detailed project report on technology up …...vsbk vertical shaft brick kiln sidbi small industries...

DETAILED PROJECT REPORT

ON

TECHNOLOGY UP GRADATION FROM STRAIGHT

LINE TO ZIGZAG FIRING

(VARANASI BRICK CLUSTER)

Bureau of Energy Efficiency

Prepared By

Reviewed By

TECHNOLOGY UPGRADATION

FROM STRAIGHT LINE TO ZIGZAG FIRING

VARANASI BRICK CLUSTER

BEE, 2010

Detailed Project Report on Technology Upgradation from Straight Line to Zigzag Firing

Brick SME Cluster, Varanasi, Uttar Pradesh (India)

New Delhi: Bureau of Energy Efficiency;

Detail Project Report No.: VRN/BRK/ZIG/01

For more information

Bureau of Energy Efficiency (BEE)

(Ministry of Power, Government of India)

4th Floor, Sewa Bhawan

R. K. Puram, New Delhi – 110066

Telephone +91-11-26179699

Fax +91-11-26178352

Websites: www.bee-india.nic.in

Acknowledgement

We sincerely appreciate the efforts of industry, energy auditors, equipment manufacturers,

technology providers, consultants and other experts in the area of energy conservation for

joining hands with Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India

for preparing the Detailed Project Report (DPR) under BEE SME Program in SMEs clusters. We

appreciate the support of suppliers/vendors for providing the adoptable energy efficient

equipments/technical details to the SMEs.

We have received very encouraging feedback for the BEE SME Program in various SME

Clusters. Therefore, it was decided to bring out the DPR for the benefits of SMEs. We sincerely

thank the officials of BEE, Executing Agencies and ISTSL for all the support and cooperation

extended for preparation of the DPR. We gracefully acknowledge the diligent efforts and

commitments of all those who have contributed in preparation of the DPR.

Contents

List of Annexure v

List of Figures v

List of Tables vi

List of Abbreviation vii

Executive summary viii

About BEE’S SME program ix

1 INTRODUCTION ............................................................................................................... 1

1.1 Brief Introduction about Cluster ................................................................................. 1

1.2 Energy performance in existing situation ................................................................... 3

1.2.1 Fuel and electricity consumption ............................................................................... 3

1.2.2 Average production ................................................................................................... 3

1.2.3 Specific fuel Consumption ......................................................................................... 4

1.3 Identification of technology/equipment ....................................................................... 4

1.3.1 Description of technology/equipment......................................................................... 4

1.3.2 Role in process ......................................................................................................... 5

1.4 Benchmarking for existing specific energy consumption ............................................ 5

1.4.1 Design and operating parameters /specification ........................................................ 5

1.4.2 Operating efficiency analysis ..................................................................................... 6

1.4.3 Specific fuel and electricity consumption………………………………………………….7

1.5 Barriers in adoption of proposed technology/technology ............................................ 7

1.5.1 Technological Barrier ................................................................................................ 7

1.5.2 Financial Barrier ........................................................................................................ 7

1.5.3 Manpower Skilled ...................................................................................................... 8

1.5.4 Other barrier (If any) .................................................................................................. 8

2 PROPOSED OPTION FOR ENERGY EFFICIENCY IMPROVEMENTS ............................ 9

2.1 Detailed description of technology selected ............................................................... 9

2.1.1 Description of technology .......................................................................................... 9

2.1.2 Technology specification ........................................................................................... 9

2.1.3 Suitability or integration with existing process ......................................................... 10

2.1.4 Superiority over existing technology ........................................................................ 10

2.1.5 Availability of technology ......................................................................................... 10

2.1.6 Source of technology .............................................................................................. 11

2.1.7 Service/technology providers .................................................................................. 11

2.1.8 Terms and conditions in sales ................................................................................ 11

2.1.9 Process down time during implementation .............................................................. 11

2.2 Life cycle assessment and risks analysis ................................................................ 11

2.3 Suitable Unit for Implementation of Proposed Technology ...................................... 11

3 ECONOMIC BENEFITS FROM NEW ENERGY EFFICIENT TECHNOLOGY ................. 12

3.1 Technical benefit ..................................................................................................... 12

3.1.1 Fuel saving.............................................................................................................. 12

3.1.2 Improvement in product quality ............................................................................... 12

3.1.3 Increase in production ............................................................................................. 12

3.1.4 Reduction in raw material consumption ................................................................... 12

3.1.5 Reduction in other losses ........................................................................................ 12

3.2 Monetary benefits .................................................................................................... 13

3.2.1 Monetary savings due to reduction in energy consumption………………………………13

3.3 Social benefits ......................................................................................................... 13

3.3.1 Improvement in working environment ...................................................................... 13

3.3.2 Improvement in skill ................................................................................................ 13

3.4 Environmental benefits ............................................................................................ 13

3.4.1 Reduction in effluent generation .............................................................................. 14

3.4.2 Reduction in GHG emission .................................................................................... 14

3.4.3 Reduction in other emissions like SOX .................................................................... 14

4 IMPLEMENTATION OF NEW ENERGY EFFICIENT TECHNOLOGY ............................. 15

4.1 Cost of technology implementation .......................................................................... 15

4.1.1 Cost of technology .................................................................................................. 15

4.1.2 other cost ................................................................................................................ 15

4.2 Arrangements of funds ............................................................................................ 15

4.3 Financial indicators .................................................................................................. 17

4.3.1 Cash flow analysis .................................................................................................. 17

4.3.2 Simple payback period ............................................................................................ 17

4.3.3 Net Present Value (NPV) ........................................................................................ 17

4.3.4 Internal rate of return (IRR) ..................................................................................... 17

4.3.5 Return on investment (ROI) .................................................................................... 17

4.4 Sensitivity analysis .................................................................................................. 17

4.5 Procurement and implementation schedule............................................................. 18

v

List of Annexure

Annexure – 1: Energy audit reports used for establishing ....................................................... 19

Annexure – 2: Process flow diagram ....................................................................................... 33

Annexure – 3: Detailed technology assessment report............................................................ 34

Annexure – 4: Drawings for proposed civil works required for implementing new

technology/equipment ...................................................................................... 35

Annexure – 5: Detailed financial calculations & analysis for financial indicators ...................... 36

Annexure – 7: Details of technology/equipment and service providers .................................... 42

Annexure – 8: Quotations or Techno-commercial bids for new technology/equipment ............ 43

List of Figures

Figure 1: Process flow chart of typical brick kiln process ........................................................... 1

Figure 2: Typical structure of BTK ............................................................................................. 5

Figure 3: Energy auditing methodology ..................................................................................... 6

Figure 4: Zig-zag technology ..................................................................................................... 9

Figure 5: implementation schedule .......................................................................................... 18

Figure 6: Process flow of brick manufacturing ......................................................................... 33

Figure 7: Schematics of Double Zigzag Firing ......................................................................... 34

Figure 8: Proposed technology drawings ................................................................................ 35

List of Tables

Table 1: Fuel consumption per year ........................................................................................ 10

Table 2: Specific Energy Consumption ...................................................................................... 10

Table 3: Coal savings per year ................................................................................................ 12

Table 4: Cost of equipment ..................................................................................................... 15

Table 5: Cost of civil work and consultancy ............................................................................. 15

Table 6: Financial parameters ................................................................................................. 16

Table 7 Financial indicator of proposed technology ................................................................. 17

Table 8: Sensitivity analysis .................................................................................................... 18

Table – 9 Energy audit number 1 ............................................................................................ 19

Table – 10 Energy audit number 2 .......................................................................................... 19








Table – 18 Energy audit number 10 ........................................................................................ 24











Table – 29Energy audit number 21 ......................................................................................... 31


List of Abbreviations

BEE Bureau of Energy Efficiency

SME Small & Medium Enterprise

BTK Bull’s Trench kiln

VSBK Vertical Shaft Brick Kiln

SIDBI Small Industries Development Bank of India

EXECUTIVE SUMMARY

Bureau of Energy Efficiency (BEE) appointed Feedback Ventures Private Limited as the

executing agency for brick cluster of Varanasi under BEE’s SME programme. Under this project,

the executing agency carried out studies in the brick cluster of Varanasi. Out of a total of 229

brick kilns, study was conducted in 67 units. Preliminary audits were done in all the 67 units

whereas detailed energy audits were conducted in 22 of these units.

Based on the energy audits, the executing agency submitted their report to BEE in form of a

cluster manual with recommendations for energy conservation & savings potentials in the brick

sector. The recommendations made in the cluster manual are listed below:

• Process Change from straight line to Zigzag Firing

• Best Practices in Coal Charging/ Feeding

• Induced Draft Fan

• Vertical Shaft Brick Kiln

• Hoffman Kiln

• Manufacture of Perforated Bricks

The total investment, debt equity ratio for financing the project, monetary savings, Internal rate of

return (IRR), Net present value (NPV),Debt service coverage ratio (DSCR) Return on investment

(ROI) etc for implementing energy efficient project are furnished in Table below

S.No Particular Unit Value

1 Project cost ` (in Lakh) 7.22

2 Coal saving Tonne/year 139.5

3 Monetary benefit ` (in Lakh) 6.98

4 Debit equity ratio Ratio 3:1

5 Simple payback period years 1.03

6 NPV in 3 years @ 10.00% ` (in Lakh) 12.29

7 IRR % 72.88

8 ROI % 35.99

9 DSCR Ratio 4.17

10 Procurement and implementation schedule Week 22

ABOUT BEE’S SME PROGRAM

The mission of the SME Programme is to improve the overall energy efficiency of Small and

Medium Enterprises. In quantitative terms, there is a general lack of record keeping with respect

to energy consumption and energy saving opportunities within these Industries. The BEE’s SME

Programme intends to enhance the energy efficiency awareness by funding/subsidizing need

based studies in SME clusters and giving energy conservation recommendations. For

addressing the specific problems of these SMEs and enhancing energy efficiency in the

clusters, BEE will be focusing on energy efficiency, energy conservation and technology up

gradation through studies and pilot projects in these SME clusters.

The SME program also intends to undertake capacity building of local service providers and

entrepreneurs/ managers of these SMEs in order to train them for setting up the energy efficient

projects.

Technology Up gradation from Straight Line to Zigzag Firing

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1 INTRODUCTION OF THE EXISTING SITUATION

1.1 Brief about the SME cluster

About SME cluster

The Brick cluster selected under BEE’s SME programme is located in Varanasi district. In

Varanasi brick cluster, there are approximately 226 (Two hundred and twenty six)

registered brick kilns operation within the greater Varanasi district. Out of these around

40% units are either closed or not in operation. These brick kilns have been classified into

following clusters within the district:

• Haruhua • Munari

• Sarnath • Rameshwar

• Sindhora Road • Badagaon

• Rohania

Existing production process and technology

Although there are many brick production technologies existent but almost all the brick

kilns in entire Varanasi cluster are of the traditional coal fired fixed chimney Bull’s Trench

Kilns (BTK) type, with fixed natural draft chimneys except a few kilns which are operating

using induced draft fans for better airflow in the firing/ cooling zone.

Brick Production Process

While the principles of brick manufacture in BTK’s is fairly consistent, individual units may

and sometimes do depart from these basics to fit their particular requirements, raw

materials and mode of operations. The essential steps in brick making are shown in the

diagram below.

Figure 1: Process flow chart of typical brick kiln process

The first three steps of the brick making process usually start around about 20-40 days

before the actual firing of the kiln. This is done to build up a decent stockpile of dried green

bricks for continuous operation of the brick kiln. The firing up process of the brick kiln

takes 10-20 days to make the kiln reach its appropriate temperature for the bricks to


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solidify and acquire its pre requisite fired brick attributes. The entire process is continual

and once the firing is initiated, very rarely is the kiln operation course halted.

Clay Winning and Soil preparation

Clay is usually dug from the local vicinity of the brick kiln. The clay is then processed as to

be free from gravel, lime and other bio wastes/ matter. This soil once excavated is then

watered and left over a period of 8 – 12 hours for weathering and processing. After aging

the moistened soil is kneaded/ pugged as required.

Moulding / Brick formation

The Plastic clay after been through the previous process is then moulded into the required

brick shape and size with its makers mark using a metal/ wooden / PVC mould.

Brick Drying

Once the clay has been formed into the pre required green brick shape, it is then left out in

the sun to dry and reduce its moisture content. Fast drying on extremely hot days may

lead to creation of cracks in the green brick which is undesirable. Therefore to minimize

crack creation and quick moisture loss, the drying process takes place over a period of 8 -

12 days with the bricks left out in the Sun. The bricks are usually laid out in stacks with a

horizontal vertical alignment as to maximize usage of space and Sun light.

Firing and cooling

The firing and cooling is done in the Bull’s Trench Kiln (BTK). Relative to combustion

zone within the kiln, the trench can be divided into cooling, firing and pre heating zones.

The cooling zone is the upstream region in which the fired brick extraction takes place.

This area is also vital in the mechanics of the brick kiln functionality as it allows cool air to

flow into the combustion zone. The cool air while flowing through the fired brick

arrangement cools the brick arrangement while at the same time gaining heat from the

previous lines of fired bricks.

The combustion zone is the area where the firing of bricks takes place. To achieve the

desired/ required properties of fired bricks the green bricks in this zone are subjected to

temperatures of 800 – 1080 degree Celsius. Holes are made in lines on the top layer of

the brick arrangement through which coal is fed in regular intervals into the combustion

zone. To minimize heat losses during feeding, these holes are covered with metallic lids.

Coal feeding of a line within the combustion zone may take anywhere from 3 to 6 hours

depending on the draft and temperature of the Pre heating line.

The pre-heating zone is located downstream to the combustion zone. Sufficiently dried

green bricks are brought over from the Pathai (brick moulding area) and systematically


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stacked within this zone. This stacking arrangement is then covered with a top layer of fly

ash (3 – 6 inches) to offer insulation and minimize heat losses. The hot air/gases coming

from the combustion zone flow through these lines of bricks further reducing their moisture

and heating these bricks. A hole connected to the chimney is opened at a suitable

location downstream to allow for maximum heating of bricks in the pre heat zone before it

is discharged through the chimney. The difference in temperature between the hot air in

the chimney and the cold ambient air creates a draft which sucks in air from the cooling

zone.

Brick Extraction

The extraction of bricks takes place in the beyond the cooling zone of the brick kiln. As the

brick firing and cooling is a continuous process the brick discharge takes place daily in

tandem with the position of the firing/cooling of the lines.

Energy usage pattern

Bull’s Trench Kiln is the only technology existent in the Varanasi brick cluster and coal is

the main source of energy in this kind of technology. Majority of these kilns are using only

coal as fuel however a few kilns are also using sawdust/ wood along with coal for firing of

bricks. The consumption of other fuels is negligible as compared to the overall

consumption of coal in the operation and energy usage of kilns in this cluster. Most of

these units use a combination of coal types depending upon its availability and market

price.

1.2 Energy performance in existing situation

1.2.1 Fuel and electricity consumption

The main fuel used for energy in brick industry is Coal. A few units within the cluster also

use sawdust/ wood along with coal for the firing of bricks. However the energy usage of

these fuel sources is negligible as compared to the overall consumption of coal in the

operation and energy usage in brick kilns. Electricity is not used in the brick making

process, although it is used for lighting purpose in the night in a few units. A typical unit in

this cluster consumes approximately 558 tonne of Coal annually.

1.2.2 Average production

The brick production in a typical kiln depends upon firstly the size of the brick kiln and

secondly the number of rounds completed within the season. The brick industry operates

for around 7-8 months in a year (November to May) but it is highly dependent on the

weather conditions. Cloudy or rainy conditions interrupt the process of brick making. On

an average a typical unit in this Varanasi brick cluster produces 31 lakh bricks per annum.


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1.2.3 Specific fuel consumption

Typically the energy consumption of brick manufacturing units is presented in terms of

tons of fuel consumed for firing one lakh bricks. This method of representation however is

inaccurate in comparing the performance of brick kilns as:

It does not account for the varying range of fired brick weight between units in the cluster

Does not account for the difference in weight/dimensions of half bricks and full bricks

It does not account for the quality/source of coal being used for the firing of bricks.

Therefore by calculating the specific energy consumption required for firing of one

kilogram of fired brick, the performance and energy consumption of the brick kilns within

the cluster can be accurately documented using this approach. The Specific Energy

Consumption in this cluster is 1.1 to 1.5 MJ/kg of fired brick.

1.3 Identification of technology/equipment

The existing technology being used in this cluster is mainly the traditional coal fired fixed

chimney Bull’s Trench Kilns (BTK), with fixed natural draft chimneys. This main reason for

the need of technology up gradation is that the existing technology a high coal consuming

process. As per the results of the energy audits done in the cluster, a typical BTK

consumes around 18 Tones of coal for producing one lakh of bricks, which is very high

compared to the other technology available.

1.3.1 Description of technology/equipment

A BTK is an oval or circular shaped brick kiln with its chimney usually in the centre. The

trench is connected to the chimney by means of evenly spaced chambers along the

trench. The outer wall has exit points for loading & Unloading of bricks. The firing &

cooling process in a BTK comprises of three zones: i) Pre-heating zone, ii) firing/

combustion zone, iii) cooling zone.

Pre-heating zone is the area which is stacked with green bricks and utilizes the hot air

coming from the firing zone for drying the green bricks by absorbing the moisture present

in it.

Firing zone is the actual area where the firing takes place. In a straight line firing process,

bricks are fired one line at a time at a temperature of around 9000C - 10000C. The

temperature is maintained by continuous feeding of coal at regular intervals until the bricks

get ready. Once one line of brick is ready, its holes are closed and the firing is moved

forward to the next line towards the pre-heating zone.

Cooling zone is the area where the firing has already taken place and the bricks are kept

for cooling before they are unloaded from the kiln. Since bricks are fired at a very high

temperature, they take few days to cool down. Cooling time is lesser in the winter season

compared to the summers due to the difference in the ambient temperature.


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1.3.2 Role in process

The Combustion zone is the area where firing of bricks takes place. To achieve the

desired properties of fired bricks the green bricks in this zone are heated at a temperature

between 800 to 1000 0C. Holes are made in lines on the top layer of the brick arrangement

through which coal is fed in regular intervals into the combustion zone. To minimize heat

losses during feeding, these holes are covered with metallic lids. Coal feeding of a line

within the combustion zone may take anywhere from 3 to 6 hours depending on the draft

and temperature of the Pre heating line.

1.4 Benchmarking for existing specific energy consumption

The baseline data has been established based in the energy audits conducted in a total

number of 69 brick kilns out of which 47 were preliminary audits and 22 were detailed

audits. These units were identified after conducting a meeting in November 2009 with the

brick kilns owners with the cooperation of Int Nirmata Parishad, the local brick makers

association in Varanasi.

1.4.1 Design and operating parameters /specification

BTK has a circular or oval kiln circuit. The bricks to be fired are arranged in column

setting. The fire is progressively moved round the kiln through the brick setting. Before

entering the brick-firing zone, the air is preheated by exchanging heat with hot-fired bricks

in the brick-cooling zone. Brick firing takes place in a narrow brick-firing zone; in which,

coal is added manually from the holes provided in the roof of the kiln. The combustion

products (hot flue gases) pass over the green bricks resulting in drying and preheating of

bricks in the brick-preheating zone. The fire travel takes place in the direction of the

airflow. Cooled fired bricks are removed from the brick cooling zone, while fresh green

bricks are added in front of the brick preheating zone. A chimney stack provides the

necessary draft. The below figure depicts the structure of a BTK.

Figure 2: Typical structure of BTK


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1.4.2 Operating efficiency analysis

To determine the Energy use and technical study, individual units were identified within

different clusters in Varanasi district. It is integral to target different clusters as it accounts

for deviations in soil properties, sourcing of raw materials, fuel, and variations in

manufacturing and housekeeping operations. The overall step by step methodology

followed for Energy use and technical study is shown in Figure 3 below:

Figure 3: Energy auditing methodology

Preliminary energy study

The preliminary study is the first stage in conducting an energy and technology

assessment of the brick manufacturing units in the cluster. The aim of the preliminary

study is collecting information relating to kiln operating and energy use to get an overview

of energy sources, raw materials, processes involved, etc of the units within the cluster.

Preliminary energy studies were conducted at 47 brick manufacturing units in the Varanasi

cluster and the time taken for each study was 45 - 90 minutes.

Detailed energy study

Detailed energy studies are conducted to get an in depth break up of energy usage of

each of the associated processes in the operation of brick kilns. It covers the

quintessential steps in preliminary study and provides a thorough analysis of the kiln

functioning. Since coal is the main source of fuel used, there are some guidelines which

need to be maintained while analyzing and measuring the coal consumption of the unit.

Location of Combustion zone

The combustion/ firing zone should be in/along the straight position. If the fire is in the

curved portion of the kiln the rate of fire travel is higher and therefore it adversely affects

the accuracy of the results.

Regular loading of kiln during the study period


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Ensure that the kiln has sufficient quantity of dry bricks (either already loaded or available

for loading) and labor for loading of the kiln during the course of the trials.

Weekly off-day should not fall during the Study duration

The kiln firing operation is a continuous process, taking place 24 hours, 7 days a week.

The associated loading / unloading, moulding process workers are given a weekly day off.

It is necessary to ensure the weekly off day does not fall during the study duration as it

may affect the firing of the kiln.

Bad Weather

As the brick manufacturing operation in BTKs is open to weather, the precision of detailed

study is affected by adverse weather conditions (rain, wind, storms, etc).

1.4.3 Specific fuel and electricity consumption

Based on the data collected from 69 units where the energy audits were conducted, the

average specific fuel consumption in a typical brick kiln is being calculated to be 558

Tones of Coal for producing 31 lakh of bricks annually.

Electricity is not being consumed in operational process in a brick kiln, however it is used

in some of the units for lighting purpose in the night for the coal feeders.

1.5 Barriers for adoption of proposed technology/equipments

1.5.1 Technological Barrier

There is a definitive void in development and existing facilities for Research and

Development in this sector. Institutes in the past have been integral in facilitating

technology transfers and improvement in the brick manufacturing cluster all over India,

However there is need for continuous Research and Development associated processes

(Green brick moulding) other than the thermal firing/cooling to encounter the problems

whenever they may arise. Providing Technical support to this industry is the key to keep

them abreast with international best practices in brick making.

Majority of the kiln owners have a closed outlook, choosing to look at only the immediate

future rather than long term benefits and improvements. There is a fairly dominant mindset

of working it till it breaks and an unwillingness to look at repercussions of kiln operations

in terms of land degradation, energy conservation and pollution control.

1.5.2 Financial Barrier

The greater part of the entrepreneurs in the brick community sites lack of financial support

and access to credit from financial institutions. Due to the current technology of the brick

manufacturing process; i.e. its dependence on weather conditions, constant relocations

and its modulus operandi, financial institutions are hesitant to offer a line of credit to


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interested and progressive kiln owners. Such is the disposition of the brick manufacturing

process in this cluster, any major technology upheavals are almost always at a high cost

measure, making it inaccessible to be owners without suitable financial interventions.

1.5.3 Manpower Skill

Varanasi brick cluster faces shortage of trained manpower at every level. There is a void

of competent consultants and qualified masons for planning & supervision of kiln

improvements and kiln construction/renovations respectively. The current state of process

technology is such that there are no formal training options available to the managers and

coal feeders.

1.5.4 Other losses (if any)

Labour problem: Brick industry is a labour intensive industry and major labour force

working in Varanasi brick sector come from the neighborhood states of Bihar, Jharkhand.

The labour force goes back to their native places at the end of the season and their return

to these brick kilns in the next season depends upon the financial deals given to them.

Since there is no certainty about the labour coming back to the same kilns next season,

labour remains a huge problem in the brick sector.


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2 TECHNOLOGY OPTION FOR ENERGY EFFICIENCY IMPROVEMENTS

2.1 Detailed description of technology selected

2.1.1 Description of technology

A BTK with zigzag firing is one of the most fuel efficient kilns. It is different from a straight

line BTK in terms of its fire zone & the coal feeding practices. A BTK with zigzag firing has

a long firing zone (almost two times to six times as compared to a BTK with straight firing)

and the coal feeding process is continuous without any break. The Zigzag kiln consumes

less fuel, uses less mechanical energy and requires far less capital outlay with very low

maintenance. It also has a roof resulting in improved working conditions and longer

operational time during raining conditions. The Zigzag kiln is ideally suited to both large

scale brick making settings and to very small village applications in developing countries.

In Zigzag mode of operation, the combustion zone is divided into 2-6 chamber (4 -12 lines)

using partitioning green brick arrangement and the kiln is operated at a high draught for a

fast rate of fire travel. The wall chamber runs along the width of the gallery except one

end, where a space of 1.0ft is left for communication to the next chamber. The number of

bricks per chamber depends upon the design capacity of the kiln and can vary anywhere

from 5,400 – 10,000 bricks.

Figure 4: Zig-zag technology

2.1.2 Technology specification

In zigzag mode of operation average consumption of fuel is around 3000 MJ /1000 brick

as compare to traditional BTK kiln where fuel consumption almost 4500 MJ/1000 brick in

zigzag type of kiln can also use fuel having low calorific value and the most sensitive and

complicated brick can also fired in this type of kiln. Details of fuel consumption are shown

in Table 1 below:


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Table 1: Fuel consumption per year

Particular Unit Value

Coal consumption per lakh Bricks tonne 18

Coal consumption per lakh Bricks after adoption of Zigzag Firing tonne 13.5

Annual Coal Consumption tonne 558

Coal saved in a year tonne 139.5

Cost Savings Rs` 6,97,500

2.1.3 Suitability or integration with existing process

Zigzag firing pattern is easily suitable in the existing system as there is no technology

change as such. It is only process change with requirement of some structural changes.

Zigzag is already being successfully in use in Varanasi cluster in 3 kilns. It is one of the

most energy efficient technologies available.

2.1.4 Superiority over existing technology

Among existing kiln designs being used in India, kilns based on Zigzag firing is one of the

brick kiln designs having lowest specific energy consumption. A specific energy

consumption table in brick kilns is provided in Table 2 below:

Table 2: Specific Energy Consumption

Kiln Specific Energy Consumption (MJ/kg) fired product

Clamp (Biomass) 1.9

Clamp (Cole) 1.2 - 1.75

Moving chimney (BTK) 1.2-1.75

Fixed chimney 1.1-1.4

Zigzag 0.8-1.1

VSBK 0.7-1.0

2.1.5 Availability of technology

Zigzag firing concept was first introduced in India in 1970 in form of high draught kiln.

Though it is a new concept in Varanasi brick cluster but Zigzag firing technique is being

successfully installed & running in 3 kilns in Varanasi cluster.


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2.1.6 Source of technology

Zigzag firing technique has been derived from Habla kiln which was invented in Germany

in 1927. This technology was widely used developed countries like Germany and

Australia. It was first introduced in India in the year 1970. Though it is not a very popular

technique in brick industry in Varanasi cluster, but it is one of the most fuel efficient

technologies available.

2.1.7 Service/technology providers

M/s Prayag Bricks is the local service provider for this technology in Varanasi. They have

the experience of operating zigzag fired brick kilns and provided consultancy &

implementation support for either converting a BTK with straight line firing to zigzag firing

or establishing a new kiln with zigzag firing.

2.1.8 Terms and condition of sales

Prayag Brick, after implementation of technology will be doing the capacity building of

existing manpower relating to Zigzag firing operations and it will also ensure efficient

performance of retrofit setting kiln in first round productions.

2.1.9 Process down time during implementation

The brick industry in Varanasi is not operational during the rainy season. In the months

June to October, the operations related to manufacturing of bricks remain closed. This off

season time can be utilized for retro-fitting works related to implementation of Zigzag

process change to minimize the process down time.

2.2 Life cycle assessment and risks analysis

In case of BTK to Zigzag retrofitting it will continue till brick kiln exist .No need to any

further huge modification after one time technology changes, in case of risk analysis there

is a need of proper tanning of worker and kiln operator for coal fiddling process and other

process of brick kilns like green brick feeding.

2.3 Suitable unit/plant for implementation of proposed technology

BTK having capacity of 7 to 10 lakh bricks per round and production of more than 45 lakh

brick per season are ideal for implementing the Zigzag firing process.


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3 ECONOMIC BENEFITS FROM NEW ENERGY EFFICIENT TECHNOLOGY

3.1 Technical benefits

3.1.1 Fuel saving

On basis of field studies conducted in the Varanasi cluster and technology gap

assessment of available technology/ process up-gradations, the entrepreneurs can be

convinced to adopt Zigzag technologies based on the information provided. Applying a

generic ruling for adoption of technologies, the probability of low and medium investment

technologies will be high as compared to high investment technologies. So for that zigzag

is one of the most suitable technology. Savings in a typical unit by adopting zigzag firing

are tabulated in Table 3 below:

Table 3: Coal savings per year

Energy Efficient Technology/ Measure Annual Coal Savings

(tonne)

Annual Energy Savings

(Tera joules)

Process Change from straight line to Zigzag Firing 139.5 2.915

The zigzag technology suggested does not have any electricity consumption during any

process, so there is no electricity savings as such while adopting this technology.

3.1.2 Improvement in product quality

The zigzag firing process utilizes the fuel to its max and the fire travels in such a manner

that it heats up the green bricks at equal temperature. A resultant of which is high quality

of bricks being produced as compared to the other process.

3.1.3 Increase in production



fast rate of fire travel. As a result of the long firing & cooling zone, the zigzag process

increases the production capacity of the kiln.

3.1.4 Reduction in raw material consumption

The production of high quality bricks in a zigzag fired kiln will be more than other Kilns and

thus wastage in terms of unusable bricks will be less. This will have a direct effect on

reducing the raw material consumption.

3.1.5 Reduction in other losses

During the initial firing at the start of the season, there is usually 30% wastage in

manufactured brick product. In the subsequent firing rounds of the kiln this wastage is 5%


Page 13 of 42

till the end of the season. This wasted brick products is largely made up of broken or

melted bricks which are not fit for market sale.

Additional waste from Bull trench kiln operation includes fly ash from incomplete

combustion. This is recycled in the operation of Bull Trench Kilns by spreading and

covering the top layer of the stacking arrangement in the trench for insulation purposes.

There is also the issue of degradation of land by digging up of top soil making it unsuitable

for agriculture after the kiln operations cease. This is a very a very important concern in

India where poverty is widespread.

Adoption of zigzag firing technology would reduce the amount of fly ash formed due to

incomplete combustion and significant reduction in wasted fired bricks. It will also help in

saving the land from degradation by reduction in un-usable brick wastage.

3.2 Monetary benefits

3.2.1 Monetary savings due to reduction in energy consumption

Monetary savings in a typical unit after adoption of zigzag firing process has been

estimated around ` 6, 97,500/-. This figure has been arrived based on the annual coal

savings in a typical unit multiplied by average rate of coal/ Ton.

3.3 Social benefits

3.3.1 Improvement in working environment

Zigzag kiln technology offers a solution to the environmental impact of climate change.

These kilns are economical to build, environment friendly, use commercially proven

technology, and due to its unique design allows for the use of cheaper inferior fuels while

still retaining efficiency and low pollution. The unique Zigzag kiln technology provides a far

superior, safer and cleaner working environment for its workforce. The Zigzag kiln is

particularly suited to developing countries where labor is cheap and technology is

antiquated.

3.3.2 Improvement in skill

In a zigzag fired kiln, there is major change in the firing technique from the tradition

straight line fired kiln. The number of chamber fired at one time is higher as compared to

straight line firing and it requires continuous feeding of the fuel. The adoption of zigzag

firing technology requires capacity building of the workers associated with the firing &

related processes. This results in improving the skill set of these workers.

3.4 Environmental benefits


Page 14 of 42

3.4.1 Reduction in effluent generation

During the initial firing rounds at the start of the season, there is usually 30% wastage in

manufactured brick product and it is around 5% at the end of the season. This wasted

brick products is largely made up of broken, overheated or melted bricks which are not fit

for market sale. In zigzag firing mode of operation, the improved fuel combustion results in

reduction of these wastes to minimum.

3.4.2 Reduction in GHG emission such as CO2, NOx, etc

There are significant reductions to be achieved in Green House Gas emission by adoption

of zigzag firing technology. Reduction in coal consumption translates into GHG reductions

roughly to the order of 1.4 tonnes of GHG per ton of coal which is 195 tCO2 reductions per

year. The other benefits include, decrease in particulate pollution levels in kiln and

surrounding area.

3.4.3 Reduction in other emissions like SOx

Due to Zigzag flue exhaust gas path it capture maximum emission product in comparison

to other brick kilns.


Page 15 of 42

4 IMPLEMENTATION OF NEW ENERGY EFFICIENT TECHNOLOGY

4.1 Cost of technology implementation

4.1.1 Cost of technology

The costs of equipments that will be required after adoption of zigzag technology are

provided in Table 4 & Table 5 below:

Table 4: Cost of equipment

S.NO. Particulars Cost

1. Cost of Equipments

a) Feed hole covers – 100 nos. @ ` 550/- ` 55,000/-

b) Insulated Shunt – 2 nos. @ ` 25000/- ` 50,000/-

c) Temperature gauge for Shunt – 2 nos. @ ` 1500/- ` 3,000/-

d) Thermocouple – 1 set (includes 1 small and 1 big) ` 10,000/-

e) Temperature Indicator- 1 no. @ `3000/- ` 3,000/-

Total Rupees One lac twenty one thousand only/- ` 1,21,500/-

4.1.2 Other costs

Table 5: Cost of civil work and consultancy

S.NO. Particulars Cost

1. Cost of modification in Civil structure ` 4,50,000/-

2. Cost of Consultancy and training to workers and supervisors ` 1,50,000/-

Total Rupees Six lakh only/- ` 6,00,000/-

.

4.2 Arrangements of funds

The Japan International Cooperation Agency (JICA) has extended a Line of Credit to

Small Industries Development Bank of India (SIDBI) for financing Energy Saving projects

in Micro, Small and Medium Enterprises (MSMEs) Sector. The project is expected to

encourage MSME units to undertake energy saving investments inplant & machinery /


Page 16 of 42

production process to reduce energy consumption, enhance energy efficiency, reduceCO2

emissions and improve the profitability in the long

The financial parameters for assistance under the Scheme are furnished in Table 6 below:

Table 6: Financial parameters

Parameter Norms

Minimum Assistance ` 10 lakh

Minimum promoters contribution 25% for existing units

Debt Equity Ratio Maximum 2.5 :1

Interest Rate

The interest rate is based on internal risk rating within the

band given below :

_ Fixed rate: 9.5 – 10% p.a.

_ Floating rate : 9.75 – 10.5% p.a.

Security

First charge over assets acquired under the scheme;

first/second charge over existing

Assets and collateral security as may be deemed

necessary.

Asset coverage Minimum Asset Coverage should be 1.4: 1 for new units

and 1.3: 1 for existing units.

Repayment period

Need based. Normally, the repayment period does not

extend beyond 7 years. However,

longer repayment period of more than 7 years can be

considered under the Line if considered necessary


Page 17 of 42

4.3 Financial indicators

4.3.1 Cash flow analysis

Cash flow analysis is given in Annexure – 5.

4.3.2 Simple payback period

Payback period will be Less than 2 years (13 months).

4.3.3 Net Present Value (NPV)

Net Present Value at 10% works out to be `12.29 lakh.

4.3.4 Internal rate of return (IRR)

After tax IRR of the project works out to be 72.88%. Thus the project is financially viable.

4.3.5 Return on investment (ROI)

The average ROI of the project activity works out at 35.99%.

Details of financial indicator are furnished in Table 7 below:

Table 7 Financial indicator of proposed technology

Particulars Unit Value

Simple Pay Back period Month 13

IRR %age 72.88

NPV lakh 12.29

ROI %age 35.99

DSCR Ratio 4.17

4.4 Sensitivity analysis1

In different situation fuel saving may increase or decrease on the basis of this scenarios a

sensitivity analysis in realistic, pessimistic and optimistic has been carried out on the basis

of two scenarios as considers

Fuel saving increase by 5%

Fuel saving decrease by 5%

Sensitivity analysis for two different scenarios is shown in Table 8 below:

1 Optimistic and Pessimistic scenario signify 5% better and lower efficiency than the realistic one,

respectively.


Page 18 of 42

Table 7: Sensitivity analysis

Particulars DSCR IRR ROI NPV

Normal 4.17 72.88% 35.99% 12.29

5% increase in fuel savings 4.38 77.61% 36.09% 13.27

5% decrease in fuel savings 3.96 68.14% 35.88% 11.31

Assuming all provision and resource input would be similar during economic analysis

4.5 Procurement and implementation schedule

Figure 5: Implementation schedule

2 Weeks 12 Weeks 4 Weeks 4 Weeks Time

Period

Total

22


Page 19 of 42

Annexure – 1: Energy audit reports used for establishing

The results of 22 kilns detail energy audit with heat balance is given below

Audit No. 1

Table – 9 Energy audit number 1

Heat Balance

Particulars Unit Value %age

Sensible heat in Brick MJ 192 0.8

Energy in water vapour leaving the system MJ 751 3.3

Heat required for chemical reactions MJ 6494 28.2

Dry flue gas loss MJ 2027 8.8

Unaccounted (mainly structure + surface) MJ 13547.6 58.9

Total heat input MJ 23011 100

Total heat input MJ 23010.9 -

Kiln Efficiency %age - 31.5

Coal CV MJ 20.9 -

Specific Energy consumption MJ/Kg Brick 1.20133 -

Audit No. 2


Heat Balance







Page 20 of 42



Kiln Efficiency % age - 34.9

Coal CV MJ 19.3 -


Audit No. 3


Heat Balance








Kiln Efficiency MJ 31.8 %

Coal CV MJ 25.3 -


Audit No. 4


Heat Balance




Page 21 of 42







Coal CV MJ 23.1 -


Audit No. 5


Heat Balance









Coal CV MJ 23.1 -


Audit No. 6


Page 22 of 42


Heat Balance









Coal CV MJ 26.1 -


Audit No. 7


Heat Balance









Coal CV MJ 21.2 -



Page 23 of 42

Audit No. 8


Heat Balance









Coal CV MJ 21.1 -


Audit No. 9


Heat Balance










Page 24 of 42

Coal CV MJ 25.3 -


Audit No. 10


Heat Balance









Coal CV MJ 21.1 -


Audit No. 11


Heat Balance







Page 25 of 42




Coal CV MJ 25.1 -


Audit No. 12


Heat Balance









Coal CV MJ 25.6 -


Audit No. 13


Heat Balance




Page 26 of 42







Coal CV MJ 21.2 -


Audit No. 14


Heat Balance









Coal CV MJ 18.8 -



Page 27 of 42

Audit No. 15


Heat Balance









Coal CV MJ 21.4 -


Audit No. 16


Heat Balance










Page 28 of 42

Coal CV MJ 20.7 -


Audit No. 17


Heat Balance









Coal CV MJ 25.2 -


Audit No. 18


Heat Balance







Page 29 of 42




Coal CV MJ 25.2 -


Audit No. 19


Heat Balance









Coal CV MJ 20.9 -


Audit No. 20


Heat Balance




Page 30 of 42







Coal CV MJ 25.2 -


Audit No. 21

Table – 29Energy audit number 21

Heat Balance









Coal CV MJ 22.9l -



Page 31 of 42

Audit No. 22


Heat Balance









Coal CV MJ 25.5 -



Page 32 of 42

Annexure – 2: Process flow diagram

While the principles of brick manufacture in BTK’s is fairly consistent, individual units may

and sometimes do depart from these basics to fit their particular requirements, raw

materials and mode of operations. The essential steps in brick making are shown in the

diagram below.

Figure 6: Process flow of brick manufacturing

The first three steps of the brick making process usually start around about 20-40 days

before the actual firing of the kiln. This is done to build up a decent stockpile of dried green

bricks for continuous operation of the brick kiln. The firing up process of the brick kiln

takes 10-20 days to make the kiln reach its appropriate temperature for the bricks to

solidify and acquire its pre requisite fired brick attributes. The entire process is continual

and once the firing is initiated, very rarely is the kiln operation course halted


Page 33 of 42

Annexure – 3: Detailed technology assessment report

The brick kilns technology in the entire Varanasi cluster are of the traditional coal fired

fixed chimney Bull’s Trench Kilns (BTK) type, with fixed natural draft chimneys.

Proposed Technology from Straight line firing to Zigzag Firing

Description:

Zigzag firing kilns were at one time widely popular in developed countries like Australia

and in Europe. These kilns are typically shorter in size (trench size, and overall kiln length)

and have a longer combustion zone than straight line firing kilns.



fast rate of fire travel. The wall chamber runs along the width of the gallery except one

end, where a space of 1.0ft is left for communication to the next chamber. The number of

bricks per chamber depends upon the design capacity of the kiln and can vary anywhere

from 5,400 – 10,000 bricks.

Figure 7: Schematics of Double Zigzag Firing


Page 34 of 42

Annexure – 4: Drawings for proposed civil works required for implementing new

technology/equipment

For proposed technology drawings are as follows

Figure 8: Proposed technology drawings


Page 35 of 42

Annexure – 5: Detailed financial calculations & analysis for financial indicators

Assumptions

Name of the Technology BTK With Zigzag Firing

Rated Capacity NA

Details Unit Value Basis

Installed Capacity NA NA Installed Capacity

No of working days Days 200 No of working days

No of Shifts per day Shifts 3 No of Shifts per day

Capacity Utilization Factor % Capacity Utilization Factor

Proposed Investment

Plant & Machinery `(in lakh) 1.22 Feasibility Study

Cost of modification in civil construction `(in lakh) 4.50 Feasibility Study

Cost of consultancy `(in lakh) 1.50 Feasibility Study

Total Investment `(in lakh) 7.22

Financing pattern

Own Funds (Equity) `(in lakh) 1.80 Feasibility Study

Loan Funds (Term Loan) `(in lakh) 5.41 Assumed

Loan Tenure Years 5 Assumed

Moratorium Period Months 6 Assumed

Repayment Period Months 66 SIDBI Lending rate

Estimation of Costs

O & M Costs on Plant & Equip 2.00% Feasibility Study

Annual Escalation % 2.00 Feasibility Study

Estimation of Revenue

Coal savings tons 139.50

Cost `/ tonne 5000

St. line Depn. % 13.91 Indian Companies Act

IT Depreciation % 100.00 Income Tax Rules

Income Tax % 33.99 Income Tax

Estimation of Interest on term loan


Page 36 of 42

`̀̀̀ (in lakh)

Years Opening Balance Repayment Closing Balance Interest

1 5.41 0.48 4.93 0.49

2 4.93 0.84 4.09 0.45

3 4.09 1.02 3.07 0.36

4 3.07 1.08 1.99 0.26

5 1.99 1.15 0.84 0.15

6 0.84 0.84 0.00 0.02

5.41

WDV Depreciation `̀̀̀ (in lakh)

Particulars / years 1 2 3 4 5 6

Plant and Machinery

Cost 5.72 - - - - -

Depreciation 5.72 - - - - -

WDV - - - - - -

Projected Profitability `̀̀̀ (in lakh)

Particulars / Years 1 2 3 4 5 6 Total

Revenue through Savings

Fuel savings 6.98 6.98 6.98 6.98 6.98 6.98 27.90

Total Revenue (A) 6.98 6.98 6.98 6.98 6.98 6.98 27.90

EXPENSES

O & M Expenses 0.14 0.15 0.15 0.15 0.16 0.16 0.75

Total Expenses (B) 0.14 0.15 0.15 0.15 0.16 0.16 0.75

PBDIT (A)-(B) 6.83 6.83 6.82 6.82 6.82 6.82 34.12

Interest 0.49 0.45 0.36 0.26 0.15 0.02 1.71

PBDT 6.34 6.37 6.46 6.56 6.67 6.79 32.41

Depreciation 1.00 1.00 1.00 1.00 1.00 1.00 5.02

PBT 5.34 5.37 5.46 5.56 5.67 5.79 21.73

Income tax - 2.17 2.20 2.23 2.27 2.31 6.59

Profit after tax (PAT) 5.34 3.20 3.26 3.33 3.40 3.48 15.13


Page 37 of 42

Computation of Tax `̀̀̀ (in lakh)

Particulars / Years 1 2 3 4 5 6

Profit before tax 5.34 5.37 5.46 5.56 5.67 5.79

Add: Book depreciation 1.00 1.00 1.00 1.00 1.00 1.00

Less: WDV depreciation 5.72 - - - - -

Taxable profit 0.63 6.37 6.46 6.56 6.67 6.79

Income Tax - 2.17 2.20 2.23 2.27 2.31

Projected Balance Sheet


LIABILITIES

Share Capital (D) 1.80 1.80 1.80 1.80 1.80 1.80

Reserves & Surplus (E) 5.34 8.54 11.80 15.13 18.54 22.01

Term Loans (F) 4.93 4.09 3.07 1.99 0.84 0.00

TOTAL LIABILITIES (D)+(E)+(F) 12.08 14.44 16.68 18.93 21.18 23.82

ASSETS

Gross Fixed Assets 7.22 7.22 7.22 7.22 7.22 7.22

Less Accm. depreciation 1.00 2.01 3.01 4.01 5.02 6.02

Net Fixed Assets 6.21 5.21 4.20 3.20 2.20 1.19

Cash & Bank Balance 5.86 9.23 12.48 15.73 18.98 0.00

TOTAL ASSETS 12.08 14.44 16.68 18.93 21.18 1.19

Net Worth 7.14 10.35 13.61 16.94 20.34 23.82

Debt Equity Ratio 0.69 0.40 0.23 0.12 0.04 0.00


Page 38 of 42

Projected Cash Flow: `̀̀̀ (in lakh)

Particulars / Years 0 1 2 3 4 5 6

Sources

Share Capital 1.80 - - - - - -

Term Loan 5.41

Profit After tax 5.34 3.20 3.26 3.33 3.40 3.48

Depreciation 1.00 1.00 1.00 1.00 1.00 1.00

Total Sources 7.22 6.34 4.21 4.26 4.33 4.41 4.48

Application

Capital Expenditure 7.22

Repayment Of Loan - 0.48 0.84 1.02 1.08 1.15 0.84

Total Application 7.22 0.48 0.84 1.02 1.08 1.15 0.84

Net Surplus - 5.86 3.37 3.24 3.25 3.26 3.64

Add: Opening Balance - - 5.86 9.23 12.48 15.73 18.98

Closing Balance - 5.86 9.23 12.48 15.73 18.98 22.63

IRR `̀̀̀ (in lakh)

Particulars / months 0 1 2 3 4 5 6

Profit after Tax 5.34 3.20 3.26 3.33 3.40 3.48

Depreciation 1.00 1.00 1.00 1.00 1.00 1.00

Interest on Term Loan 0.49 0.45 0.36 0.26 0.15 0.02

Salvage / Realisable value -

Cash outflow (7.22) - - - - - -

Net Cash flow (7.22) 6.83 4.66 4.63 4.59 4.55 4.51

IRR 72.88%

NPV 12.29


Page 39 of 42

Break Even Point


Variable Expenses

Oper. & Maintenance Exp (75%) 0.11 0.11 0.11 0.11 0.12 0.12

Sub Total(G) 0.11 0.11 0.11 0.11 0.12 0.12

Fixed Expenses

Oper. & Maintenance Exp (25%) 0.04 0.04 0.04 0.04 0.04 0.04

Interest on Term Loan 0.49 0.45 0.36 0.26 0.15 0.02

Depreciation (H) 1.00 1.00 1.00 1.00 1.00 1.00

Sub Total (I) 1.53 1.50 1.41 1.30 1.19 1.07

Sales (J) 6.98 6.98 6.98 6.98 6.98 6.98

Contribution (K) 6.87 6.86 6.86 6.86 6.86 6.86

Break Even Point (L= G/I) 22.23% 21.78% 20.48% 18.95% 17.33% 15.58%

Cash Break Even {(I)-(H)} 7.61% 7.16% 5.85% 4.32% 2.69% 0.94%

Break Even Sales (J)*(L) 1.55 1.52 1.43 1.32 1.21 1.09

Return on Investment `̀̀̀ (in lakh)


Net Profit Before Taxes 5.34 5.37 5.46 5.56 5.67 5.79 33.18

Net Worth 7.14 10.35 13.61 16.94 20.34 23.82 92.19

35.99%

Debt Service Coverage Ratio `̀̀̀ (in lakh)


CASH INFLOW

Profit after Tax 5.34 3.20 3.26 3.33 3.40 3.48 22.01

Depreciation 1.00 1.00 1.00 1.00 1.00 1.00 6.02

Interest on Term Loan 0.49 0.45 0.36 0.26 0.15 0.02 1.73

Total (M) 6.83 4.66 4.63 4.59 4.55 4.51 29.76

DEBT

Interest on Term Loan 0.49 0.45 0.36 0.26 0.15 0.02 1.73

Repayment of Term Loan 0.48 0.84 1.02 1.08 1.15 0.84 5.41

Total (N) 0.97 1.29 1.38 1.34 1.30 0.86 7.14

Average DSCR (M/N) 4.17


Page 40 of 42

Annexure – 6: Details of procurement and implementation plan

S.No. Activity

Weeks

2 4 6 8 10 12 14 16 18 20 22

1 Service Contract

2 Civil Modification

3 Feed Hole

Covers

4 Shunt Insulation

5 Training

6 Trail operation


Page 41 of 42

Annexure – 7: Details of technology/equipment and service providers

Name Organisation Contact No. E-mail

Mr.O.P. Badlnai

Prayag Bricks

S 4/32, A-1 Orderly Bazar

+91-993511095 [email protected]

Mr.Anil Kumar

BTECON -5,Millinium

Business Center , 34

corner Market Malviya

Nagar, New Delhi

+91-9891584175 [email protected]


Page 42 of 42

Annexure – 8: Quotations or Techno-commercial bids for new

technology/equipment

S.NO. Particulars Cost (In `̀̀̀))))

1. Cost of modification in Civil structure 4,50,000/-

2. Cost of Equipments:

a) Feed hole covers – 100 nos. @` 550/- 55,000/-

b) Insulated Shunt – 2 nos. @ ` 25000/- 50,000/-

c) Temperature gauge for Shunt – 2 nos. @ ` 1500/- 3,000/-

d) Thermocouple – 1 set (includes 1 small and 1 big) 10,000/-

e) Temperature Indicator- 1 no. @3000/- 3,000/-

3. Cost of Consultancy and training to workers and

supervisors

1,50,000/-

Total Rupees Seven lakh twenty one thousand only/- 7,21,000/-

Note:-

Cost of modification in civil structure may vary depending on kiln condition.

If modification required in chimney that’s cost will be extra.

Thanking you,

Yours truly

O.P. Badlani

Prayag Bricks

S 4/32, A-1 Orderly Bazar

Varanasi. Mob:- +91-993511095

of 7

Standard application form for financial assistance to existing units (upto and including Rs. 50 lakh)

I Applicant details

1 Name of Unit

2 Address for correspondence

3 Constitution

4 SSI Registration. No.

5 Date of Incorporation

6 Date of Commencement of Operations

7 Activity / Industry

Registered Office Factory / Service Establishment (existing)

Factory / Service Establishment (proposed)

Full Address

Contact Person(s)

Tel No.

Fax No.

E mail address

II Promoters/Directors Bio-data of all the promoters/directors of the unit (Preferably make separate sheet for

each promoter/director)

Promoter/Director

Name

Full Address( incl Tel no./ mobile no)

Age

Passport No.

Father's / husband's name

Qualification

Experience

Functional responsibility in the unit

Relationship with Chief Promoter

Shareholding in the unit

Net worth

Pl. furnish details of any other shareholder having more than 5% in the unit.

Application form for Application form for Application form for Application form for Loans upto and including Rs. 50 lakhLoans upto and including Rs. 50 lakhLoans upto and including Rs. 50 lakhLoans upto and including Rs. 50 lakh

Page 2 of 7

III. Products Manufactured

Sl. No.

Product Installed capacity p.a.

Present capacity utilisation

End use of product Export orientation

Yes/ No

IV. Existing Facilities with Banks /FIs incl. SIDBI a Name of the Bank(s) / FI, Branch,

b Dealing person and contact tel. no.(s)..

c Dealing since (each Bank / FI)

Facilities enjoyed :

Nature of facility (bankwise)

Amount (Rs. lakh) Rate of interest

Nature of Security and value

Sanctioned Outstanding as on ___ ___

Fund based Basedkfjdffkldkfjdfkjdfkjdfkdjfkdjf

-Term Loan

-Working capital

Non Fund Based

Are there any defaults ? Yes/No V. Financial Position of applicant unit/ associate concern (Rs. lakh)

Net-worth Sales Net profit

Y1 Y2 Y3 Y1 Y2 Y3 Y1 Y2 Y3 Applicant unit Associate concern I

Associate concern II

Details of Associate concerns to be given as per Annexure I. VI. Project Details 6.1. Purpose for which assistance now required : Purpose

1 Indicate whether Expansion /diversification / modernisation and details

Technology Upgradation for Energy Efficiency

2 If new products envisaged give details N/A

3 Details of expected incremental qualitative / quantitative benefits

Saving in the fuel bill to the extent of 20-25% leading to commensurate improvement in the bottom line of the applicant unit.

4 Expected month/year of implementation 10 months

5 No. of employees existing and additional


Page 3 of 7

Cost of Project (Rs. Lakh)

Sr. No. Details Total Amount

1 Civil Works 4.50

2 Plant & Machinery (incl. installation) * -Indigenous -Imported

1.22

3 Erection & commisioning charge -

4 Preliminary & pre-operative expenses &

1.50

5 Contingency provision, if any (basis)( includes insulation, electrical work etc.)

0.00

TOTAL 7.22

* Details of Plant and machinery/ Misc. fixed assets at Annexure II and III

Indicate details of expenditure already incurred, if any and how the expenditure was financed ?

6.3. Means of Finance (Rs. Lakh)

Sr. No. Details Total 1 Additional share capital / Internal accruals 1.80

2 Interest free Unsecured Loans

3 Term Loan proposed from SIDBI / Banks 5.41 Total 7.22

6.4 Whether additional Working Capital required for the unit. If yes, amount and arrangements proposed may be indicated:

6.5 Technology

S. No. Item

1 Any Technical collaboration? If yes, details

2 Details of main technical professionals employed

3 Any quality certification obtained ? If yes enclose certificate.

6.6 Raw material / Labour/ Utilities 1 Raw material

(Details, arrangement, sources and distance)

2 Power Connected Load Utilised load Requirement of power for Additional machines Back-up arrangement (DG)

3 Other critical inputs if any


Page 4 of 7

6.7 Marketing & Selling Arrangements

Items Applicants remarks

Main Markets (Locations)

Main buyers, Indicate clearly if the unit is relying on a single buyer

Locational advantagesIndicate competitors

Whether product has multiple applications

Distribution channels ( e.g. direct sales, retail network, distribution network )

Marketing team details, if any.

Orders on hand (enclose copies)

6.8 Projected profitability : Statement to be enclosed as per Annexure IV.

6.9 Others

Items Please indicate the various licenses / consents for the project / unit already obtained from the respective authorities

Please indicate licenses / consents for the project / unit that are yet to be obtained. Category as per pollution control dept. If polluting, pollution control measures taken Whether the project is entitled for any govt. subsidy, tax exemptions. Details thereof Repayment period (in months) sought including repayment holiday requested, if any, Details of Collateral security offered and value (basis). List of guarantors for the proposed loan Enclose documents as indicated in the check list at Annexure V.

6.10 Strengths / Weaknesses of the borrower (such as market standing, product/ service

differentiation, technical expertise, infrastructure facilities etc.)

Strengths

Weaknesses

DECLARATION

I/We certify that all information furnished by me/ us above and in the appendix/ annexures/ statements and other papers enclosed is true; I/we have no borrowing arrangements for the unit with any bank / FI except as indicated in the application; that there are no overdues / statutory dues/government enquiry/proceedings/prosecution against the unit/associate concerns/ promoters/directors except as indicated in the application; that no legal action has been/ is being taken against the unit/associate concerns/promoters/directors; that I/ we shall furnish all other information that may be required by SIDBI in connection with my/our application and I/ We have no objection to your furnishing the information submitted by me/ us to any agency as you may deem fit in connection with consideration of the assistance. We have no objection to SIDBI/ its representatives making suitable enquiries while considering the application.

Place : Signature

Date Name & Designation


Page 5 of 7

Annexure I

Details of Associate Concerns Name , Address & products

manufactured Existing since

Name & Address of existing Banker (s)

Facilities Enjoyed Share holding of the main

promoter(s) of applicant unit

Annexure II

Particulars of machinery proposed for the project

Name of machinery, (model /

specification)

Name of manufacturer, contact person, e-mail address telephone no.

Lead time for delivery

of machinery

Invoice price (for

indigenous machinery) / CIF price (for imported ) (Rs. lakh)

Purpose /use of machine

Basis of selection of supplier

Remarks reg. after sale

service etc.

BTK With Zigzag Firing

Mr.O.P.Badlnai Prayag Bricks S 4/32, A-1 Orderly Bazar, Banaras +91-993511095 [email protected]

12 Weeks 1.25 Baking of brick

Crediability of the Technolgy Provider

� Furnish competitive quotations, catalogues / invoice for each machinery proposed to be acquired

�� In case of second hand /fabricated machinery, indicate the need / reasons for acquiring such machinery. Also enclose Chartered Engineer's certificate regarding residual value and life in respect of second hand machinery.

Annexure III

Details of Misc. Assets / equipment Proposed S.No. Name of item Supplier Cost

(Rs. lakh) Purpose/ use of MFA Remarks


Page 6 of 7

Annexure IV

Profitability projections for the Unit/ Company as a whole*

S.No. Item Actuals for

previous

year

Y1 Y2 Y3 Y4 Y5 Y6 TOTAL

1 Total Income 6.98 6.98 6.98 6.98 6.98 6.98 27.90

2 Raw materials

Power and fuel

Wages and salaries

Selling expenses

Other expenses 0.14 0.15 0.15 0.15 0.16 0.16 0.75

Total Cost 0.14 0.15 0.15 0.15 0.16 0.16 0.75

3 Profit before depreciation,

Interest and taxes (PBDIT) (2

- 1)

6.83

6.83

6.82

6.82

6.82

6.82 34.12

4 Interest on Term Loan 0.49 0.45 0.36 0.26 0.15 - 1.71

5 Interest on Working Capital

6 Interest on unsecured loans

7 Depreciation 1.00 1.00 1.00 1.00 1.00 1.00 5.02

8 Profit before Tax (3 - 4 - 5 - 6

- 7)

5.34 5.37 5.46 5.56 5.67 5.81 21.73

9 Tax - 2.17 2.20 2.23 2.27 2.32 6.59

10 Profit after Tax (8 - 9) 5.34 3.20 3.26 3.33 3.40 3.50 15.13

11 Dividends/ Withdrawals

12 Cash Accruals ( 10 - 11 + 7) 6.34 4.2 4.26 4.33 4.4 4.5 20.15

13 Repayments of all term

liabilities (Principal)

0.48

0.84

1.02

1.08

1.15

0.84 5.41

14 Debt Service Coverage Ratio

((10+7+4)/(13+4))

7.04 3.60 3.35 3.43 3.50 5.26 4.17

15 Average DSCR (Total of

10+7+4 for projected

period/(Total of 13+4 for

projected period)

4.17

* Please give projections for the entire tenure of SIDBI / Bank loan.


Page 7 of 7

Annexure V

CHECK LIST of documents to be submitted along with the application

S. No. Documents Y/N Reasons for Non-submission

1 SSI Regn. / CA certificate certifying SSI status

2 Certified copies of Memorandum & Articles of association / Partnership Deed

3 Audited financial results for the last three years of Applicant unit

4 Copies of lease deed / sale deed on which the unit is situated

5 Copies of sanction letters from commercial banks / FIs which have sanctioned assistance to the unit

6 NOC from pollution control board/consent letter, if applicable

7 IT Returns/Assessment orders/Sales tax returns of the Applicant Unit/ promoters/directors for 2 years

8 List of existing plant and machinery

9 Competitive quotations for machines and Misc. fixed assets proposed to be acquired under the scheme

10 Duly signed latest net worth statements of promoters/directors & guarantors in SIDBI format; In case of guarantors please furnish, Name, Age, Father's/Husband's name, residential address. Details of similar guarantee, if any, given to other institutions

11 2 sets of photographs along with signatures of all promoters/directors/guarantors duly certified by a Bank or Gazetted Officer.

12 Audited financial results for last three years for each associate concerns. If applicable.

13 Copy of title deed of collateral security and valuation report

*****

India SME Technology Services Ltd DFC Building, Plot No.37-38, D-Block, Pankha Road, Institutional Area, Janakpuri, New Delhi-110058 Tel: +91-11-28525534, Fax: +91-11-28525535 Website: www.techsmall.com

Bureau of Energy Efficiency (BEE) (Ministry of Power, Government of India) 4th Floor, Sewa Bhawan, R. K. Puram, New Delhi – 110066 Ph.: +91 – 11 – 26179699 (5 Lines), Fax: +91 – 11 – 26178352

Websites: www.bee-india.nic.in, www.energymanagertraining.com

Feedback Ventures Pvt. Ltd 15th Floor, Tower 9B, DLF Cyber city DLF Phase-III, Gurgaon-122 002 Ph: 0124-416 9100 Fax: 0124-416 9175 www.feedbackventures.com