‘Punjab Govt should promote setting up of modernised brick-kilns’

Industry & Lockdown

Advertisement

Mukesh Nanda, owner of Tara Chand Nanda brick-kiln firm, which was set up in 1979, advocates the opening of construction units so that daily wagers can start earning in this time of crisis. In an interview with Neeraj Bagga, Nanda shares his views on the post-lockdown scenario. Excerpts:

How has the lockdown impacted your brick-kiln unit?

Brick-kiln is a labour intensive and seasonal industry. Bricks are produced between February and June as the hot weather aids the functioning of furnace and diminishes the requirement of fuel. So, five types of labour are involved in brick-making. Labour involved in the baking and nakasi process usually comes from UP, Bihar and Rajasthan. But due to the lockdown, labourers are unable to reach the unit, leading to shortage.

Last year, a majority of the brick-kilns in Punjab were converted into the induced draft technology, while the remaining units were planning to adopt it this year. Those converted to induced draft technology planned to recover their investments this year, but Covid-19 hit their business investments. — Mukesh Nanda, owner, Tara Chand Nanda brick-kiln

Do you expect resumption of your business in near future?

The Ministry of Environment and Forests issued a notification on February 25, 2019, that the conventional brick-kilns situated within 300 km of a thermal power plant should be switched to using fly ash and pond ash as fuel for their furnace. They were contemplating to add another unit to the same line this year. However, the plan has been deferred and will now be executed only after evaluating the situation next year.

How are you managing the issue of paying salaries to labourers?

We have been providing wages to workers. The expenditure of a brick-kiln per day is at least Rs70,000. Permission has been granted for the sale of bricks in some districts. But, it should be allowed in all districts of the state. Lack of sale will only lead to a liquidity shortage, which will accentuate the existing problem adversely and affect the construction sector as a whole in immediate future. Construction as a whole involves cement, steal, iron, furniture, sanitary and daily wagers.

Have any of your major investments got deferred due to the lockdown?

Last year, a majority of the brick-kilns in Punjab were converted into the induced draft technology, while the remaining units were planning to adopt it this year. Those converted to induced draft technology planned to recover their investments this year, but Covid-19 hit their business investments.

What lessons have you learnt from the lockdown as a businessman?

The Almighty is great. Without God’s grace, movement of even a leaf is not possible. Seeing the current situation, it is felt that the God is servicing our earth.

Do you consider the current crisis as a challenge or an opportunity?

It is a great challenge for the brick-kiln industry to overcome the crisis and absorb its impact. Huge daily expenditure is intact, but there is no income. Once the markets are opened, it will take some time for the demand for construction material to pick up. After sometime, the demand will increase.

What are your expectations from the government?

The government should promote setting up of new modernised kilns and offer subsidies in their modernisation. It is tough time for the trade and the industry. The government should boost MSME as it provides employment to a large number of people. Taking a leaf out of China, the government must step in to boost R&D in the brick-kiln and other industries to improve quality of products. In addition, the government should reduce interest rates on demand loans and enhance loan limits of the MSME. It should create a labour welfare fund from unclaimed EPF.