Economy & Market
Emerging trends & challenges in Indian cement industry
Published
14 years agoon
By
admin
Cement companies put up capacities in excess of demand in anticipation of increased consumption of cement on account of expected hike in government spending, which did not materialize. N. A. Viswanathan, Secretary General, Cement Manufacturers’ Association dwells on the issues dogging the cement industry and spells out what needs to be done by the government to tackle these issues.Cement industry, which has a direct co-relation of 1.1 to 1.2 with GDP, plays a pivotal role in the infrastructure development of the country. Buoyed with various infrastructure policies and schemes of the government, particularly after 1982 (partial decontrol) of cement, this industry had added substantial cement capacities year-after-year, much ahead of the actual cement demand taking place. However, the overall slowdown in the economy at 6.5 per cent in FY12, which further contracted to 5.3 per cent in the Apr-Jun quarter of 2012, one of the lowest in nine years, resulting in dampening construction activities, weakening of the rupee value against dollar and higher interest rates of borrowings, to quote a few, have made a severe dent on the growth of the cement industry, from an average growth of around 10 per cent in the last couple of years to a low growth of 5 per cent in FY11 and 6.3 per cent in FY12 respectively. For no fault of theirs, the cement industry has recently been criticised and also harshly penalised for under-utilising the cement capacity, without appreciating the ground realities and the factors which have contributed to reduced capacity utilisation. Today, because of the huge mismatch between demand and supply of cement, the country is having about 93 million tonnes of excess cement capacity created after making colossal investments. To revive the economy from its present slackening mode, it is now imperative for the government to enh-a-nce cement demand by taking some positive and concrete policy measures.The backgroundThough the cement industry has been in existence since 1914, appreciable growth in the cement production has been witnessed only after the introduction of partial decontrol in 1982 culminating in total decontrol in 1989 and delicensing in 1991. With the implementation of liberalisation policies of the government in 1991 followed by government’s thrust on infrastructure development in the country, the pace of the growth of the cement industry has been unprecedented.Exponential GrowthThe burgeoning growth of the industry can be gauged from the fact that for creating the first 100 million tonnes capacity, prior to partial decontrol era, the industry took 83 long years, whereas to reach the second and third 100 million tonnes mark, the period had substantially shrunk to 11 years and less than 4 years, respectively (see chart). Cement capacity which was 64.55 million tonnes in 1990-91 reached 340.44 million tonnes in 2011-12. Similarly, cement production went up from 48.90 million tonnes to 247.32 million tonnes during the same period.World Class IndustryIndia is the second largest cement producing country in the world, next only to China both in quality and technology. It produces about 7 per cent of the global production. In 2010, world production of cement was 3294 million tonnes. It is a matter of concern that even after attaining the second position, our per capita cement consumption is very low at 180 kg., which is much below the global average of 450 kg. (see table).Per capita consumption of cement is accepted as an important index of the country’s economic growth. Hence, there is enough potential to enhance our per capita cement consumption to match with the world average.With the adoption of massive modernisation and assimilation of state-of-the-art technology, Indian cement plants are today most energy-efficient and environment-friendly and are comparable to the best in the world in all respects, whether it is kiln size, technology, energy consumption or environment-friendliness. Industry has progressively reduced its energy consumption from 800-900 kwh/tonne clinker in 80s to 650-750 kwh/tonne clinker now. Similarly, power consumption registered a remarkable improvement from 105-115 kwh/tonne cement to 70-90 kwh/tonne cement during the said period. Presently, about 99 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology. Cement industry has now been making sincere efforts to utilise waste heat recovery in the plants.Problems plaguing the industryThere are a number of constraints and bottlenecks which are hindering the growth of this core sector industry. A few of the major concerns of the industry are discussed below:Excess cement capacity: Cement industry has been experiencing glut situation as there has been mammoth mismatch between cement demand and its supply. The industry had created the capacity on the back of government’s projection of potential cement demand arising out of the thrust given for infrastructure development in the country and the allocation of funds earmarked for the purpose. However, the cement demand, as projected, has not materialised, despite the capacity having been created well in advance after making huge investments.Acute shortage of coal: Coal is one of the major raw materials needed by the industry both in the manufacturing of cement and also for generating power. In the last couple of years, there has been a steep drop in the supply of linked coal to the cement industry from 70 per cent in FY04 to almost 39 per cent now, mainly due to diversion of coal to the power sector. Cement companies, therefore, have perforce to resort to either open market purchase or imported coal which works out to nearly 2 to 2.5 times higher than the domestic price or use of the alternate fuel like pet coke, lignite, etc. which also adds up significantly to the additional cost of production. What is worse, new capacities are not being given any coal under the Linkage Scheme and therefore there is a real fear that the shortage of the main fuel, with no assurance of its availability in future, may actually hamper the required capacity additions for future build up. With the increasing cost of coal and other input materials such as diesel, etc. the production cost of cement has gone up significantly.Inadequate availability of wagons: Rail is the ideal mode of transportation for cement industry. However, it has always been plagued by the short supply of wagons, particularly during the peak period. In addition to this, infrastructure constraints and also not factoring the points of view of the cement industry, which is one of its largest consumers, in the policies of the railways have been hampering the planned movement of cement to the consumption centres, adversely impacting the production schedule and also increasing the overall transportation cost of cement. Rail share for cement which was 53 per cent a couple of years back has come down to 35 per cent now, which is a matter of great concern both to the cement industry and the railways.Cement highly taxed: Although cement is a high volume low value product, it is one of the highly taxed commodities (60 per cent of the ex-factory price), even more than luxury goods. This is exclusive of the freight transportation, which is about 20 per cent of the operating cost. The levies and taxes on cement in India are far higher compared to those in the countries of Asia-Pacific region or even compared to the developing economies like Pakistan and Sri Lanka. Cement and steel are two major materials needed for construction of any infrastructure. However, it is ironic that the rate of VAT charged on cement and steel differs vastly. While the value-added tax (VAT) on steel is only four per cent, it is 12.5 per cent on cement/clinker which goes up to even 15 per cent in some of the states.Steep fall in cement exports: With the high incidence of government levies, infrastructure constraints at ports and the regulatory policies of the government providing encouragement for import of cement with nil custom duty, the export of cement and clinker from India has been steadily and continuously declining from 9 million tonnes in FY07 to 3.5 million tonnes in FY12, despite the fact that Indian cement industry is presently having the substantial excess capacity of cement and clinker.Use of fly ash unviable: Cement industry’s initiative and investment to the tune of more than Rs 1000 crore for effectively utilizing the industrial waste fly ash, which was otherwise posing a nuisance as a health hazard, has helped the thermal power plants in addressing and tackling the menace of fly ash related health and environmental hazards. However, power plants which had been earlier supplying fly ash to the cement industry free of cost have for the last couple of years, as per the order of the Ministry of Environment and Forests, started charging for fly ash from November 2009. The order has also made it mandatory for the cement plants having captive power plants to supply 20 per cent of the fly ash generated as free of cost to the small scale brick manufacturers, etc. within the vicinity of 100 kms of their plants. Both these have severely impacted the production cost of cement and also seriously threatened the fly ash recycling potential in the country.XII Plan – cement demand projectionsAs per the report submitted to the Planning Commission recently by the Working Group on Cement Industry for XIIth Plan, the country’s cement production and capacity is estimated to surge from 247.32 million tonnes and 340.44 million tonnes respectively in FY12 to 407.4 million tonnes and 479.3 million tonnes respectively by FY17.Future OutlookThe slackening economy will take at least one or two years to bounce back to its earlier level. This would, as a thumb rule, apply to the cement industry also. Since India has been emerging as one of the fastest growing economies in the world, the future outlook for cement looks to be bright, provided government formulates facilitating growth oriented policies so that our per capita cement consumption matches with at least with some of the developing economies.Measures for stimulating cement demandIt is imperative to bring back this core cement industry on higher and faster growth trajectory by revival of cement demand through faster growth of infrastructure sector, including roads, ports, airports, housing, irrigation projects, and so on. This would be possible particularly by bringing out more encouraging schemes for affordable housing with income tax relief and by constructing long-lasting cement concrete roads and adopting cement concrete canal lining to conserve 50 per cent precious water that presently seeps through our unlined canals. Water thus saved can be effectively utilized for our agriculture and other needs. The government’s long cherished ‘dream’ to provide ‘world-class standard roads’ can be fulfilled only if cement concrete roads and white topping (a technology on which a concrete layer is laid on the existing bitumen road) are adopted in the country on a larger scale. It is a well-established fact that cement concrete roads are long-lasting, maintenance-free for 30-40 years and today, in most of the cases, are even economical than bitumen roads in the construction stage itself and are, therefore, much-needed for the exponential growth of our economy. Further, cement roads can simultaneously resolve, without entailing any extra financial cost, a number of national issues and problems the government is grappling to find solutions even after spending thousands of crores of rupees every year. The problems which would be addressed are – (a) conservation of diesel and petrol up to 14 per cent as heavy load carriers consume less fuel on concrete roads than while plying on bitumen roads (b) preservation of precious foreign exchange being spent on the import of bitumen used in the construction of roads (c) utilization of fly ash up to 35 per cent, disposal of which is a nuisance and health hazard (d) conservation of 10 per cent electricity used for the street lights (e) protection of our quarries and mines and above all (f) generation of substantial downstream employment.Coal supply and wagon availability to the cement industry, which have become very acute and uncertain in the recent past, needs to be assured on a consistent and regular basis to the cement industry to facilitate it to meet the projected cement demand of the country.Further, 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 electricity, diesel and railway freight in a gradual manner. The government can also consider classifying cement as "Declared Goods" like steel having a uniform VAT rate of 4 per cent throughout the country. The overall taxation value on cement can be brought down to a level of 20-25 per cent of ex-works selling price from the current level.Tax incentive should also be pro-vided by the government for pro-moting blended cement in the larger interest of mineral conservation, waste utilization and bringing down carbon emission.Above all, level playing field needs to be provided to the domestic manufacturers to encourage cement and clinker exports by re-imposing custom duty on cement, which is nil at present. Additionally, Ready Mix Concrete (RMC) needs to be encouraged leading to bulk supply of cement and consequent reduction in pack-aging cost.It is a matter of record that even during the worst phase of economic slow-down, the Indian cement industry has surprised the economy watchers by its pace of sustained growth bucking the general trend of negative or slow growth of economy and the industry sector. It is, therefore, not too optimistic to presume that if the suggested measures are implemented, the cement industry will not only become a leader amongst the various sectors of the industry but will also emerge as a showpiece of model infrastructural growth contributing, in turn, to economic growth.
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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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Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa
Nuvoco Inaugurates Limla Cement Plant in Surat
Nuvoco commissions Surat grinding unit
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