
waste. With cleaner production, industrial processes can often be improved so that not only the
amount of waste, and consequently the pollution, is reduced, but money is also saved or generated
for the company, which in other words becomes a winwin situation for the company. Cleaner
production is most often applied to manufacturing processes, but it is also relevant to other sectors
of the economy, including agriculture, mining and the provision of services. Whichever is the sector,
the underlying principle is the same. Instead of relying on penalties that force companies to treat
their waste, cleaner production offers rewards in the form of increased profits and an enhanced
environmental image to those who can reduce their overall level of waste.

Cleaner Production has been pursued in many countries for several years under various names such
as pollution prevention, waste minimization, clean technology, environmental management,
materials productivity, global competitiveness, natural resource conservation, green productivity etc.
However, all these approaches represent different facets of Cleaner Production and collectively they
address the triple objectives of sustainable development, namely, economy, environment and
society.

Increasing energy demand exerts pressure on the energy producers to over exploitation of the
limited natural sources for producing more energy. In developing countries, larger part of
mechanical and electrical power is generated by burning of coal and petroleum products, which
dramatically gives birth to the second major problem, i.e. pollution. In this way, it is much significant
to sound Energy Conservation and Cleaner Production together as the balancing parts of a single


combo-solution. Energy conservation is an important element of energy planning and policy as it
leads to reduction in energy consumption and energy demand per capita and offsets the growth in
energy supply needed to keep up with population growth. This strategy reduces up to some extent
the rise in energy costs and also the need for new power plants and energy imports. The reduced
energy demand can provide more flexibility in choosing the most preferred methods of energy
production.

Energy conservation facilitates the replacement of non-renewable resources with renewable energy.
It is often the most economical solution to energy shortages, and is a more environmentally benign
alternative to increased energy production. It represents a cost-effective approach to raising
profitability, enhancing competitiveness and improving environmental performance ensuring a
sustainable development. The possibilities range from relatively simple and low cost process
modifications to sophisticated and more costly investments in pollution prevention technologies.

6 FINDINGS OF INDUSTRIAL ASSESSMENT

Upon the walkthrough filed visits in different industrial corridors and detailed interview of fifteen
industries representing various manufacturing industries, following findings are drawn:

1. Almost all industries use electricity as primary fuel. Realizing huge potential of
hydroelectricity in Nepal, these industries must have taken electricity as long term primary
fuel. But due to current energy crisis, these industries are facing hard time. On this global
competition era, our industries are facing choking energy crisis.
2. 50% of the industry used Diesel Generator Set for Captive power during loadshedding. Cost
of this alternate is very expensive hampering the finance of the industries. Small industries
which cannot afford diesel generator set had to stop their production during the
loadshedding hours.
3. Almost all of the industries raised concern for the load-shedding as the worse problem they
faced. The cost of the electricity was dependent on the industrial state.
4. Most of the industries do not carryout the waste management and recycling.
5. Majority of the industries have no idea of CDM and renewable energy and energy
management concepts. Few of them hold some knowhow but getting benefit from CDM by


any particular industry of their scale seems impractical.
6. Majority of the industries use machines which are older than 30 years. Those machines
consume more energy and are polluting too.
7. However few industries have upheld their responsibility in waste management and
pollution control, which is commendable.

7 CONCLUSION AND RECOMMENDATIONS
Based on this policy study with various methods following conclusions and recommendations have
been drawn.

1. Loadshedding is considered as the worst barrier in the industrial development. On the other
hand, energy efficiency measures are blatantly underestimated for the reduction of the crisis.
Hence government must come forward with some mechanisms for energy efficiency in
domestic industries. Some of the measures can be:
Short term strategy
• Awareness program for simple energy saving options in the industries
• Training of energy auditors
• Provision of certified energy auditors programs
• Submission of annual energy report by all the industries to Ministry of industry showing
energy intensity

Mid term strategy

• Data collection and categorization of energy intensity in different industries according to
type, scale, energy used etc
• Industries with energy intensity higher than the national standard must either improve or
close the industry
• Provision of mandatory energy auditing on the intervals of 2-3 years
• Preparation of manuals and handbooks on increasing energy efficiency on each type of
industries
• Institutional mechanism in Ministry to monitor the programs.


Long Term strategy
• Decrease the energy intensity standard regularly and force the industry to comply

2. Its usually impossible for medium scale industry to opt for a complete waste management
facility, hence a central facility should be developed by the industrial state. Never the less,
industries must try to develop simple mechanism to at least reduce and reuse their waste.
Industrial state with diverse industries may have problems in waste management. Hence the
corridor must have orientation towards developing group of similar type of industries.

3. Strong policy and monitoring mechanism must be developed by the government to control
the industrial pollution.

4. Industries can crater lots of benefit from CDM through use of renewable energy and
increasing energy efficiency. But single industry of their scale cannot proceed through the
cumbersome and expensive process of CDM. Hence a combined effort or project must be
launched to incorporate renewable energy, energy management to the industries and apply
for the CDM.
5. During the interview, industries strongly recommended the government for
o Discourage politics in labour,
o proper management of industrial state,
o training for skilled manpower,
o Easy and low interest financing,
o Reduction in the cost of electricity and
o VAT relaxation
6. There is a strong possibility of application of solar thermal energy in process industries; such
as diary industries, noodle industries, brewery industries, hotels and etc. where hot water is
primary requirement. Using solar thermal energy can reduce their energy demand in one
hand and in other hand it is clean and freely available.
7. The investment of application of new and renewable energy technology in industries may be
through soft loan and third party investment.
8. Many industrial fuel needs can be replaced by renewable energy and the carbon saved from
this fuel replacement can be trade as CDM in international market.


8 ANNEXES
1. Semi structured questionnaire used for survey
2. Name of respondents of survey
3. Summary Chart of Survey Results


1. Semi structured questionnaire used for survey

Government of Nepal
Ministry of Industry
Singha Durbar, Kathmandu

Questionnaire Survey for Assessment on Improvement of Industrial
Environment in Nepal

Conducted by:
CEMECA Human Resources Pvt. Ltd. and Solar Energy Foundation (SEF Nepal)

A. Basic Information
• Name of Industry/Company: ………………………………………………………….
• Address: …………………………………………………….
• Name of Owner: ………………………………………
• Respondent’s Name: ………………………………………………………….
• Type of product: …………………………………………………………..

B. Technical Information
1. Type of plant: ………………………………………………………………..
a. Equipment/Plant used: ……………………………………………………
b. Machine bought date: …………………………………………………….
c. Recommended life time of the machine : ………………………………………
2. Fuel used
a. Type of the fuel being used in the industry: ………………………………..
b. Cost of fuel per unit (kWh): ………………………………………..
c. Is the fuel locally available or must be imported: ……………………………..
d. Fuel consumption rate of the industry (annually / monthly/weekly/daily) :

3. Is the source of fuel reliable for your purpose :
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………

4. Do you think if there is any possibilities of replacement of fuel presently being used?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………..

5. Is the Industry under trouble due to load shedding?
…………………………………………………………………………………………
…………………………………………………………………………………………
……………………………….

6. Do you have any Self power plant (if yes then which type of power plant do you
have) :
…………………………………………………………………………………………
…………………………………………………………………………………………
……………………..

7. Do you have any idea about using renewable energy technology in your industry?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………..
8. Do you any idea about the Clean-energy Development Mechanism (CDM)?
…………………………………………………………………………………………
……………………………………………….

9. If yes then do you have any system under such mechanism?
…………………………………………………………………………………………
……………………………………………………………………………………

10. What provision do you have for the emission test for your industrial emission?
…………………………………………………………………………………………
…………………………………………………..

11. Mention these test parameters a) co :
b) co2 :
c) so2 :
d) PM10 :
e) TSP :

12. Are these all parameters under the emission standard or not :
a) Yes b) No
13. Do you have any pollution control mechanism?

…………………………………………………………………………………………
…………………………………………………………………………………………
…

14. Do you have treatment plants for waste management?

a. For the solid waste:

b. For the waste water:

c. For the air pollution:

15. If there is any re - use or re-cycling technology mention below:
……………………………………………………………………..
…………………………………………………………

16. Is there any energy production system from solid waste? (if yes then mention its type
and efficiency):
…………………………………………………………………………………………
…
……………………………………………………………….
…………………………………………….

17. Are you looking for any suitable industrial pollution reduction mechanism?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………..

18. What are the barriers of development of your industry?
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………….
19. Do you feel any change is required on Industrial policy of Government of Nepal?
…………………………………………………………………………………………
…………………………………………………………..
20. Which kind of assistance you need from Government for your efficient use of your
industry?
..........................................................................................................................................
.............................................................................
21. In your opinion, what should be done by the Government for reduction of industrial
pollution?

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………..
22. If you have any specific comments or suggestion, please write:
…………………………………………………………………………………………
…………………………………………………………………………………….

Thank you very much.
++++++++++++++++++

CEMECA Human Resources Pvt. Ltd. Solar Energy Foundation (SEF)
Kathmandu, Nepal Kathmandu, Nepal
Tel./Fax 4228024 Tel. No. (01) 4277404
Email: cemecahra@mos.com.np Email: info.sefnepal@gmail.com

Annex 2: Name of Respondents

1. Power Tech Nepal
Patan, Industrial Estate
Lagankhel, Lalipur
Nepal
2. Yeti Paints Pvt. Ltd.
Hetauda Industrial Estate
Hetauda, Nepal
3. Garika Textile
Hetauda Industrial Estate
Hetauda, Nepal
4. Sun Fitting Pvt. Ltd.
Butwal Industrial Area
Butwal, Nepal
5. Lumbini Milk Supply Scheme
Butwal Industrial Estate
Butwal, Nepal
6. Kohinoor Metal Udhyog
Butwal Industrial Estate
Butwal, Nepal
7. Lumbini Bidyut Udhyog
Butwal Industrial Area
Butwal, Nepal
8. Panchakanya Steel Pvt. Ltd.
Kotihawa, Bhairahawa
Nepal
9. Shiva Shakti Soap Industries
Butawal Industrial Area
Butawal, Nepal
10. Asian Pharmaceuticals
Parasi-9, Rupandehi
Nepal

11. Agro FRP Industries Pvt. Ltd.
Butawal Indstrial District
Butawal, Nepal
12. Sajib Plastic
Butawal Industrial Area
Butawal, Nepal
13. Nebico Pvt. Ltd.
Balaju Industrial District
Kathmandu, Nepal
14. Nakasu Engineering Pvt. Ltd.
Balaju Industrial District
Balaju, Nepal
15. Himali Bakery Pvt. Ltd.
Balaju, Kathmandu
Nepal

Annex 3: Summary Chart of Survey results for Assessment on Improvement of Industrial Environment in Nepal

Renewable/
Industry/company Alternate Problems in emission Alternative waste Machines
Name type Primary Fuel fuel Fuel test CDM? Energy reuse/recylcling Condition
Sheet Diesel Gen Yes/ no Very Old
Power Tech Nepal Metal Electricity Set loadshedding No benefit No limited (>30 yrs)
NBSM
Panchakanya Diesel Gen (CO2
Steels Pvt. Ltd. rolling mill furnace oil Set loadshedding and O2) No No limited N/M

Lumbini Vidyut Wire Diesel Gen Intermediate
Udyog drawing Electricity Set loadshedding no No No limited (20‐10)
Fabrication
&
Kohinoor Metal Assembly
Udyog plant Electricity ‐ loadshedding no No No No N/M
Std.
Diesel Solar Water
Lumbini Milk Emission Heater for Old(>20
Supply Scheme Dairy Electricity Diesel/Wood loadshedding Test no CIP No years)
Sun Fittings Pvt. Diesel Gen
Ltd. Casting furnace oil/Coal Set No No No No New(<5 )

Waste Water
Gasika Textiles Textiles Electricity ‐ loadshedding No No No Treatment New

Intermediate
Yeti Paints Paints Electricity ‐ NO NO NO ‐ limited (20‐10)

Siva Sakti Soap Diesel Gen Yes/ no Intermediate
Industry detergents Electricity Set No No benefit No No (20‐10)

Asian Diesel Gen Full Fleged Intermediate
Pharmaceuticals medicine Electricity Set loadshedding no no no (NBSM) (20‐10)
Agro Engineering
FRP Industries Pvt. Stray
Ltd. Moulding Electricity no loadshedding Heat no no limited New
Recycling
Sajib Plastics plant Electricity no loadshedding no NO NO limited n/m

Diesel Gen Yes/ no Very Old
Nebico Pvt. Ltd. biscuits Electricity Set loadshedding no application no limited (>30 yrs)
Nakasu
Engineering Pvt.
Ltd. ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Himali Bakery Pvt. Light Diesel Gen Very Old
Ltd. Bakery Diesel/Electricity Set loadshedding no yes no limited (>30 yrs)

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