2. Abstract
Through this report we will try to cover both environmental as well as the economic aspect of foundries
in India. We will discuss, using the triple bottom line framework, what is the scope of foundries in India?
How Make in India campaign will change the scenario for foundries in India? What all are the negative
externalities associated with foundries? And what are the recommendations to minimize the negative
externalities without hampering the growth of Indian economy.
Introduction
Liberalization of Indian economy post 1991 led to starting up of a lot of industries in India. A lot of
economic reforms started taking places and a number of trade restrictions were opened up, thus
creating a chance for lot of Indian entrepreneurs to start up their own manufacturing plants. In the
process, a large number of manufacturing units started opening up in India. Manufacturing is a
backbone of any economy and so countries tries to spend as much money as they can to boost up the
manufacturing process. Foundry is the mother of all manufacturing process. A foundry can be defined as
a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid,
pouring the metal in a mold, and removing the mold material or casting after the metal has solidified as
it cools. Outputs of foundries are very important for machine building industries. Foundry industry
provide input to sectors such as Automobiles and Auto components, Railways , Power sector, Tractor
industry, Earth moving machinery, Engineering exports etc. Almost thirty two percent of the foundry
output goes to automobile industry. Since, foundries are labor intensive industries and labor cost is very
high, developed countries try to outsource these products from the developing nations. Small scale
foundries, in general, provides jobs, mostly, to the unorganized sector of the society. Since metal casting
process is very well defined it does not require much of the skills and labor can be easily trained. In India
there are more than ten thousand such small scale foundries providing jobs, indirectly, to almost 1.5
million people.
Earlier China used to me the leader when it comes to manufacturing. They started manufacturing and
export led growth almost three decades ago. They had an advantage of demographic dividend, huge
labor supply. Labor were willing to work for the wages which were far below industrial average.
However, China has almost reached its saturation point, wherein people have stopped migrating from
rural areas to urban areas in search of job and also with a lot of labor union strikes, wages keeps on
increasing, making the very advantage that china used to enjoy coming to an end. However, with china
reaching its saturation point, eyes are set on India because India now has an advantage of demographic
dividend, cheap labor force and a large number of rural population migrating to urban areas. India,
having cheap labor, is among the top ten metal casters in the world. Labor cost in India is reasonably
low.
The growth of foundry industry is very important for inclusive growth, other engineering sectors and the
overall Indian economy. The Indian metal casting industry is very well established. Make in India
campaign launched by Prime Minister Calls for opening up of a lot many new manufacturing industries
in India. IIF president K Samaraj said, "Make in India initiative is expected to double the contribution of
manufacturing industry to the country's economy. To realize this, the foundry industry should grow at
least three times from the present levels. Hence, we have selected the theme 'nurturing
3. manufacturing”. According to the 48th
Census of world casting production India stood India stood third
in the top casting producers, where China being first and United States being second. Belgaum,
Coimbatore, Batala and Jalandhar, Rajkot and Kohlapur are the foundry clusters in India. India, being
rich in labor supply as well resources, is expected to grow its manufacturing industries in the coming
years and so will the foundry sector grow along with it. Though, this may create jobs for the unorganized
sectors problem still lies in the small scale foundries where the workers work in below the industry
standards working conditions. Also, there almost no rules governing the Environment, Health and safety
for foundries in India. Being labor intensive with very low labor cost is although good for the economy,
question still remains whether labor working conditions should be comprised for the sake of growth.
Research Methodology
The research methodology consisted of collection on primary data that was acquired by visiting Sunrise
Foundry in Amritsar. Photos and videos of the foundry were taken to record the working environment
and the owner was interview regarding the same. Secondary data was collected from various websites
mentioned in references that gave information of foundries in India and their impacts.
Framework:
We have analyzed the project under Triple bottom lime framework. Triple bottom line framework
broadly talks about economic, environmental as well as the social aspect of any project. Through this
project we have analyzed what are the environmental impact of foundries? How it helps in growth of an
economy? And what are its social impact on the society?
Air pollution and its property rights
In Latin we say Cuius est solum eius est usque ad caelum et ad inferos. It means "For whoever owns the
soil, it is theirs up to Heaven and down to Hell." If you were the owner of land in Rome in the 13th
century, you would have owned the land till the earth’s center and the air till the sky ends. But that’s no
more the case. When man began to fly in airplanes in the 20th
century, issues arose over whose land it is
flying over. It turns out you no longer own the sky above your land. Your property rights are restricted.
So when a nearby factory blows its fumes over your head, you don’t get much help to curb down the
pollution.
Pollution in usually evaluated on the basis on nuisance and damage to property. This means that as long
as there is no tangible damage to property, it is difficult to evaluate the negative externalities that any
foundry would cause. Discoloring of walls or the degradation of monuments and other buildings caused
due to acid rain(mixture of sulphur and nitrous oxides in rain water) can be easily perceived. However,
other health hazards causes in humans due to the particulate dust released by the molding welding and
other operations performed on metals can become difficult to measure and hence the social cost cannot
be counted.
So if property right is not well established and the negative externalities become difficult to measure,
unchecked growth of air pollution would take place and government might not be able to leave tolls on
the factories.
4. Roughly 72% to 75% of air pollution is due to our industries. With the boost in the manufacturing sector
in the country, it would be a challenge to maintain air quality along with burning metals. More than
10,000 foundries in the country operate with no legal limitations to the pollution they create. The
particulate matter generated by these factories is leading to deaths and degradation of the
environment.
What is particulate dust?
Particulate dust or particulate matter refer to liquid matter or microscopic solids that is measured in
micron and is suspended in the Earth’s atmosphere. These consist of dust, dirt, soot, smoke or liquid
droplets containing burned carbons or other acids. The usual size of particulate dust range from 1
micron to 10 micron.
They can be further characterized in two sets. One is Suspended particulate matter PM10 which are of
size less than 10 micron. However the most hazards are the particulate matter of the size less than 2.5
micron. These are called Respiratory Suspended Particulate Matter PM2.5 and they are so small that the
human nose cannot filter such particles. They directly reach the human lungs and deteriorate health.
Such particulate dust are usually formed during preparation of molds, pouring of metals into furnaces,
emptying and cleaning of molds and loading and unloading of raw materials.
Negative Externalities of Foundries
Effects on Human Beings
The primary sufferers are the workers. Due to ill monitoring in India, a lot of employees work under
toxic condition without proper masks, gloves and other equipment. Most common diseases are black
lung disease that is caused due to breathing of coal mine dust which leads to decreased lung function.
Other diseases are asthma, heart attacks, irregular heartbeat, premature deaths along with metal fume
fever caused due to manganese and zinc oxides released during welding and cutting of metals. In the
female workers, diseases such as increased risk of vascular diseases and lung cancer are more often
found after the post menopause stage.
Other diseases that can affect the people residing or operating in the locality of the foundries are
silicosis, which is scarring of connective tissues in lung caused due to breathing of silica. Along with
pneumoconiosis, inflammation of lungs, fatigue, dehydration and mercury poisoning.
Other effects can be of odor pollution. Some of the common gases such as ammonia and hydrogen
sulphide even when relapsed in small quantity spread out to vast areas quickly and hurt the aesthetics
of the locality.
Effects on Locality and Vegetation
Coarse solid particles carried by fumes give rise to oxides that form the acid rain which physically
corrode buildings. Apart from that the market price of properties around such foundries also goes down
due to being situated near unpleasant environment filled with chemical releases. Agriculture land
suffers as the fertility of soil goes down. Lead and mercury content can be absorbed by the soil and
enter the food chain via the crops grown in the area. This can further affect the humans and other
5. species. As the fertility of soil and the quality of output drops, the economic value of the agriculture
lands begins to fall.
Poisoning of soil due to seepage and stream pollution occurring due to releases in water bodies also
contributes heavily to the negative externalities. The metals once molded needs to be washed and the
mold need to be cleaned for further use. To save cost many producers use the same water over and
over instead of fresh water and when the water becomes too polluted to help in cleaning, it is released
in nearby water bodies affecting the aquatic life.
Recommendations for Foundries in Amritsar
In Indian foundries, various processes are used for molding, melting and casting of the scrap. These are
accompanied by excessive heat, noise, dust, fumes and gases. There are various emissions and
pollutants from various work areas in a foundry are explained as under:
• Pattern shop
• Sand preparation section
• Molding and core making section
• Metal furnaces
• Knockout section
• Fettling shop
• Heat treatment furnace
There are generally two primary collection mechanisms for foundry particulates, wet and dry. Wet
scrubbers are low- and high-energy types. Dry collection includes bughouses, mechanical and
electrostatic precipitators. In addition, to control emissions of organic compounds, incineration or
afterburners are mainly required. Air toxics merit special consideration, requiring careful selection of the
emission control method.
Methods to prevent Air Pollution from foundries
1. WET SCRUBBERS
For collection of particles, the mechanisms used in a wet collector are inertial and direct interception.
These are used either separately or in combination. In studying wet collector performance, separate
investigators developed the contact power theory, which says that, for an extremely engineered
designed wet-scrubber, collector efficiency is a function of the energy consumed in the air-to-water
contact process and is separate of the collector design.
2. DRY COLLECTORS
The most frequently used way for the removal of solid particles from an air stream is the bag house.
With a mass median size of 0.5 µm, an efficiency of 98-99+% can be achieved. When the filter
6. medium becomes coated in a fabric collector, the collection efficiency rises. However, as material
settles on the bag surface, higher pressure drops occur, which result in drastic reduction in airflow.
3. FILTER
Filters re very important for removing the particulate matter from gas or air streams by holding it in
or on the foam structure through which gas flows. The foam structure is usually a woven fabric. The
filter must be periodically cleaned or replaced. Filters are commonly employed in pattern shops on
multiples wood working equipment. They are also used on cupola collection systems in addition with
equipment like after burners, gas coolers and exhaust blowers.
4. CYCLONES
The cyclone works on the principle of centrifugal collection in which a vortex motion of the particles
are created within the collector. This motion provides the centrifugal force which propels the
particles to the location from where they must be removed. Besides, they may either deposit the
matter in a hopper.
Methods to prevent Labors from health Hazards caused in Foundries
The foundry process generates noise from various processes, including scrap handling, furnace charging,
fuel burners, shakeout and mold shooting, ventilation equipment. Suggested noise management
techniques include the following:
• Enclose the procedure buildings and insulate them on priority.
• Cover and enclose scrap storage and handling sectors.
• Enclose fans, insulate ventilation pipes and use damper.
Exposure over several years in foundries can cause to the development of the complaint known as
silicosis. This is a form of wound tissue in the air exchange region of the lungs that causing to difficulties
in oxygen uptake into the blood vessels. Addition to that, new evidence suggests that long term
exposure to silica will increase the risk of lung cancer.
The following steps must be taken to prevent the exposure of silica to the workers:
Measuring operative exposure to hazardous substances including reparable sand and silica levels
and to guarantee levels are not above allowable workplace exposure limits values.
Recommendation of further control measures to be put in place in directive to reduce the risk of ill
health to employees plus selection of proper PPE.
7. Reflection of working practices and endorsements to ensure obligations in reducing exposure to as
low as is reasonably practicable.
Valuation of noise levels within the foundry and provision of expert advice on appropriate hearing
protection for workers as well as advice on decrease of exposure.
Provision of standard spirometry and audiometry analysis services and provision of
recommendations to occupational sterility specialists.
Aid with the measurement of trembling levels and the associated administration.
Provision of health & safety plans and risk valuations of the foundry processes and working with the
site administration to ensure legislative passivity.
Testing of any abstraction systems and compressed air feeds to ensure legislative compliance.