Nepal, Oct. 14 -- Industries in Bagmati Province are operating at just 41.08 percent of their installed capacity due to unreliable electricity, rising production costs and dependence on imported raw materials and fuels, according to a Nepal Rastra Bank (NRB) report.

The Economic Activities Study Report of Bagmati Province for FY 2025/26, released on Tuesday, found that frequent power disruptions and voltage fluctuations have forced industries to rely on costly alternative energy sources.

Industrial capacity utilization increased by 3.59 percentage points from 37.49 percent in the previous period. However, factories continue to operate at less than half of their total capacity. The noodle industry recorded the highest capacity utilizati...