BASELINE STUDY OF THE BIHAR BRICK SECTOR

Amit Kumar Singh KIIT School of Rural Management KIIT UNIVERSITY, BHUBANESWAR, ODISHA

DEVELOPMENT ALTERNATIVES AN OVERVIEW

 It is a non-profit organization engage in research and action for sustainable rural development.  It was established in 1983 and is registered under the Societies Registration Act with the Government of India VISION: A world where every citizen can live a secure, healthy and fulfilling life in harmony with nature. MISSION: To promote sustainable national development OBJECTIVE: To design options & promote sustainable development through programmes of  Economic efficiency  Equity & social justice  Environmental harmony  Resource conservation  Self-reliance

FUNCTIONAL STRUCTURE - DA
Development Alternatives Group

Corporate Management Branch (CMB)

Innovation Services Branch (ISB)

Development Services Branch (DSB)

Business Services Branch (BSB)

Communication Services Branch (CSB)

Technology Innovation Group

TARA Livelihood Academy

Technology & Action for Rural Advancement (TARA)

Corporate Positioning Group

Enterprise Incubation Group

Bundelkhand Development Group

TARA Nirman Kendra (TNK)

Knowledge Communications Group

Sustainability Research Group

Community Partnerships Group

TARAhaat Information & Marketing Services Ltd.

Sustainability Policy Group

TARA Technical & Management Services Group

Decentralised Energy Systems India Ltd. (DESI Power)

Objectives:
Objectives of the project To understand the present Scenario of Brick Industry in Bihar. To assess the market potential & business viability for Clay fired bricks in allocated cluster area.

Methodology:
PREPARATORY WORK

PHASE-I

PHASE-II

PHASE-III

SAMPLE DESIGN FIELD WORK

DATA ANALYSIS REPORT WRITING

 UNDERSTANDING THE PROJECT

 QUESTIONNAIRE DESIGN  SURVEY DESIGN

OBSERVATION & PERSONAL INTERVIEW OF KILN OWNER

CONSULTATION WITH REPORTING OFFICER

FINAL REPORT

Sampling:
No. of FC-BTK sample taken for study in Bihar are
District Sample Patna 5 Ara 5 Saharsa Supaul 5 5 Madhepura 5 Katihar 5

The sampling was Cluster sampling for selecting area, namely Cluster1  Patna and Ara

Cluster2  Saharsa, Supaul, Madhepura and Katihar. I have taken convenience (non probability) sampling for collection of primary data.

Indian Brick Sector: Salient features

Solid clay fired bricks

- Second largest brick producer in world

- Annual production 170 billion/year (approx.)

Decentralized unorganized production

- Decentralized production > 120,000 units

- Annual turnover Rs. 500 billion - Employment to 1.20 crore workers

Resource intensive process

- Coal consumption 6 crore tones/year

- Largest consumer of agricultural top soil

The Bihar Brick Sector

Technologies used:
- Predominantly FCK, sporadic instances of HDK, no alternate materials e.g. fly ash

Production:
- No. of brick kilns around 4,500 - Annual production 11 billion (4th. largest in India)

Raw materials:
- Soil and coal

Waste materials used:

- Sporadic use of coal slurry

Quality:
- Good to medium

Mechanization:
- Mechanized pugging, excavation of soil

Results-

Technologies being practiced

Products:
In Bihar, Red bricks is the major brick being practice to make buildings. There is no fly ash brick industry. In rural areas people made adobe houses (low income people made) but it is not at large scale.

Cluster

district Red brick Ara Patna Saharsa Major Major Major Major Major Major

Urban fly ash NA NA NA NA NA NA Adobe NA NA NA Occasional NA Occasional Red brick Major Major Major Major Major Major

Rural Fly ash NA NA NA NA NA NA Adobe Minor Minor Minor Minor Minor Minor

Cluster1

Cluster2

Supaul Katihar Madhepura

Results-

Technologies being practiced

Mechanization:
Bricks:
Dimension (l*b*h) Inch Average Weight (kg)

10*5*3

3.7

JCB:
Company If own then If rent then price(lacks) price/hr 20 800 Capacity trolley/day 100 Service yes Time period (years) 1

JCB

Pug mill:
Name Durga engineering Jamuna engineering Biswash engineering Harnaut engineering Head office Kolkata Patna Kolkata Harnaut Average price 40000 80000 50000 90000 Capacity bricks/day 10000 8500 8000 8000 Service No Yes No Yes Time period year 0 1 0 1

Results-

Technologies being practiced

Districts Ara Patna Saharsa Supaul Katihar Madhepura Pug mill No Yes Yes No Yes Yes Moulding machine No No No No No No Fly ash No No No No No No JCB Yes Yes Yes No Yes Yes

Mechanization:
Cluster Cluster 1

Cluster 2

Source of raw materials

Cluster Cluster 1 District Ara Coal coming from Ghato Dhanbad Jhariya Jhariya Ghato Hazaribag Dhanbad Guwahati Guwahati Guwahati Guwahati Distance 250 350 300 250 200 230 300 516 535 500 591

Patna

Cluster 2

Saharsa Supaul Madhepura Katihar

Results-

Technologies being practiced

Resource use
10%
River bed soil

Agriculture land

90%

Results-

Technologies being practiced

Resource use
River bed soil

10%

Agriculture land

90%

Results-

Economic information

Land particular:
Cluster Average land area for kiln (acre) If land on lease ( lease period) year If lease (acre/month) Rs. Market value of land (lack/acre) Rs.

Cluster 1 Cluster 2

2.6 6.3

6 4

1878 1460

14.6 29.2

Tax:
Mining tax (yearly in Rs.): Urban area mining tax- 72000 Rural area mining tax- 52000 Interior rural area tax- 40000 VAT (yearly in Rs.): Urban area VAT- 80000 Rural area VAT- 60000

Results-

Energy consumption

Trend in coal price:

Trend in coal price
12000 coal cost/MT (Rs.) 10000 8000 6000 4000 2000 0 2007 2008 2009 2010 2011 Ara saharsa supaul katihar madhepura patna

Cluster

Rate /MT

Average for season per kiln (MT)

Average exp per kiln (lakhs)

Cluster1 Cluster2

5800 9500

450 540

26.19 50.08

Results-

Energy consumption
Diesel (litter/ hr) 5 1.5 1

Use of diesel in various technology:

Technology JCB Pug mill Diesel pump for water

Diesel detail
Average diesel exp seasonal/kiln(Rs.)
140000 120000 100000 80000 60000 40000 20000 0 Ara Patna Saharsa Supaul Katihar Madhepura

Average diesel exp. seasonaly

Results-

Energy consumption
Average exp for season/kiln(Rs.)
80000 60000 40000 20000 0 Ara Saharsa Supaul Katihar Madhepura Patna

Fire wood detail:

Total exp for season(Rs.)

energy expense/brick(Rs.):
Particular Coal Average brick production (lakhs) 26.55 Average brick production (lakhs) 26.55 Average brick production (lakhs) 26.55 Energy consumption Coal consumption/kiln Average cost of (MT) coal/ (MT) 525 8,275 Total coal cost (Rs.) 43,44,375 Coal cost/ brick (Rs.) 1.67

Diesel

Diesel consumption/kiln Average cost of Total diesel cost Diesel cost/ brick (Rs.) (litter) diesel/litter (Rs.) 1162 44 51,128 0.02 Fire wood consumption/kiln (MT) 12.3 Total energy cost/brick Average cost of firewood/ (MT) 4,208 Total firewood cost (Rs.) 51,758.4 Fire wood cost/ brick (Rs.) 0.02 1.71

Fire wood

Results-

Environmental issues

Total CO2e emission (kg) per brick from various technologies

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 FCK VSBK FLY ASH

CO2e emission per 1000 bricks (kg) from various sources and tech.:
700 600

500

400

Fixed chimney VSBK Fly ash

300

200

100

0 Soil excavation Raw material transportation Brick making Firing

Results-

Environmental issues

CO2e trading potential per brick from various technologies

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 FCK VSBK FLY ASH

Results-

Environmental issues
Yes 40%

Awareness, willingness and statuary clearance:

No 47%

Yes 53%

No 60%

Awareness about Eco Friendly technology Knowledge about new energy saving technology
Yes 23% Yes 10%

No 77%

No 90%

Willingness to adopt new technology

DIC registration

Results-

Market trends

Annual turn over:

Annual turn over/district (million)
4000 3000 2000 1000 0

Production cost:
Production cost/1000 brick (Rs.)
production cost/1000 brick (Rs.) 4500 4000 3500 3000 2500 2000 2007 2008 2009 2010 2011

Ara saharsa supaul katihar madhepura patna

Results-

Market trends
Selling price/1000 bricks (Rs.)

Trend in selling price:

selling price/1000 brick (Rs.)

6000 5000 Ara 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 saharsa supaul katihar madhepura patna

Trend in profit:
Profit/1000 bricks (Rs.)
profit/1000 bricks (Rs.) 1000 800 600 400 200 0 2007 2008 2009 2010 2011 Ara saharsa supaul katihar madhepura patna

Results-

Labour issue:

Cost of labour

Supe rvisor 10% Unloader 20%

Firing 6%

M oulder 44%

Loader 20%

Parameter: labor cost/brick is Rs. 0.99

Issues and opportunities Technical Absence of alternate technologies

Only FC-BTK

Brick size and shape

Bigger size bricks (10*5*3), solid

Absence of mechanization
Only pug mill, JCB

Issues and opportunities

Technical Use of top soil in brick making
consumes 41,55,000 m3 of clay per year barrens 1026 acres per year retards 1335 T of rice production / year affects 7417 people every year

Issues and opportunities Technology

Small scale brick production Fly ash, VSBK Medium scale brick production VSBK Large scale brick production HK (Holf-man kiln), VSBK

Issues and opportunities Brick size and shape

Use of standard brick size (8*5*3) 20% savings in soil Use of hollow bricks 25-40% savings in soil Use of industrial wastes 5-10% savings in soil

Mechanization
Small scale Pug mills, extruders Medium scale Soft mud moulding machines, extruders

Issues and opportunities

Energy Rising cost of fuel
Average around 10% increase per year Likely to increase each and every year

Scope for low energy technologies

Fly ash technologies Vertical Shaft Brick Kiln

Reducing energy consumption

Use of industrial wastes as internal fuel Energy can save of up to 60% of external coal

Issues and opportunities

Policy
Strong pollution control and mining regime Absence of incentives Absence of subsidies Awareness on cleaner brick production technologies

Recommendation
To reduce the fuel consumption and production cost of brick, should use internal fuel like( Rice husk, fly ash, sugar mill wastage). Eco-kiln technology supplier organization should create a modal in Bihar for inspiring the entrepreneur to adapt the technology. Bihar brick industry is not mechanized so create awareness about various technology which will helpful to reduce the production cost and quality enhancement of brick. Clay brick industry directly affected the agriculture and environment so have to move eco-cleaner technology like fly ash and concrete block brick.