This document provides an overview of the "Small and Medium Scale Industries (SMIs) in Asia: A Study of Selected Technologies and Policy Options" project. The 3-year project involved research institutes from 5 Asian countries - China, India, Philippines, Sri Lanka, and Vietnam. It analyzed 5 energy-intensive industrial sub-sectors in each country to identify energy efficient and environmentally sound technologies. The project conducted energy and pollution audits, identified technology options to reduce impacts, reviewed policies, and provided training to strengthen local capacities. It produced several reports, technology guides, and established networks to disseminate the findings and support uptake of cleaner technologies in SMIs across Asia.

1. Small and Medium Scale Industries (SMIs) in Asia :
A Study of Selected Technologies and Policy Options
C. Visvanathan
S. Kumar
Asian Regional Research Programme in Energy, Environment and
Climate (ARRPEEC)
Asian Institute of Technology, Thailand
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2. Small and Medium Scale Industries
(SMIs) in Asia: Energy, Environment
and Climate Interrelations
Coordination
• AIT – Asian Institute of Technology, Thailand.
National Research Institutes
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China
India
Philippines
Sri Lanka
Vietnam
: CESTT (Center for Environ. Sound Technology Transfer).
: PSG (PSG College of Technology).
: ITDI (Industrial Technology Development Institute).
: ISB (Industrial Services Bureau).
: NEDCEN (Non-state Economic Development Centre).

3. Presentation Overview
1. Project Objective.
2. Selected industrial sub-sectors.
3. Major research findings.
4. Achievements/impacts of the
project.
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4. 1. Project Objective
Promotion of activities to mitigate GHG emission
and other pollution by SMIs
Research Themes
1.
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3.
4.
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Analysis of production processes, energy use and pollution in
selected industrial sectors.
Identify energy efficient and environmentally sound technologies
and processes (E3ST).
Review existing policies and develop scenarios for sustainable
promotion of E3ST.
Capacity mobilization and enhancement to introduce E 3ST in
selected industrial sectors.

5. 2. Selected Industrial Sub-sectors
• Five industrial sub-sectors were selected across five participating countries.
Countries
Industrial Sub-Sectors
China
India
Textile, Foundry, Tea, Brick
Philippines
Desiccated Coconut, Foundry,
Brick, Ceramic
Sri Lanka
Tea, Ceramic, Desiccated
Coconut, Brick and Tile
Vietnam
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Textile, Foundry, Tea
Tea, Textile, Brick, Ceramic
Rationale for selection:
• Energy intensive and/or highly polluting.
• Commonality across the countries.
• Economic importance in the countries.

6. 3. Major Research Findings
Theme 1: Analysis of Energy use and Pollution Load
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Impacts are individually small, but collectively high
Low energy efficiency
Policies are not specific to SMI
Lack of information on technologies.
Theme 2: Identification of E3ST
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Lack of awareness and information on E3ST
Lack of technical know-how/capacity to implement E3ST
Access to loan is not easy
Lack of links between E3ST developer and SMI

7. 3. Major Research Findings (..cont)
Theme 3: Review, Analysis & Recommendation of Energy and
Environmental Policies
• No specific energy and environmental policies for SMIs.
• Most of the environmental policies (regulations) are based on end of pipe
treatment.
• There is no market based strategy.
• Role of financial institutions in promoting E3ST
- Financial intermediations.
- Financial packages.
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8. 3. Project Outputs
• Five Sector Reports (Tea, DC, Brick, Foundry, and Textile) illustrating
production processes, energy use, pollution and E 3ST options :
Benchmarking/References to be published: Peer Review by Sector Experts.
• One cross country Policy Report on SMI with policy options to promote E 3STs.
• Various Capacity Mobilization and Strengthening programs.
• Identification of E3STs: Technology Fact Sheets (39 nos.) prepared for
dissemination.
• Regular Newsletter (hardcopy & Website).
• Publications (Journal, Conference, and other articles).
• Road Map CD.
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9. 3. Sector Report : Tea Sector
 Highlights of the Report
• Basic production processes are same across the countries, but the degree of
modernization vary.
• Energy and environmental audits conducted show low energy efficiency
and use of outdated technologies (Vietnam has the lowest energy
efficiency).
• GHG emission results in two ways: combustion of fossil fuels, and
electricity use.
 Impacts
• Serves as a reference giving detailed information on tea sector.
• Participating countries learned from each other, realized their key
differences (in energy use and pollution) to address them.
• E3ST suitable for tea sector were identified.
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10. Tea Sector
Green Leaf
Withering
(Orthodox)
Rolling
(CTC)
Rolling
Shredding
CTC Cuts
Automated material
handling systems
Roll Breaking
Direct Oil-fired
Heater for Withering
and Drying of Tea
Screening
Fermenting
Drying
Grading/
Packaging
Energy Efficient Motors
Made Tea
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Tea manufacturing
process
Sector Report on Tea

11. 3. Sector Report : Desiccated Coconut Sector
 Highlights of the Report
• Focuses on two countries : Philippines and Sri Lanka.
• Production process varies a great deal between the two countries:
- Philippines use continuous mechanized mills.
- Sri Lanka use mechanized, semi-mechanized and traditional.
• Audits show drying process consumes about 66% of the total energy used.
• CO2 is emitted mainly from combustion of fuels (fossil and biomass) to produce heat.
• Mills using biomass have lower efficiency.
• Another major source of pollution is the discharge of highly organic (BOD)
wastewater.
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12. Desiccated Coconut Sector
Fresh coconut
De-husking
Burner
Gas tube
De-shelling / hatcheting
Paring and Splitting
Washing and Inspection
(Sri Lanka)
(Philippines)
stabilizing
BLANCHING
SIZE
REDUCTION
SIZE
REDUCTION
Screening, Grading and
Packaging
Dome Type Kiln for Coconut
Shell Carbonizing
PASTEURIZING
Drying
Screening and grading
Packaging
Desi cc ated Coconut
DC production process
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Sector Report on Desiccated
Coconut

13. Report on Policy
 Highlights
•A cross country comparison of national policies
on economy, energy and environment: SMIEnergy and Environment.
•Most policies across the countries are focused
on high energy consuming industries, and little
or no consideration is given in the SMI sectors.
•Policy options are presented for promotion of
E3STs in the five countries.
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14. 3. Capacity Mobilization and Strengthening
 Activities
A number of capacity strengthening programs were conducted; key actors
involved in SMIs took part. The activities include:
• Trainings by AIT and NRIs.
• Seminars in participating countries.
• Workshops at AIT and NRIs.
• Fellowships at AIT.
• In total, 13 nos. of trainings were conducted, in which 276 participants took part
• The trainings covered the areas such as energy and environmental audits,
environmental management, boiler operation, effluent treatments etc.
 Impacts
• Personal are trained in energy and environmental auditing (all NRIs).
• Awareness on environmental management is developed at managerial level
(India, Sri Lanka).
• Operational level people were trained on energy efficiency and environmental
protection (Sri Lanka).
• Awareness developed for political leaders (Sri Lanka).
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15. Capacity Mobilization
SMI Review Workshop at
Coimbatore, India
Training course on
Effective Energy
Management,
Philippines.
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16. 3. Capacity Mobilization and Strengthening (..contd)
 Fellowships
• 17 fellowships were provided (total of 26 man months) , and each fellow
studied different industrial sub-sectors and policy.
Country
Man month
China
2
3
India
3
5
Philippines
4
6
Sri Lanka
 Impacts
No. of Fellows
6
9
Vietnam
2
3
• Developed common audit methodology and reporting mechanism of
technical data.
• Researchers enhanced their technical and analytical competence, and
reporting.
• Fellows from India were able to continue their work to initiate new projects.
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17. 3. Capacity Mobilization and Strengthening (..cont)
 Networking
A SMI network established links the research institutes, industrial
associations, government and NGOs across the five participating countries.
ITA,
UPASI
SITRA,
SIMA
CII
India
CPB/SPB
CODISSIA
(PSG)
PCC
UOM
IATC
CEA
Sri Lanka
(Overall project
coordination and
management)
ECF
NGO
(NEDCEN)
(ITDI)
IA
TU-ERI
Viet Nam
Philippines
DAP
(CESTT)
AIT
(ISB)
BSMB / DTI
Regional
CESST
China
CPC
Govt.
EMB / DENR
 Impacts
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EMB, DOE
IER
SMEC
• Exchange of information on technology made possible.
• Facilitated Sri Lankan participants visit to Indian industries.

18. 3. SMI Newsletter
 Objective: To disseminate information about the SMI project and other
relevant information on E3ST from other sources
 Target groups : industrial associations, policy makers, financial
institutions, government departments, NGOs, academic institutions, R &
D organizations.
 Total No of Issues: 13 (so far) plus a
 Special Issue : Desiccated coconut
 Website : http://www.serd.ait.ac.th/smi2/smi2.html
Exit Strategy: PSG (India) has now taken over the publishing task of SMI
Newsletter.
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19. SMI Newsletters
http://www.serd.ait.ac.th/smi2/smi2.html
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20. 3. Road Map CD
 Objective :
To provide a comprehensive information about outputs of the SMI project
(Reports, Publications, TFSs, Success Stories, Web sites, etc.) in a most
convenient format for wider dissemination.
 The CD contains:
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Information about the SMI project.
Sector reports (Tea, DC, Brick, Foundry and Textile).
Policy report.
Technology Fact Sheets (E3ST).
All publications (journal papers, articles).
SMI Newsletters.
Success Stories.
Web links.

21. Road Map CD
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22. 4. Achievements/Impacts of the SMI Project
 Establishment of specific energy consumption and pollution loads of selected
industrial sub sectors.
 Data/Information on energy-environmental issues related to SMIs of the studied
sectors.
 Options for improvement of SMIs’ energy-environmental status: E 3STs, policy
options.
 Increased awareness of related actors/beneficiaries about energy-environmental
issues in SMIs.
 Capacity of NRIs and national partners strengthened : research and technical
capacity.
 Capacity of SMIs strengthened : energy-environmental Audit / management skills.
 Networking established: cooperation and information exchange among partners in
each country and among participating countries.
 Developing a technology for environmentally friendly coconut shell carbonization
(Sri Lanka).
 Developing a low cost treatment technique for coconut waste water (Sri Lanka).
 Acquisition of measuring and monitoring equipment (for emission and ambient air
quality).
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23. 4. Achievements/Impacts of the SMI Project
 Improved recognition by State, Private sector and international development
agencies (ADB funded Cleaner Production and USAID funded ESCO
development projects) as a major player in energy and environmental matters.
 Creation of wider business interests focused on the field on energy and
environment.
 SL:Participating in national steering committees on CP and CDM.
 SL: Entrusting the task of writing the chapter on “Environmentally Sound
Technology Transfer for Sustainable Development” for the national report for
Rio+10 world summit.
 NRI (Sri Lanka) is selected as a partner organization under State of Arizona
(USA) Environmental Partnership Programme under USAEP.
 Off-shoot project in Vietnam: improvement of withering trough in tea
processing.
 Offshoot of this project in India: PSG (Indian NRIs) has started a masters and
PhD programme in energy engineering and its energy audit team has got
Government approval to carry out energy audit and certify the SMIs.
 PSG (Indian NRI) has established contacts with Centre for Environmental
Education, which is collaborating with UNIDO in Tirupur and USAID project
on “Reduction of GHG Potential of Knitwear Industry at Tirupur” coordinated
by Ecosmart India.
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24. Thank You.
Any Questions and
Comments ……
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