This is a presenatation about Nepalese brick sector prepared in the context of GIZ's Nepaleses Energy Efficiency Programm 2012. It discuss the current status of Nepal's brick industries and related policy issues. Furthermore, it shows what technologies and measure could reduce the energy intensity and environmental impact of this sector.

1. Integrated policy framework and policy
incentives and relevant issues within
Brick sector
Bhishma Pandit
Energy Efficiency Expert
GIZ/Integration/ Energy
Efficiency Centre FNCCI
Nepal Energy Efficiency
Programme
Component No.3, Industrial

2. Firing
technology
transformations
Acknowledgements
FNCSI
FNBA
VSBK Associations
NEEP/GIZ/Integration
FNCCI/Energy Efficiency
Centre

4. Contents
 Key issues within the brick sector
 Focused issues
 General overview and sector intensity
 Clay Brick making process .
 Firing technology
 Policy issues
 Government approach
 Indian experience
 Barriers
 Way forward…..

5. Key issues
 Severe labour shortage
 Fuel. price gone up 100- 175% last five
years.
 Leased land ,disincentives to invest on
modernization- modernization owner have
to buy the land- high land cost – move the
remote location – transportation cost!
 Seasonal business- Weather dependency.
 Skilled Manpower(Firing, stacking) working
within the kilns is 90% Indian
 Fired solid brick, hallow or perforated brick
or compressed brick ????

6. Key issues
 Tax issues - VAT- problems
 Six months business
 Weather dependency – Rain loosing significant losses
 Poor account keeping.
 Quality bricks- it is not fixed , depends on skill of work
 Low income peoples are working, not committed workers
 Unseen cost – donations, local road construction , VDC demand and other
local activities.
 VAT Act 2052- It mentions that there exists a threshold limit for compulsory
registration under VAT Actfor the industries with the turnover of Rs. 2,000,000
over last 12 months or turnover of Rs.
200,000 in any month. All the brick industries basically have turnover of more
than Rs.2,000,000 annually. The existing rate for VAT is 13%.
 Industrial Policy, 2067- Those industries who adopt environment friendly
technology and save energy them self will be provided technical and financial
support
 The Industrial Enterprises Act2049 (1992)Section 15:Sub section After an
industry comes into operation, 10 percent of the gross profit shall be allowed as a
deduction against taxable income on account of expenses related with
technology, product development and efficiency improvement

7. Focused Issues- General
 Technological issues and energy efficiency
issues
 Research and Development issues- Ash from
boilers
 Environmental issues
 Dust
 Emission
 Degradation of Top soil
 Prominent industrial CO2emission within
Nepal
 Social issues- Child worker, educations, child
health

8. Kiln Type VSBK MC-BTK FC-BTK
Forced
Draught,
Zigzag
Stacking
Forced
Draught,
Straight Line
Natural
Draught,
Straight Line
Specific
Energy
Consumption
(MJ/kg of
fired bricks)
0.83 1.25 0.91 0.92 1.16
SPM
Emission
(mg/Nm3)
101 840 116 125 238
Mass
Emission
Load
(kg SPM/1000
bricks)
0.33 8.06 0.87 1.82 2.51
Sources: IEM (2003); IEM (2005);
VSBK is best among all for energy and environmental
performance, It consumes around 30% less coal as
compared with normal Fixed chimney BTK with straight line
firing. ( BTK is talking 12 TON for 1 lakhs brick where as
VSBK consumes 8 TON for same).

9. Coal and production CO2
emission
 Brick production / day /kilns– 40,000 – 60,000 / day
(BTK)- 120 working days minimum.(Source: FNBI)
 4-5 billons bricks/year-(Source: FNBI)
 Coal Consumption/ day/kiln : 4 ton /day (BTK)
– 8 Ton/ day Carbon dioxide emissions
Around total coal consumption in brick sector:
350,000 Tons(source: FNBI)
 Average coal consumption per lakh brick
 8-9 ton for Induced Zig Zag kilns (Improved ) but they
need additional electricity and Diesel for operations.
 12-14 ton for traditional natural draught FCBTKs.
 2 tons coal saving / day/ kilns – 4 tons CO2/ day/
kilns – 150,000 Tons emssion reduction /year for the
sector

10. overview
 Biggest industrial density within Nepal
 Biggest energy user( around 40% is fuel cost
out of total turnover) among production industry
 Traditional business – New entrepreneurs are
coming.
 Unorganized sector as compare with other
industries.
 Traditional account keeping system, Account
keeping is complicated due to unseen cost and
they are not competent as well..
 Most of Manpower is Migratory.
 Person employed : 42003(CBS-2008), 102620
Male, 36830 women(139450)

11. Parameter Value
Number of Registered
Establishments
429( 826 FNBI)- 701 is
operational – 553 fixed , 157
moveable, 85 without
registration, 499 members
Quantity of Bricks Sold 753 million pieces
Value of Sales 2.3 billion Rupees
Persons Employed 42,003( 139450- FNBI)
FNBI source 102620 Male, 36830 women
Value of Output 2.5 billion Rupees
Total Value Added 1.8 billion Rupees
Reference: CBS-2008
Indicators of Nepal’s Brick Sector (Registered Establishments Only)

12. Brick making process
1. Manual – Workers
2. Extruders-
Good but some problems
 Chinese extruders, Motor failures – Power reliability in Nepal
 Load Shedding – DG operation
 Market – looking for handmade bricks
 Opportunity –
 Hallow bricks promotions – less energy, soils
 Uniform size and shape
 High production rate
Drying process
Natural sun drying process , less energy
consumption…
But problem is weather depended
Losses due to rain
Drying land

13. Firing Technology
 Still clamp kilns
 Moveable BTK( Bull Trench Kilns) – out from
this firing seasons
 Fixed chimney BTK
 Induced draught kilns with improved
stacking(Zig-Zag), minimized stack heat
loss- Kathmandu- Electricity – DG are in
operation.
 Natural draught kilns with traditional firing
practices.
 Other BTK- between fixed chimney and
moveable
• VSBK technology

14. CURRENTLY AVAILABLE FIRING TECHNOLOGIES ,
NepalClamp kiln-
Phase out but !!!
For decorative
brick
BTK
(Bulls Trench Kiln)
Phase out But !!!!
Rice husk
kilnsHoffman Kiln-
? Less nos.
Fixed Chimney- Nos. is
rising but
Operating practices,
awareness?
VSBK- 25- 30?
Coal is main source

15. There are non firing bricks
which are being producing
by some of the brick
industries
Total investment :Rs.15,389,500
Ecotech Building System Pvt. Ltd.
Hydraform Brick
Need massive consumer awareness and government
initiations for government building and Government bids
and procurement

16. Number of Registered Kiln under Brick associations : 499(22
district)
other district where there is no associations, is assumed to
be around 826( As per FNBI), 701 operational
68%
19%
10%
3%
Fixed Chimney
(BTKs)
Moveable BTKs
Without
registration
VSBK
Source : FNBI

17. Policy issues
Ministry of Industry(Department of Cottage and Small
Industries, ), Ministry of Environment, Science and technology
, Ministry of Finance, Department of Inland Revenue and
MOLD, VDC,DDC, Municipalities
 Moveable kilns BTKs phased out form year 2012 in Nepal.
 Moveable kilns BTKs phased out form Kathmandu valley in
year 2004.
 Ministry of Environment has stack emission standards but
lack of regular monitoring ???? Local environmental lab!!!
Lack of Equipment
SPM levels for different kilns and chimney height- 40 ft-
VSBK, 17-30 m- BTKs
 There is no such policy regarding surrounding dust
emission and minimum dust level intensity within kilns
area.
 Ministry of Environment, science and technology, Ministry
of local development, Ministry of Finance & Ministry of
Industry , lack of co-ordinations – Registration, HR

18.  Directive to replace all MC-BTK in the country within two
years (by the end of 2011) with modern kilns, where the
category has been defined to include VSBK, FC-BTK, and
Tunnel Kilns(2009)
 (Industrial Promotion Board meeting 15/12/2009, 183Decide
to replace the MBTK within 2 years by VSBK/Fixed
Chimney/Tunnel Kiln. Mandatory to use the VSBK/Fixed
Chimney/Tunnel Kiln for new registration, compulsory)
 Need major policy intervention since highest no. of industry
in Nepal– Industrial Act- 2049 – Dhafa – 5 and 3 kha –
production Industry .
 Firing technology should not have any issues within the
policy- VSBK, BTKs , tunnel and others (Some may not need
firing process)
 Registration /licensing / licensing Renewable process
issues within Department of Cottage and small scale
industries- policy reform required in IEE, incentive
recommendations, human resource development and
training for capacity building .
Policy issues

19. Policy/Budget/oth
ers
Statement Policy statement
The Industrial
Enterprises Act 2049 (
1992)
Section 15: Sub-section
K
granted for a
reduction of up to 50
percent from the
taxable income for
the investment of any
industry on process
or equipment, which
has objective of
controlling pollution.
Fiscal Year Budget
2002/04, 219
Excise license fee will be
waived to industries, which
adopt modern technology
and meet the environmental
standard. Excise duty on
brick factories, which do not
meet environmental
standard and pollute the
atmosphere, has been
doubled from Rs. 100,000 to
Rs. 200,000.
The Industrial
Enterprises Act 2049
(1992)
Section 16: Sub-section
N
Efficiency
improvement Industrial
Promotion Board
meeting
15/12/2009, 183
Decide to replace the MBTK
within 2 years by VSBK/Fixed
Chimney/Tunnel Kiln.
Mandatory to use the
VSBK/Fixed Chimney/Tunnel
Kiln for new registration,
compulsory.
Industrial Policy,2067
Those industrial
who adopt
environment
friendly technology
and save energy
them self will be
provided technical
Board meeting Decided to extend
the period for
documenting the
replacement of
MCBTKs year till
to Magh End of
2069

20. Government approach
 Government procurement – Hallow bricks? Perforated bricks?
Unfired and compressed brick , brick sizing, unfired bricks,
compressed bricks- Market.
 Technological transformation: Bridging with funding agencies,
environmental groups and private sector
 Tax awareness and training within the sector and should
understand practical barriers
 Energy & Emission monitoring and tax incentives
 Technology transformation should be by government bodies.
 Social aspects like Formal education school, child healths within
kilns area and cooperation with brick associations and Brick
industry owner
Planned relocation of brick industry
clusters:
Technology transfer and
dissemination:
Skill development
Financing
Advocate for policy change.
holistic
approach

21. Funding agency!!
 World Bank did one round table discussion with
brick stakeholders- Policy , financing and
stepwise approach is key, new technology need
support
 SCP
 ESPS/DANIDA
 SDC- VSBK programme.
 Kfw
 CO2 Emission- CDM project

22. Indian and regional experience
 A paper on “ A road map for cleaner brick
production in India”- green tech knowledge
solutions, Entech Switzerland, ENZEN, Clean air
task force .for government of india
Recommendations
 The FCBTKs and DDKs should be replaced by
zigzag,
VSBK or other cleaner kiln technologies by 2020.
 Zig-zag kilns are the logical replacement for
FCBTKs, because of low capital investment, easy
integration into the existing production process, and
possibility of retrofitting FCBTKs into Zig-Zag firing.
The Zig-Zag kiln performance strongly depends on
the kiln operation practices; also, Zig-Zag natural
draught kilns appear toper form better than Zig-Zag
forced draught kilns.

23.  VSBK appears to have a limited market, mainly
because of its inability to produce good quality
bricks from all types of clays and its low
productivity under Indian conditions. Incorporation
of features of Vietnamese VSBKs into Indian
VSBKs may help in improving the VSBK
technology package. VSBK dissemination needs
to be properly targeted.
 The tunnel kiln technology is capital
intensive, and the current technological know how
and experience is limited in India. Adoption of the
tunnel kiln also requires extensive modifications
in brick moulding, drying and material handling.

24. Way-forward
• Demonstration Programs for improved
energy performance and environmental
friendly and production friendly
technology(BTKs)
• Stacking training for Nepalese
•Firing training for Nepalese
• More Trainings & Awareness Programs from
government bodies
•Policy reformation and implementation of
incentives guided by different policies
• Monitoring Regulatory Impacts
•Government initiations on government
procurements
• Consumer Awareness Programs

25. Thank you
bpandit@integration.or
g
9801088900