Economy & Market
Indian Cement Industry: The year gone by and the challenges ahead
Published
15 years agoon
By
admin
Though the year 2011 has been bumpy for the Indian cement sector, demand growth for the sector is likely to bounce back given the positive outlook of the general construction and infrastructure sector. The main impediments which have impacted the industry are the recent devaluation of the rupee and bank funding becoming costlier for the industry. This has led to a rise in import & input costs for the company in the form of freight and logistics cost. Read on to know the journey of the Indian Cement industry in the current scenarioIndia is the second largest producer of cement in the world after China and the Indian cement industry has seen a tremendous boom during the last few years in sync with the booming Indian economy. However, the fiscal 2011-12 saw the Indian economy suffering a setback due to an increase in inflation, spiking interest rates and a surge in the prices of commodities and fuels alongwith a devalued rupee. A lull has also been observed in the country’s housing sector, which accounts for over 60-70 percent of the country’s cement demand.Pervasion of a negative sentiment in the Indian Economy :As per the monthly "Economic Watch for November 2011" brought out by the Federation of Indian Chambers of Commerce and Industry (FICCI), the country’s economic growth is expected to slump to 6.6-6.8 percent in the financial year 2011-12. This projection by the industry’s apex body comes in the wake of the Indian government having lowered the country’s GDP growth forecast from the originally projected 9 percent to 7.25-7.75 percent. A poor performance by the mining, manufacturing and capital goods sectors resulted in a 5.1 percent on year contraction in the country’s industrial production in October in over two years. The growth of India’s GDP in the July-September quarter was pegged at 6.9 percent, the lowest in two years on account of the weak global fundamentals and a tight monetary policy by the government. The export sector is also likely to witness a moderation given the bearish fundamentals gripping the world economy. The situation has been complicated further by a widening trade deficit in the current fiscal. Exports for the April-November period increased by 33.2 percent on year to $ 192.7 billion while imports rose by 30.2 percent on year to $ 309.5 billion.A gloom has also been witnessed in the investment climate of the country with a slowdown in the housing and construction industry, which are critical demand drivers for the cement industry. This view was further emphasized by Jayram Nambiar, Ex Managing Director, Pfeiffer India Pvt Ltd who stated, "there has been a substantial reduction in private investments in major capital projects in 2011. There has been low government expenditure on public projects and a fall in investment levels in the housing and construction industry. The cement industry is unlikely to see a revival in demand to the tune of 8-9 percent for some time."Indian Cement Industry : The year that wasThe negative sentiment in the economy has also found its reverberations in the cement sector.Jayram Nambiar, Ex Managing Director-Pfeiffer India Pvt Ltd has concurred "as per a report by the CMA, the country produced 98.81 mt of cement in April-October 2011 which is only 1.2 percent higher than 96.75 mt produced in 2010. A slowdown in demand for cement has been noticed from the housing industry and if the trend continues, the annual growth in demand for cement will remain in the range of 3 per cent on a year on year basis , in 2011-12". The year 2011 also witnessed low cement capacity utilizations compounded by a fall in capacity additions. It was further observed that inspite of an oversupply situation, increased cost of inputs such as fuel and commodities led to a rise in prices of cement across India. Commenting on the capacity parameters for the cement industry, Umesh Shrivastava, Executive Chairman, Holtec Consulting Private Limited stated, "the average capacity utilization, over the year is likely to be in the range of 70-75 percent, which despite being low, is pegged at a level higher than the breakeven point of 50 percent. A slowdown has also been observed in capacity additions, with only 12-13 mtpa of capacity commissioned till now. A capacity addition of around 30 mtpa was expected to come onstream in the period April 1, 2011-31 March 2012." The industry was expecting the installation of around 15-20 mtpa of capacity in 2011. However, a difference in value perceptions between prospective sellers and buyers led to the prospect remaining unrealized. As compared to a peak cycle witnessed during FY 2007-08, cement industry utilization rates witnessed a downslide in FY 2011-12. Commenting on this aspect, Sumit Banerjee, Vice Chairman, Reliance Cementation augured, "the cement sector is cyclical in nature and continues to witness peak and trough cycles. Following a peak capacity utilization rate of 98 percent in FY08, the industry witnessed a down cycle with utilization rate falling to 74 percent in FY 2011-12. Hopefully, this should be the bottom of the cycle with the utilization rate expected to record an improvement to 76 percent in FY 2012-13 and further to 79 percent in FY 2013-14."A moderate 3.1 percent year on year growth in dispatches was recorded by the Indian cement industry in FY 2011-12, following a year on year increase of 4.5 percent in FY 2010-11. The bleak scenario was a result of muted demand, especially in the Southern Indian state of Andhra Pradesh due to political instability. Demand growth for cement in fiscal 2011-12 was expected to remain lower at 4.5 percent due to a slowdown in the economy, sluggish growth in infrastructure and real estate projects and a low momentum in government sponsored housing and irrigation schemes.Cost pressures also added to the woes of the cement industry in this fiscal. There was a rise in limestone mining costs due to a hike in prices of diesel in June 2011. Heavy monsoons in the coal mining areas also forced cement companies to import coal at inflated price levels due to a fall in the value of the rupee. High input costs coupled with a fall in demand led to a pressure on the margins of companies. Commenting on the cost factor, Sumit Banerjee, Vice Chairman, Reliance Cementation said, "severe pressure has been exerted over cement production costs over the last two years. The underlying reason behind the same was an increase in costs incurred on raw material, fuel and power, and freight costs which account for around 70 percent of the overall costs for the manufacture of cement. This has affected the operating margin of the industry, which has gone down significantly inspite of higher cement prices."The year can also be noted for technological developments which included waste heat recovery systems and utilization of lower grades of limestone for making clinker. Positive moves were also witnessed on the part of stronger players in the domestic cement arena who tried to establish production capacities outside India and acquire sources for solid fuel.The road aheadThe future largely appears bleak for the cement industry in the fiscal 2012-13 due to prevalent weak economic fundamentals. Commenting on the adversities likely to be faced by the industry, Jayram Nambiar, Ex Managing Director, Pfeiffer India Pvt Ltd said, "looking ahead, the economic scenario the world over and in India is anti growth and the worst is yet to come. The problem in India has been compounded by the current unfavorable political climate. The coming general election is unlikely to lead to the emergence of a strong political party or coalition. The growth levels of 2008-09 are not likely to be witnessed over the next two years. The period is also likely to be tough for the cement industry. The industry will have to deal with problems like rising energy costs compounded with the depreciation of the rupee, higher freight and distribution costs and low price realizations due to weak demand." These problems shall further be exacerbated by a rise in labour costs due to inflationary trends and a rise in the cost of living index. However, price levels for cement cannot be expected to increase much due to high unutilized capacity far in excess of demand likely to prevail in 2012 and 2013. However, it should be noted that additional cement capacity of 20 million mtpa is being implemented and will be commissioned in 2012. If sufficient demand exists, a capacity utilisation of more than 85 percent is easily achievable. The weak economic climate will also have an impact on smaller cement producers and their operations, leading to a spate of consolidations. Concurring on this issue, Nambiar reiterated, "presently, 35 percent of the cement production capacity is in the hands of smaller producers for whom the future will be one of tribulation due to unfavourable economic conditions. The next two years will see a period of consolidation in the industry with the smaller players withdrawing from the industry by selling out to the financially stronger cement producers. Their share of the total cement capacity can be expected to increase to over 70 percent by 2014."Being a huge country, there will be a difference in the region wise demand for cement in the country which is broadly divided into the western, eastern, northern and southern regions. Elaborating on this aspect, Sumit Banerjee, Vice Chairman, Reliance Cementation stated, "demand for cement in the South is expected to go southward by 4 percent in FY2011-12, display lower than average growth at 5 percent in FY2012-13 and bounce back sharply in FY2013-14. A rise in growth will be witnessed by the Eastern and Central regions from the lower than average levels of 6 percent in FY2011-12 to 9 percent in FY2013-14. Demand for cement in the Northern region is expected to remain in the range of 7-9 percent while the Western region will show demand in the 10 percent range till FY2013-14."Reiterating on the capacity utilization differentials across different regions, Banerjee stated, "a moderation is expected to set in the average industry capacity utilization rate to 76 percent in FY2012-13 from 79 percent in FGY2010-11 before showing an upward curve to 79 percent in FY2013-14. The highest capacity utilization rates are likely to be witnessed by the Eastern and Northern regions at 90 percent levels in FY2012-13 while higher capacity additions could lead to a fall in capacity utilizations in Central India. Utilization rates are also likely to be impacted in the Western region due to pressure exerted on account of cement supply from Southern India."The industry is also optimistic that demand for cement will surge in the near future through the revival of economic activity by the government especially through investment in infrastructure projects. Expressing confidence that the government will initiate the demand push process, Umesh Shrivastav, Executive Chairman, Holtec Consulting Private Limited stated, "following the slump of 2011, demand for cement is likely to see a recovery process and will touch levels of 6-8 percent in 2012. The increase in growth will be triggered by the government’s drive to revive economic activity by initiating investment in infrastructure projects. A correction is foreseen in interest rates and improved regulation as regards land acquisition and environmental clearance leading to revival of several on-hold projects. Cement prices are likely to maintain an upward curve due to increasing production and ownership costs alongwith lower capacity utilizations."Challenges & Opportunities for Indian Cement Industry during 2012 onwards:The forthcoming year 2012 for the Cement Industry is likely to see more of consolidation but lower growth rate. The challenges and opportunities may be summarized as follows:??Extraordinary delay in mining lease sanction and delay in land acquisition & MoEF clearance.??Non availability of domestic coal clubbed with poor quality. Hence, industry has to depend upon high cost imported coal. ??Depreciation of Indian currency has further increased the cost of imported coal, Fuel, Gypsum & other raw materials.??Continuous hike in power tariff, due to increase in coal cost & cross subsidy. Though captive power plant appear to be a part solution, but CPP is again depending upon coal supply linkage, which is uncertain.??On top of it, total taxation including excise, VAT, royalty and cross subsidy amounts to approx. 39 – 40% of Ex-works sales realization. Cement being mass consuming item, such high taxation needs re-visit.??Low packing rate and low level of dispatches leading to IR – Labor issues as per the applicable rules & norms of wage board.??Cement Plant being a capital intensive unit, high interest cost is another disincentive for fresh investment in the sector.??Reduced spending on Government Projects and Slow down in infrastructure investment is another cause of worry for fresh investment.Some of the Indian Economy Strong Points & Stimulators relating to Cement Industry??Growing population of currently 1.2 billion with increasing spending power??Government pursuing structural reforms, facilitating pan-Asian trade, increasing FDI inflows??Recent push at Prime Minister’s level for large infrastructure projects such as Highways, Roads, Ports, Railways, Power, Housing, etc. ??Requirement of Accelerated industrialization to cater to infrastructure and consumer markets??India’s economic growth based on reforms and economic liberalization likely to sustain on long term basis.Measures to be implemented for stimulating cement demand:In order to stimulate demand in an already sagging industry, the government needs to initiate certain measures in the form of providing tax incentive to the industry, reduce the overall tax value on the commodity and phase out cross subsidy on supportive components. The government can also consider classifying cement as "Declared Goods" like steel having a uniform VAT rate of 4 percent throughout the country. To throw light on the matter further, P.K.Ghosh, Chairman, Ercom Engineers Pvt Ltd Ercom Group said, "the overall taxation value on cement can be brought down to a level of 20-25 percent of ex-works selling price from the current level. Tax incentive should be provided by the government for promoting blended cement in the larger interest of mineral conservation, waste utilization and bringing down carbon emission. Cross subsidy burden on electricity, diesel and railway freight should be phased out in a gradual manner. The supply of superior quality coal should be increased through merchant mining in private sector. Companies who have been allotted captive coal blocks should be asked to increase production for selling in the open market."Cement manufacturers need to maximize production of blended cement by utilizing industrial waste like fly ash and slag for conserving mineral resources. The current average blending ratio in the country is pegged at approximately 27 percent which needs to be increased to 40 percent over the next 4-5 years. High energy consuming old and inefficient equipment needs to be replaced with modern equipment for optimizing and minimizing energy consumption alongwith increasing capacity. The industry needs to adopt the latest technology for Green Cement grinding for reducing clinker consumption and deriving benefits of carbon credits. Ready Mix Concrete (RMC) business may be promoted by cement companies or small companies should be encouraged to undertake RMC business at various locations, leading to bulk supply of cement and consequent reduction in packaging cost.ConclusionIn a nutshell, the government needs to support the cement industry in reviving its fortune through initiatives like reducing tax burden, providing incentives and ensuring availability of superior quality coal.
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Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
1 week agoon
July 13, 2026By
admin
Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.
Surat (Gujarat)
Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.
Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.
Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.
The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.
The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.
Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”
He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”
Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.
Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.
Concrete
Green Construction Through Cement Innovation
Published
3 weeks agoon
July 2, 2026By
admin
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
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Concrete
Indian Railways Plans Green Fly Ash Transport Network
Published
4 weeks agoon
June 27, 2026By
admin
Specialised rail logistics will move fly ash from power plants to infrastructure industries.
New Delhi
Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.
The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.
India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.
The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.
Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.
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