Environment
The accusations of cartelisation, if any, are totally incorrect and ill-founded
Published
14 years agoon
By
admin
Vinita Singhania, Managing Director, JK Lakshmi Cement Ltd, and President, Cement Manufacturers’ Association (CMA) in an e-interview with Indian Cement Review, explains her priorities, defends accusations and puts forth her suggestions for the growth of Indian cement industry.
Now that the Budget 2011-12 has been announced, what are your priorities for the Indian cement industry?
My main priority for the cement industry is to arrange/mobilise adequate raw materials and infrastructure so that the industry can grow at the required rate to meet the emerging demand of the nation in the next one decade. Indian cement industry today faces acute shortage of fuel for production as well as for its power requirement, wagon for its movement of cement and more importantly, bulk handling infrastructure at the cement unloading/consumption points. Further, since the Budget has not addressed the long pending concern of the industry with respect to the high taxation burden, the priority to sensitise and convince the authorities about the same remains an important item on the Industry’s agenda.
What has the Budget badly missed out, which would have propelled the industry to greater heights?
As mentioned earlier, the issue of high taxation on cement industry which results in high cost of cement to the end-consumers needs to be looked at by the government afresh, recognising that cement is an essential input for the country’s infrastructure development as also for common man’s housing requirement.
The Budget does not incentivise efficient working in the cement industry atleast. Neither it has encouraged the modern method of construction/products like RMC, AAC blocks etc, which are not only environment-friendly but if which encouraged can reduce the load on the country’s resources and infrastructure. Instead of any incentive products like fly ash, slag, RMC are now being subjected to excise rate of one per cent. With imaginative use of taxation on these products their consumption could have been encouraged.
What is your opinion on the reduction in import duty on pet coke and gypsum? What would be its impact on production cost?
Reduction in import duty on pet coke and gypsum is a positive move though the reduction is still only half way meeting the industry’s requirement which faces an anomaly of cement being imported at zero per cent import duty while the import of its raw material was being subject to 5 per cent import duty which has been reduced to 2.5 per cent in the Budget. It can possibly impact the production cost by about one per cent to those units who are dependent on imported coal or pet coke and who are situated closer to the ports. The rest of the cement plants which form a major chunk remain unaffected.
The government has restructured the excise duty by bringing in composite rates having an ad valorem and specific component. What would be its impact on the cement price?
The dual system of excise on cement is now prevalent for the fifth year. The bigger question is not that one of ad valorem vs specific rate. The issue is that since in a commodity like cement post manufacturing expenses are very high, notably that of freight, the excise duty if charged on ad valorem rate, should also have a provision for abatement on such post manufacturing expenses. In fact, the government has been providing abatement to many industries, including white cement. The cement (grey) industry, however, continues to remain deprived of this abatement causing hardship to the industry.
The surcharge limit on corporate tax has been brought down to 5 per cent from 7.5 per cent and the minimum alternate tax (MAT) has been increased to 18.5 per cent from the existing 18 per cent. What would be its impact on the industry?
The reduction of surcharge on corporate tax by 2.5 per cent and increase in MAT rate from 18 to 18.5 per cent has resulted in increase in overall MAT rate by 0.08 per cent and decrease in corporate tax by 0.77 per cent. This has widened the gap by 0.85 per cent in normal corporate tax and MAT rate.
The resultant gap between the normal tax and MAT will negatively impact the capital investments as also the cash flows of companies on MAT.
There is always an accusation of cartelisation in the cement industry, which leads to artificial hike in price. Your comments on this allegation.
The accusations of cartelisation, if any, are totally incorrect and ill-founded.
On one hand, a price hike is announced every alternate week while on the other, the industry faces a serious under-utilisation of capacity. Can you explain this anomaly?
It would be incorrect to say that price hikes are announced every alternate week. For instance, in the area where our company JK Lakshmi Cement operates, we have not seen any price increase from March 2010 to January 2011 though, yes, we did see price declining a number of times. The industry normally faces this dilemma that whenever the prices decline the capacity utilisation also declines. This is understandable as cement prices are a direct off-shoot of demand and supply and whenever the supply increases on account of new capacity creations the overall capacity utilisation falls if the demand is not able to keep pace with the addition in the capacities.
Since the capacity is under-utilised, are there any plans to bolster the export?
The exports this year are at about the same level as last year. Indian cement industry is a marginal player in the international cement trade on account of its high inland cost of transportation. Also in the recent times consequent to the recession of 2008-09 the international demand for cement continues to be at low ebb. The Indian cement industry, therefore, has been finding it difficult to even maintain its previous level of exports.
Coal being the main fuel for the industry, its availability is depleting at a faster rate. How the use of alternate fuel can be encouraged?
Cement industry has been experimenting with alternate fuel for last many years now. Many cement plants in the country, including ours, have taken lead in working with alternate fuel like pet coke, lignite, agricultural waste, biomass, etc. One obvious way to encourage the use of alternate fuel would be to offer excise duty concession to the extent cement produced from the alternate fuel and if that alternate fuel is an industrial waste then the waste generating industry must compensate by some levy mechanism to promote utilisation of such industrial wastes.
With conventional source of energy getting dearer and environmentally risky, how is the industry embracing renewable source of energy?
One of the methods increasingly being resorted to by the cement industry is by greater usage of waste heat from the kilns and convert it into power.
How do you see the acceptance and evolution of blended cement in India?
By and large, the blended cement is now well accepted in many segments of the users. Surprisingly, the greater resistance comes from the public sector or government departments who for reasons best known to them continues to insist on usage of OPC. I feel there would have to be greater intervention by the government to ensure that usage of blended cement is made compulsory.
Cement companies are selling PPC at the same price as they would have sold OPC by adding flyash and hence there is more margin for cement companies in selling PPC. Your comments.
It would be incorrect to generalise that cement companies are selling PPC at the same price as that of OPC. In major parts of our markets, for instance, OPC commands a premium of Rs 15 to 20 a bag over PPC. In the markets where the price gaps are lower cement companies lose by selling more of OPC. In a way it is only appropriate that the cement companies should gain by manufacturing PPC and that is the only way the industrial waste like fly ash, slag, etc can be utilised in greater quantity.
RMC, being value-added product, is still in its nascent stage. What steps can be taken to encourage the use of RMC?
RMC off late in mature market is showing a trend of good growth. We expect this trend to continue and the use of RMC to grow in Tier II and III cities. The industry has to take certain steps to make RMC available, acceptable and affordable to the customers in Tier II and III cities.
Cement demand is driven by the housing market to the extent of 70 per cent and balance by infrastructure, etc. Given the pace of investment happening in infrastructure, do you foresee a shift in demand drivers?
To the best of our judgement, the consumption of cement in building construction is about 60-65 per cent and that would include building for housing as well as for commercial and infrastructure. Clearly, with greater emphasis on infrastructure development there would be gradually higher requirement by the infrastructure sector.
Many cement companies have reported loss in Q3. What are the factors affecting the companies? What remedial measures would you suggest in this regard?
Cement industry in the Q2 and Q3 has faced twin pressures, viz, falling cement prices and increasing cost of production. Fuels, both nationally and internationally, have seen a great upsurge in its prices thereby putting pressure on the cost of production while additional capacities which have created a situation of surplus, impacted the prices negatively.
Do you see mergers and acquisitions happening in near future? Is the cement industry ready for consolidation?
The current level of valuations do not make mergers and acquisitions attractive as the cost of acquiring capacity is higher than the cost of creating new capacity. In the past mergers and acquisitions have taken place as many MNCs who were wanting to establish themselves/or expand in India paid premiums. In immediate future with the current level of valuations I do not see much activity on this front but there could be surprises, I can’t be sure.
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The Indian cement industry has reached a critical juncture in its sustainability journey. In a landmark move, the Ministry of Environment, Forest and Climate Change has, for the first time, announced greenhouse gas (GHG) emission intensity reduction targets for 282 entities, including 186 cement plants, under the Carbon Credit Trading Scheme, 2023. These targets, to be enforced starting FY2025-26, are aligned with India’s overarching ambition of achieving net zero emissions by 2070.
Cement manufacturing is intrinsically carbon-intensive, contributing to around 7 per cent of global GHG emissions, or approximately 3.8 billion tonnes annually. In India, the sector is responsible for 6 per cent of total emissions, underscoring its critical role in national climate mitigation strategies. This regulatory push, though long overdue, marks a significant shift towards accountability and structured decarbonisation.
However, the path to a greener cement sector is fraught with challenges—economic viability, regulatory ambiguity, and technical limitations continue to hinder the widespread adoption of sustainable alternatives. A major gap lies in the lack of a clear, India-specific definition for ‘green cement’, which is essential to establish standards and drive industry-wide transformation.
Despite these hurdles, the industry holds immense potential to emerge as a climate champion. Studies estimate that through targeted decarbonisation strategies—ranging from clinker substitution and alternative fuels to carbon capture and innovative product development—the sector could reduce emissions by 400 to 500 million metric tonnes by 2030.
Collaborations between key stakeholders and industry-wide awareness initiatives (such as Earth Day) are already fostering momentum. The responsibility now lies with producers, regulators and technology providers to fast-track innovation and investment.
The time to act is now. A sustainable cement industry is not only possible—it is imperative.
Concrete
It is equally important to build resilient building structures
Published
17 hours agoon
May 13, 2025By
admin
Manoj Rustagi, Chief Sustainability Officer, JSW Cement, discusses how the adoption of ‘green’ practices in cement manufacturing could reshape the future of sustainable construction worldwide.
Cement is one of the most carbon-intensive materials in construction — but innovation is changing that. As sustainability becomes central to infrastructure, green cement is emerging as a viable low-carbon alternative. In this detailed interview with Manoj Rustagi, Chief Sustainability Officer, JSW Cement, we explore what makes cement ‘green’, its performance, and its future. From durability to cutting-edge technologies, here’s a look at the cement industry’s greener path forward.
What exactly is green cement, and how does it differ from traditional cement?
At this point in time, there is no standard for defining green cement. A very simple way to understand ‘Green Cement’ or ‘Low Carbon Cement’ is the one which emits much lower greenhouse gasses (GHG) compared to conventional cement (Ordinary Portland Cement – OPC) during its manufacturing process.
In India, there are many existing BIS Standards for different types of cement products. The most common are OPC; Portland Pozzolana Cement (PPC); Portland Slag Cement (PSC) and Composite Cement (CC). While OPC emits maximum GHG during its manufacturing (approx 800-850 kg CO2/MT of OPC), PSC emits least GHG (approx 300-350 kg CO2/MT of PSC). As PSC is having close to 60 per cent lower CO2 emission compared to OPC, it is the greenest cement available in the Indian market.
There is already work happening at the central government level to define green cement, like it has been recently done for green steel, and hopefully in the next one year or so the standard definition would be available.
What are the key environmental benefits of using green cement?
The primary environmental benefits of green or low-carbon cement are:
- Reduced CO2 emissions
- Lower energy and power consumption
- Conservation of limestone and fossil fuels
- Utilisation of industrial by-products
- (slag/fly ash)
Can green cement match the durability and strength of conventional cement?
PSC is much more durable than any other type of cement product. It has lower heat of hydration; the strength keeps on improving with time; and it has much higher resistance to chloride and sulphate attacks. Most of the concrete failures are because of chloride and sulphate attacks, which corrode the steel reinforcements and that is how cracks get initiated and propagated resulting in eventual concrete failures. For coastal applications, marine structures, seaports, and mass concreting, PSC is most suitable. Due to the intrinsic durability characteristics of PSC; it is a green and resilient cement product.
Usually everyone talks about lower GHG emissions, but it is equally important to build resilient building structures that can withstand natural calamities and have much longer lifespans. PSC is one cement type that is not only lowest in CO2 emissions but at the same time offers durability characteristics and properties (RCPT, RCMT, Mercury Intrusion, long term strength and flexural strength), which are unmatched.
What innovative technologies are being used to produce green cement?
To further reduce the CO2 emissions in the manufacturing process; some of the innovative technologies which are commercially viable are:
- Alternative raw materials: Use of steel slag, red mud and other industrial by-products to substitute limestone
- Alternative fuels: Use of RDF/MSW, pharmaceutical wastes like biomass etc., to substitute coal/pet-coke
- Waste Heat Recovery (WHR): Power plants to generate electricity from waste heat
- Renewable energy: Solar and wind energy instead of state grid
How cost-effective is green cement compared to traditional options?
All of the above innovative technologies do not increase the cost of manufacturing. There are some future technologies like Carbon Capture, Utilisation and/or Storage (CCUS), which are not commercially viable and would increase the cost of cement. As such, the options available today for low-carbon cement (like PSC) are not expensive.
The Government of India has recently notified Indian Carbon Market (ICM), which also includes the cement sector. Hopefully, this would help progressive companies to further reduce their carbon footprint.
What challenges does the industry face in adopting green cement on a large scale?
There is absolutely no incentive/motivation for builders/contractors to use green cement products and therefore there is practically no demand. While the industry has taken many steps. In fact the Indian cement industry is believed to be most energy efficient globally and has approximately 10 per cent lower GHG emissions compared to global average. But due to lack of awareness and lack of performance based standards; the demand for low carbon cement or green cement has not picked up in India.
Are governments and regulators supporting the shift to green cement?
In India, in the last couple of years, there have been many policy interventions which have been initiated. One of them, namely the carbon market is under notification; others like Green Public Procurement, Green Cement taxonomy and National CCUS Mission are in the advanced stages and are expected to be implemented in the next couple
of years.
How do you see the future of green cement in global construction?
Globally the built environment accounts for 40 per cent CO2 emissions; and the maximum embodied emissions come from cement and concrete. There is a lot of innovation happening in cement, concrete and construction. Basically, how we build and what material we use. And this is to do with both carbon mitigation as well as adaptation as the built environment is so important for sustainable living. Precast and pre-engineered buildings/structures, 3D concrete printing, ultra high performance concrete, digital and AI/ML interventions in construction, admixtures/improved concrete packing; and circularity in cement manufacturing are some examples. Low-carbon cement or green cement eventually will lead to ‘Net Zero CO2 emission’ cement, which would enable a ‘Net-Zero’ built environment that is needed for long term sustainability.

Milind Khangan, Marketing Manager, Vertex Market Research, looks at how India’s cement industry is powering a climate-conscious transformation with green cement at its core, aligning environmental urgency with economic opportunity.
The cement industry produces around eight per cent of the world’s total CO2 emissions. Process emissions, largely due to limestone calcination, contribute 50 to 60 per cent of these emissions and produce nearly one ton of CO2 per ton of cement produced.
India is a leading cement producer with an installed capacity of around 550 million tons (MMT) as of 2024. As the Government of India advances toward its 2070 net-zero target, green cement is becoming a major driver of this shift toward a low-carbon economy. It offers environmental sustainability as well as long-term operating efficiencies at scale. With the fast-paced urbanisation and infrastructure development across the nation, the use of green cement goes beyond environmental imperatives; it is also a strong strategic business opportunity. Indian cement players are some of the most sustainable and environmentally conscious players in the world, and indigenous cement demand in India is estimated to grow at a CAGR of 10 per cent until 2030.
Innovating sustainably
Green cement is an umbrella term that includes multiple advanced technologies and processes aimed at minimising the environmental footprint, and CO2 emissions of conventional cement manufacturing. This shift from traditional practices targets minimising the carbon footprint throughout the whole cement manufacturing process.
- Clinker substitution: Substitution of high-carbon clinker with supplementary cementitious materials (SCMs) in order to considerably lower emissions.
- Alternative binders: Developing cementitious systems that require minimal or no clinker, reducing reliance on traditional methods.
- Novel cements: Introducing new types of cement that depend less on limestone/clinker, utilising alternative modified processes and raw materials.
- Energy efficiency and alternative fuels: Optimising energy utilisation in production and substituting fossil fuel with cleaner alternatives coming from waste or biomass.
- Carbon capture, utilisation, and storage (CCUS): Trapping CO2 emissions at cement plants for recycling or geological storage.
Drivers and strategic opportunities
Robust infrastructure development pipeline: The government’s continued and massive investment in infrastructure (roads, railways, housing, smart cities) generates huge demand for cement. Crucially, there is a growing preference and sometimes direct requirement under public tenders for sustainable building materials, including green cement, which is giving a significant market stimulus.
India’s national climate commitments (NDC and Net Zero 2070): India’s commitments under the Paris Agreement (NDCs) and the long-term goal of achieving Net Zero emissions by 2070 have set a clear direction for industrial decarbonisation. This national strategy necessitates action from high-emitting sectors such as cement to adopt green cement technologies and carbon-reducing innovations across the construction value chain. Notably, the Indian cement industry alone is expected to generate nearly 400 million tonnes of GHG emissions by 2030.
Regulatory mandates for fly ash utilisation: The Ministry of Environment, Forest and Climate Change (MoEFCC) has released a number of binding notifications that promote the use of fly ash from thermal power plants. These guidelines seek to reduce environmental impact by enhancing its extensive application in cement production, particularly in Portland Pozzolana Cement (PPC). Fly ash acts as a pozzolanic material, reacting with calcium hydroxide to produce cementitious compounds, hence decreasing clinker consumption, a high-energy component contributing to high CO2 emissions. Through clinker substitution facilitation, such mandates directly enable the production of low-carbon green cement.
Promotion and utilisation of blast furnace slag: Steel plant slag utilisation policies provide a ready SCM for manufacturing Portland Slag Cement (PSC). This is advantageous in terms of the supply of another key raw material for green cement manufacturing.
Increased demand due to green building movement
The larger adoption of green building codes and certification systems such as GRIHA and LEED India by builders and developers promotes the use of materials with reduced carbon content. Cement products with a higher SCM content or produced through cleaner processes are preferred. A step in this direction was achieved in October 2021 when Dalmia Cement achieved the distinction of being the first Indian cement producer to be granted the Green Product Accreditation of GRIHA.
The Indian industry is actively investing in R&D for new binders such as geopolymer cement, alkali-activated materials and limestone calcined clay cement (LC3). Research institutions including IIT Madras are collaborating with industry to scale these technologies. Although Carbon Capture, Utilisation, and Storage (CCUS) is still at a nascent stage in India, it represents a potential frontier for long-term decarbonisation in the cement sector.
The MoEFCC has published draft regulations under the Carbon Credit Trading Scheme (CCTS), 2023, in the form of the Greenhouse Gas Emission Intensity Target Rules, 2025. The draft notification requires 186 cement units in India to lower their GHG emission intensity from FY 2025-26. Non-compliant manufacturers will have to purchase carbon credit certificates or face penalties, creating a clear regulatory and financial incentive to adopt cleaner technology. The CCTS will promote technology and practice adoption that reduces the carbon intensity of cement manufacturing, potentially resulting in the use of green cement and other low-carbon substitutes for cement.
India’s leading cement companies like UltraTech, Shree Cement, and Dalmia Bharat have made science-based targets and net-zero emissions pledges in line with the GCCA 2050 Cement and Concrete Industry Roadmap. These self-declarations are hastening the shift towards clean cement manufacturing technology and renewable energy procurement.
Challenges and complexities in India’s green cement transition
Economic viability and cost challenges: High production costs associated with low-carbon cement technologies remain a significant hurdle. The absence of strict carbon pricing and poor financial incentives slow down rapid uptake on a large scale. Although green cement is currently costlier than conventional options, greater market adoption and scale-driven efficiencies are expected to progressively narrow this price gap, enhancing commercial viability over time. As these technologies mature, their broader deployment will become more feasible.
Inconsistent supply chain of SCMs: A dependable supply of high-quality Supplementary Cementitious Materials (SCMs), such as fly ash and slag, is crucial. But in the course of decarbonisation of India’s power generation and industry sectors, SCMs reliability and availability may become intermittent. Strong, decentralised logistics and material processing units must be developed in order to provide uninterrupted and economical SCM supply chains to cement producers.
Gaps in technical standards and performance benchmarks
Although PPC and PSC are well-supported by existing BIS codes, standards for newer materials such as calcined clay, geopolymer binders and other novel SCMs require timely development and updates. Maintaining steady performance, lasting robustness, and usage dependability in varying climatic and structural applications will be key to instilling market faith in other forms of cement formulation. Market stakeholders are also supporting separate BIS codes for the green cement sub-categories for helping to build and sustain standardisation and trust.
Scaling of emerging technologies
Scaling promising technology, especially CCUS, from pilots to commercial scales within the Indian context involves significant investment of capital, technical manpower, and a facilitating regulatory environment. The creation of infrastructure for transportation and long-term storage of CO2 will be critical. While these facilitative systems are implemented, cement makers will be well-placed to decarbonise their operations and achieve national sustainability goals.
The way ahead
The Indian cement industry is poised to enter a revolutionary era, where decarbonisation and sustainability are at the heart of expansion. Industry players and the government need to join hands in an integrated manner throughout the cement value chain to spearhead this green revolution. Cement companies must embrace new technologies to lower the emissions like the utilisation of alternative fuels like biomass, industrial wastes, and recycled materials and utilisation of waste heat recovery systems to make energy efficient. The electrification of logistics and kilns, investigation of high-heat alternative products, and CCUS technology investments must be made to decarbonise production. Sophisticated additives such as polymers can improve cement performance with reduced environmental footprint.
At the policy level, the government has to introduce support measures such as stable carbon pricing, tax relief, viability gap funding, and initiatives such as the PLI scheme to encourage the use of renewable energy in cement manufacturing. Instruments such as carbon contracts can stabilise carbon credit prices and reduce market risk, encouraging investment in low-carbon technologies. Updating BIS standards for newer green cement formulations and SCMs is also critical for market acceptance and confidence. Green cement mandates in public procurement and long-term offtake contracts have the potential to generate stable demand, and green financing windows can guarantee commercial viability of near-zero carbon technologies. Cement greening is not a choice, it is a necessity for constructing a climate-resilient, sustainable India.
About the author:
Milind Khangan, Marketing Manager, Vertex Market Research, comes with more than five years of experience in market research and lead generation. He is responsible for developing new marketing plans and innovations in lead generation, having expertise in creating a technically strong website that generates leads for startups in market research.

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