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Millions
of dollars are spent in the form of grants, subsidies and loans to
make this earth a cleaner place. But are the present cleaner
options – easily available, more efficient, cost effective,
technologically successful and most important, accepted by the
society at large?
Keeping these questions in mind, a new initiative “India Brick
Project” was supported by the Swiss Agency for Development and
Cooperation and implemented by Development Alternatives, TERI, Gram
Vikas and Damle Clay Structurals Pvt. Ltd. was launched. The major
stakeholders including brick entrepreneurs, policy makers and
regional industry associations agree that the Vertical Shaft Brick
Kiln Technology is a highly viable and appropriate solution for
Indian conditions.
Policy Support
Policy support has been forthcoming from the Central Pollution
Control Board (CPCB). The Central Board is preparing to issue draft
notification for Emission standards and stack height regulation for
the Vertical Shaft Brick Kilns. In their opinion, the Vertical
Shaft Brick Kilns are energy efficient with low emission levels and
do not require high stacks unlike BTKs. Most recently, the
Central Board has recommended to the state Pollution Control Board
and PCCs to promote VSBK technology for brick making.
Capital Financing
Brick industry has two profiles of entrepreneurs.
a) The large manufactures (annual production > 40 lacs) who have
high capital intensive set ups like BTKs.
b) The medium scale manufacturers and clamp operators with annual
production between 1 lakh to 20 lakh bricks / annum. They generally
operate on low capital margin with negligible fixed investments.
The financing options available to medium scale entrepreneurs are
indeed limited as majority of finance is needed for working
capital. Banks and financing institutions shy away from providing
finance as there are no tangible fixed assets and the traditional
brick business
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 is
susceptible to vagaries of weather VSBK requires almost 20 times
lesser time and investment as compared to clamps and BTKs. Risk for
offering credit to VSBK is further reduced as kiln itself act as
permanent fixed investment and can be used as collateral security.
The pulse of increasing confidence among bankers can be easily
assessed from the fact that a loan was sanctioned from ‘Oriental
Bank’ Shivpuri (M.P) to a women entrepreneur in short time of just 8
days. Currently more than 6 entrepreneurs have taken loan from bank
under KVIC margin money scheme.
From the point of view of banks and financial institutions,
Development Alternatives is working towards achieving better
technological performance with higher level of appropriate
mechanization. This will benefit the entrepreneurs in terms of
arranging financing for capital investments. At present, the
capital expenditure is on account of mechanized lifting, lifting
screw and trolley arrangement, pugging mill and brick extruder.
Production Flexibility
VSBK gives a unique flexibility in brick production where one can
easily change his productivity by decreasing or increasing the
operations at its shafts.
Labour
Friendly
VSBK offer a conducive environment for the brick workers to work an
almost smokeless and dust free environment.
With this perspective in mind DA with its sisters concern TARA is
preparing a roll out plan to establish large number of kilns in
coming five years in Bihar, M.P, U.P., Rajasthan, Orissa,
Chattisgarh and Raipur.
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