Bricks industry in India has witnessed remarkable growth over the past decade, driven by the growth in construction and infrastructure activities. Furthermore, the ever-increasing population and escalating urbanization have increased this sector’s growth many folds. India’s brick sector is predominately unorganized and recognized by the availability of large and small-scale units. If you are looking to set up brick kiln in India, this could be the right time for you. The write-up illustrates the legalities around this business model in detail.
Basic criteria for starting brick kilns set up in India
According to the Brick Kilns (Regulation) Act, 2010, brick kilns cannot be setup on any land which is
- Suitable for cultivation
- Hasn’t been listed as Banjri-Kadim in the record of the Revenue department
- Located in the demarcated forest area of the State.
Legalities for establishing Brick kiln set-up in India
- Any individual seeking to set up a brick kiln in a particular region of the state shall apply with the licensing authority (District Magistrate, in most cases).
- Every application falling under sub-section (1) & sub-section (2) shall be filed in the application form. Furthermore, it should enclose the following detail:
- Proposed location of brick kiln
- Size of the brick kiln
- Type thereof
Documents to be attested with the application for establishing brick kilns
- The site plan and Revenue extract reflect the title, location, type, and status of the land. The concerned Tehsildar should approve both these documents.
- No Objection Certificates from the followings;
- Deputy Commissioner
- State Pollution Control Board ;
- Wildlife Warden
- Divisional Forest Officer
- District Agriculture Officer
- Director, Geology and Mining ;
- Block Medical Officer
- The Executive Engineer (PWD/R&B)
- Tehsil Education Officer
Legal checks to be made by licensing authority
Before issuing license under sub-section (5) of Brick Kilns (Regulation) Act, 2010, the licensing authority shall make some legal checks in regard to the application on account of the followings;
(a) The suitability of the region wherein the proposed brick kiln is to be set up;
(b) The number of brick kilns functional in the region;
(c) Health and environmental impact of such kiln on nearby habitat, agricultural land water resources.
(d) Type of land where such a kiln is proposed to be set-up
Validity of Brickkiln License
A license issued under the Brick Kilns (Regulation) Act, 2010 shall remain valid for two years from the date of its issuance. The licensing authority can renew such a license for two years provided the licensee has secured the Royalty Clearance Certificate from the Geology & Mining Department.
Obligations for licensee after securing the brick kilns license
- As soon as the applicants receive the brick kiln license, they are required to seek registration of the brick kiln from the relevant Industries and Commerce Department. It is mandatory to do so before setting up the brick kiln.
- Every licensee is obligated to ensure adherence to the pollution control norms. In view of this, the licensee shall take all measures, adopt such practices and install such equipment meant for the environmental protection and pollution control as directed by the authority concerned.
- Air pollution triggered by exhaust emissions, dust or fumes shall be curtailed and kept well under the threshold limit as specified under the governing laws.
- Every registered Kiln owner shall extract and consume the clay for brick manufacturing after securing a valid permit on payment royalty as prescribed by the Geology and Mining Department.
- Non-payment of royalty shall lead to consequences such as cancellation of licence and recovery of royalty, fine, and penalty.
- The bricks produced by the registered kiln owner shall adhere to the norms set forth by the Indian Bureau of Standards or any other agencies authorized on this behalf. Any non-conformity in this context shall be subjected to penalties u/s 21 of Brick Kilns (Regulation) Act, 2010.
An Overview of Indian Brick Sector
- The contribution of the construction industry is accounted for 10 percent of the nation’s GDP, which leads to a 9 percent of annual growth rate. Clay fired bricks serve as a backbone of the construction sector which is presently valued at US$ 70.8 billion. The Indian brick sector has a sheer size and spread.
- India ranks amongst the prominent brick producers after China globally. The Indian brick sector is expanding every passing day owing to the increased demand for bricks in the housing and infrastructure sectors.
- To meet this massive demand, over 150,000 brick facilities have employed more than 8 million workers.
Brick kiln is one of those business set-ups that attract plenty of compliances and paperwork. Also, these facilities are obligated to comply with endless provisions underpinned by various departments, including the Pollution control board and forest department.
Read our Article:How To Set Up A Brick Manufacturing Factory In India?