# How to Get a Green Loan for a Ceramic Tile Factory in Morbi

Canonical: https://senseible.earth/climate-intelligence/green-loan-ceramic-factory-morbi

Published 2026-10-13.

Morbi makes most of India's tiles, and it makes them with heat. Every kiln and spray dryer in the cluster burns fuel around the clock, so the price of that fuel decides whether a unit makes money. In 2026 that price moved against the owners twice: gas shortages shut plants in March, and on 2 September Gujarat's gas supplier raised the industrial price for Morbi from ₹79 to ₹90 per standard cubic metre, with an ₹8 discount for long-term users, as DeshGujarat reported. By August, propane made up about 65 percent of the cluster's fuel mix.

The question for an owner is how to finance the projects that use less fuel per square metre, and what a lender needs to see.

## Why Morbi starts from gas, not coal

Morbi already made one forced switch. In 2019, after a National Green Tribunal order, about 450 units running on coal gasifiers closed to move to natural gas. That leaves the cluster with cleaner fuel than many Indian industries, but with a cost base tied to gas and LPG prices. The saving now has to come from using less heat, not from changing the fuel again.

## What sells in Europe, and what Europe asks

Indian tile exports grew 7.6 percent in 2025 to 565 million square metres, with exports to the EU up 11.5 percent, according to Ceramic World Web. Ceramic tiles are not covered by the EU's Carbon Border Adjustment Mechanism, so there is no carbon charge at the border. European distributors and project buyers do ask for product environmental data, though, and a lower energy figure per square metre is the number behind it.

## Projects a green lender understands

- **Kiln and dryer efficiency:** burner upgrades, better insulation, waste-heat recovery from kiln exhaust into the dryers.
- **Rooftop and open-access solar** for grinding, pressing and polishing loads, which run on electricity.
- **Metering:** gas and power meters per line, so savings can be shown rather than estimated.

SIDBI's End-to-End Energy Efficiency product pairs an energy audit and a bankable project report with a concessional loan; commercial banks run green loans for solar and efficient equipment. The Bureau of Energy Efficiency has published a situation analysis of the Morbi cluster that is useful background for any project report.

## What to bring to the bank

1. **Twelve months of gas, propane and electricity bills,** with units consumed, not just amounts.
2. **Production for the same months** in square metres, so fuel per square metre can be calculated.
3. **The audit or supplier quotation** showing expected savings, and how you will meter the result.

Fuel per square metre is also the figure a buyer asks for. Building it once serves both. For how verified records support a loan in India, read [how to get green loans using carbon data](https://senseible.earth/climate-intelligence/how-to-get-green-loans-india-carbon-data), and see the [PNG](https://senseible.earth/emission-factors/png) and [LPG](https://senseible.earth/emission-factors/lpg) emission factors Senseible applies to these bills.

Confirm current eligibility and terms with the lender before you apply.

## Related guides

- [financing a glass furnace in Firozabad](https://senseible.earth/climate-intelligence/finance-glass-furnace-firozabad)
- [green loan for a chemical plant in Gujarat](https://senseible.earth/climate-intelligence/green-loan-chemical-plant-gujarat)
- [ADEETIE scheme eligibility and application](https://senseible.earth/climate-intelligence/adeetie-scheme)
- [green loan for a steel business in Johannesburg](https://senseible.earth/climate-intelligence/green-loan-steel-business-johannesburg)
- [green loan for a foundry in Kolhapur](https://senseible.earth/climate-intelligence/green-loan-foundry-kolhapur)