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Budget Analysis

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Union Budget was presented in the parliament on February 29th, 2016. ICR team has tried to capture the impact of the budget on cement, infrastructure and real estate as viewed by CRISIL Research and various experts in the industry.

CRISIL Budget Analysis
Cement, impact positive
Higher spending on infrastructure to benefit in medium term Positive

Key budget proposals:

  • Investment towards national highways increased by 49 per cent to Rs 1032 billion (budgetary plus internal and extra budgetary resources).
  • Rs 170 billion for irrigation projects under Accelerated Irrigation Benefit Project.
  • Outlay towards urban infrastructure increased 11 per cent to Rs 166 billion.
  • Ready mix concrete manufactured at the site of construction exempted from excise duty.
  • Clean energy cess on coal (domestic and imported) doubled to Rs 400 per tonne.

CRISIL Research?s View:
The government?s focus on infrastructure is evident with the total targeted spending in FY17 increasing 28 per cent over FY16.
This, along with a number of benefits provided on affordable housing, would aid recovery in cement demand. Further, the rise in duties and tariffs in the form of clean cess on coal is expected to have a muted impact on total cost, which is expected to increase 0.2 per cent. Power and fuel cost (~25 per cent of cost of sales) will increase 1 per cent. However, amid rising demand, players will be able to offset this with a hike in prices.

Infrastructure, impact positive
Focus on dispute redressal, tax clarifications to aid investor confidence Positive Key budget proposals:
Budgetary allocation: Total outlay for infrastructure has been increased by 28 per cent to Rs 3.4 trillion (roads, railways and power the biggest beneficiaries). Of this, Rs 1.29 trillion is on account of budgetary support
Roads: Investments for development of national highways is proposed to be hiked 49 per cent on-year to Rs 1032 billion.
This is on the backdrop of spending being 16 per cent lower than FY16 budgeted estimates in the segment
Railways: Total outlay raised by 24 per cent to Rs 1,210 billion. In Railway Budget FY17, there have been numerous announcements for improvement of port connectivity and three new dedicated freight corridors
Airports & ports: No new projects announced barring Rs 8 billion earmarked for greenfield ports and national waterways. Overall, outlay for civil aviation has been reduced by 30 per cent to Rs 44 billion, mainly in line with reduced equity support to Air India
Funding availability: The government has provided flexibility for select state entities to raise capital up to Rs 313 billion by way of bonds across infra segments
Other measures: Dividend distribution tax waiver to be applicable on income distributed from SPVs to INVIT holding entity. Furthermore, a mechanism to renegotiate of contracts and a public utility bill will be introduced to streamline resolution of disputes in infrastructure related construction contracts

CRISIL?s View
The Budget reiterated focus on roads and railways with almost 76 per cent of the incremental government spending (budgetary allocation plus inter and extra budgetary resources) focused on these two segments. Also, the increase in budgetary allocations of Rs 250 billion towards various infra segments were muted compared with Rs 1090 billion in the last Budget.

This clearly reinforces a shift in funding dependence from government outlays to cash flows of government entities and their borrowing capability to drive public investments in the sector.Of the Rs 250 billion incremental budgetary support, almost Rs 130 billion is directed towards railways, followed by Rs 40 billion towards power, Rs 30 billion for urban development and Rs 25 billion, for roads, respectively. Given the targets relating to electrification of villages, the Budget provides a thrust on investments in the distribution segment of power with a 84 per cent on-year increase in planned expenditure for key schemes.

For EXIM-focused sectors such as airports and ports, focus on single window customs clearance, backed by process simplification, is targeted towards de bottlenecking of capacity amid lower budgetary allocations.

The Budget continued to build up investor confidence for investing in infrastructure segments by providing clarity on dividend distribution tax for entities like INVITs and giving confirmation on contract renegotiation and introduction of the public disputes utility bill. This comes at a time when private sector interest in infrastructure development is low and the balance sheets of many developers in the sector remain stretched.

We believe the rise in overall government spends will boost execution of national highway projects to about 5,200 km annually in 2016-17 and create a robust construction opportunity for road and railway engineering procurement & construction companies.

While the Budget provisions are positive, it will continue to put to test the execution capability of implementing agencies such as the National Highways Authority of India and Indian Railways. This comes on the backdrop of overall spending in national highways being 16 per cent lower in FY16 as compared with the allocations. Addressing on-ground issues such as clearances and land acquisition becomes extremely critical to ensure a sharp increase in project execution.

Real Estate:
Affordable housing gets a shot in the arm; commercial realtors also benefit Positive

Key budget proposals:

  • Measures on affordable housing projects

  • Interest deduction limit under Sec 80EE increased from Rs 1 lakh to Rs 1.5 lakh for first-time home buyers (applicable only on loans not exceeding Rs 35 lakh for houses costing below Rs 50 lakh and sanctioned during April 1, 2016, to March 31, 2017) for the entire loan duration

  • Under the Pradhan Mantri Awas Yojana, 100 per cent deduction on profits from housing projects approved between June 2016 and March 2019, and completed in three years of getting approval and satisfying the following conditions, refer to Table 1

  • Service tax exemption on construction of affordable houses up to 60 square meters (646 sq ft) under any central or state government scheme, including public-private partnerships (PPPs)

  • Phasing out of deductions allowed on capital expenditure (other than land, goodwill and financial assets) under Sec 35AD from 150 per cent to 100 per cent w.e.f. April 1, 2017, for affordable housing projects

  • Exemption of dividend distribution tax (DDT) on distribution made by special purpose vehicles (SPVs) to real estate investment trusts (REITs)

  • Revival of national land record digitisation scheme with a funding of Rs 1.5 billion

  • 0.5 per cent Krishi Kalyan Cess on all taxable services

CRISIL Research?s View
Boost to affordable housing – especially tier II and tier III cities

Affordable housing segment has received a shot in the arm with the abovementioned measures and will see increased demand and PPPs in the medium term.

Increase in interest deduction for first-time home buyers will boost demand for homes priced in that bracket. Currently, nearly 40 per cent of the upcoming supply in the 10 major cities tracked by CRISIL Research is priced under Rs 50 lakh. The proportion of upcoming supply in this price bracket in tier II and tier III cities is expected to be even higher.
Refer to Graph 1

Table-1

(sq mt) 4 Metros Other cities
Maximum size of house 30 60
Minimum size of land parcel 1,000 2,000
Other,Within 25 km of municipal limit

However, the phasing out of deductions on capital expenditure will be a dampener to some extent.
Removal of DDT for SPVs distributing income to REITs is a positive for developers with significant exposure to rental-yielding real estate assets.
Digitisation of land records will aid transparency in the real estate sector and help tap foreign capital inflows in the medium to long term.
Krishi Kalyan Cess, applicable for under-construction projects, will hurt the industry marginally.
However, minimum alternate tax will apply.
Union Budget 2016-17 brings hopes of revival for the cement industry

?Rs 97,000 crore of outlay that has been kept for roads and infra by the finance minister is very promising and the industry will get a lot of benefits from this particular allocation of funds,? said Amandeep Gupta, joint CEO of OCL Cement, the flag ship company of Dalmia Group.

Middle and low income groups are benefitted by providing exemption on service tax on construction of affordable home and increase in tax exemption on home loan, a boost to first time home buyers. That makes housing more affordable. Infrastructure being part of the key pillars of the budget is something to look forward to in the long run. With 85% road projects coming back on track.

The industry has also acknowledged that the finance minister?s approach for this budget has been very targeted. ?He has laid a structure for an inclusive growth rather than distributing subsidies,? said Gupta.

The cement sector for quite some time had been asking for the removal of excise duty on ready-made cement, which was 12.5 per cent. The industry among its recommendations to the government has also been asking for the initiatives to lower the tax burden on the industry. In its annual report 2014-15, CMA acknowledged that cement is highly taxed at 60 per cent of ex-factory price, which is even more than the taxes levied on the luxury items.

?Exemption of excise duty on RMC is one of the encouraging moves taken by the finance minister. This step is another value addition in making the budget positive for the cement sector,? said MS Mani, senior director, Deloitte.

Source: ECONOMIC TIMES

Doubled Coal Cess to increase power tariff by 15 paisa/unit
The effort of the NDA government to give enhanced push to clean energy and environment conservation would lead to spiking of power price. The government for the third time in a row increased the cess on coal, lignite and pite production to Rs 400 per tonne to fund clean energy projects.

As the increase in price of coal comes under ?change of law? regulation of the Electricity Act and Tariff Policy, any change in price would be reflected in the final power tariff. As per industry calculations, this would amount to a change of 12-15 paisa per unit in the final power tariff.

Indian power industry consumes close to 500 million tonne of coal annually and with doubling of cess, close to 800 billion units of electricity will witness the impact of increased price of coal.

During the current fiscal, the coal cess collected was around Rs 12,000 crore taking the total to Rs 50,000 crore.

In the last Union Budget, cess on coal was doubled to Rs 200 per tonne. In his maiden budget in July 2014, Arun Jaitley increased it to Rs 100 per tonne from Rs 50 per tonne. The cess is collected as National Clean Energy Fund and is disbursed for renewable energy based initiatives and power projects.

But with the change in name to Clean Environment Fund, it is expected that the fund would be used for environment conservation drives of the government as well.

The heavy weight projects depending on NCEF for their funding are Rs 40,000 crore Green Energy Corridor project and to be launched National Wind Energy Mission, which will entail a total expenditure of Rs 18,000 crore.

Source: BUSINESS STANDARD

Steel, cement to cost more
Shailendra Chouksey, President, Cement Manufacturers? Association, and whole-time director, JK Lakshmi Cement, said cement prices would rise by? 3-4 a bag just on account of the clean environment cess.

?The total tax incidence on cement is over 60 per cent of the ex-factory realisation. The Krishi Kalyan Cess at 0.5 per cent on all taxable services from June 1 will push up production costs further,? he added.

Ready-mix woes
Ready-mix concrete (RMC) players believed that their long-pending demand of exemption of excise duty on RMC plants has finally been addressed but it is applicable only to dedicated RMC plants on site, the percentage of which is almost negligible, said Chouksey.

Ajay Kapur, Managing Director, Ambuja Cements, said while profitability of the cement industry would be impacted by the increase in cess, the excise on HDPE (high-density polyethylene) packaging bags (for 12.5 per cent to 15 per cent) and decrease in sale commission (from 10 per cent to 5 per cent) would add to the industry?s woes.

Source: THE HINDU BUSINESS LINE

Mahendra Singhi, Group CEO-Dalmia Cement in conversation with ICR
The focus of the budget has been on rural India and finance minister has thought ?how to boost up the economy?? Larger attention has been paid to the farm sector. FM?s efforts will have multiplying effect on the economy.

The second important aspect of the budget is allocation for infrastructure. Never before such allocation was done. There are many projects which have been held up and some remedial measures are required to be taken to rescue these projects. Funds have been made available for not just highways but also for ?Pradhan Mantri Gram Sadak Yojana? which is mainly for rural India. The allocation for MNREGA is another positive feature of rural focus.

We were expecting industry status will be given to infrastructure but that did not happen. Irrigation has been provided separate funding which is a long term investment and it is certainly a welcome feature of the budget.

The enhancement of carbon cess to Rs. 400 will have some impact but it is a movement in the direction of Green Energy. It will support generation of Solar and Wind power.

While giving concessions, the budget takes into account affordable housing, rental housing and first time home buyers.The taxation on provident fund withdrawn is some how difficult to digest. It is slightly going against the principles of saving habits.

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Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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Concrete

Filtration Technology is Critical for Efficient Logistics

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Niranjan Kirloskar, MD, Fleetguard Filters, makes the case that filtration technology, which has been long treated as a routine consumable, is in fact a strategic performance enabler across every stage of cement production and logistics.

India’s cement industry forms the core for infrastructure growth of the country. With an expected compound annual growth rate of six to eight per cent, India has secured its position as the second-largest cement producer globally. This growth is a result of the increasing demand across, resulting in capacity expansion. Consequently, cement manufacturers are now also focusing on running the factories as efficiently as possible to stay competitive and profitable.
While a large portion of focus still remains on production technologies and capacity utilisation, the hidden factor in profitability is the efficiency of cement logistics. The logistics alone account for nearly 30 per cent to 40 per cent of the total cost of cement, making efficiency in this segment a key lever for profitability and reliability.
In the midst of this complex and high-intensity ecosystem, filtration often remains one of the most underappreciated yet essential enablers of performance.

A demanding operational landscape
Cement production and logistics inherently operate in some of the harshest industrial environments. With processes such as quarrying, crushing, grinding, clinker production, and bulk material handling expose the machinery to constant high temperatures, heavy loads, and dust, often the silent destructive force for engines.
The ecosystem is abrasive, and often one with a high contamination index. These challenging conditions demand equipment such as the excavators, crushers, compressors, and transport vehicles to perform and perform efficiently. The continuous exposure to contamination across every aspect like air, fuel, lubrication, and even hydraulic systems causes long-term damage. Studies have also shown that 70 to 80 per cent of hydraulic system failures are directly linked to contamination, while primary cause of engine wear is inadequate air filtration.
For engines as heavy as these, even a minor contaminant has a cascading effect; reducing efficiency, performance and culminating to unplanned downtime. Particles as small as 5 to 10 microns, far smaller than a human hair (~70 microns), can cause significant damage to critical engine components. In an industry where margins are closely linked to operational efficiency, such disruptions can significantly affect both cost structures and delivery timelines.

Dust management: A persistent challenge
Dust is a natural by-product in cement operations. From drilling and blasting in the quarries to packing in plants, this fine particulate matter does occupy a large space in operations. Dust concentration levels in quarry and crushing zones often create extremely high particulate exposure for equipment. These fine particles, when enter the engines and critical systems, accelerates the wear and tear of the component, affecting directly the operational efficiency. Over time every block fall; engine performance declines, fuel consumption rises, and maintenance cycles shorten. In this case, effective air filtration is the natural first line of defence. Advanced filtration systems are designed to capture high volumes of particulate matter while maintaining consistent airflow, ensuring that engines and equipment operate under optimal conditions.
In high-dust applications, as in cement production, even the filtration systems are expected to sustain performance over extended periods without the need of frequent replacement. This becomes crucial in remote quarry locations where access to frequent maintenance may be limited.

Fluid cleanliness and system integrity
Beyond air filtration, fluid systems also play a crucial role for equipment reliability in cement operations. Fuel systems are required to remain free from contaminants for efficient working of combustion and injection protection. Additionally, lubrication systems also need to maintain the oil purity to reduce friction and prevent any premature wear of moving parts. The hydraulic systems, which are key to several heavy equipment operations, are especially sensitive to contamination.
If fine particles or water enters these systems, it can lead to reduced efficiency, erratic performance, and eventual failure of the system. Modern filtration systems are designed with high-efficiency media capable of removing extremely fine contaminants, with advanced fuel and oil filtration solutions filtering particles as small as two to five microns. Multi-stage filtration systems further ensure that fluid performance is maintained even under challenging operating conditions.
Another critical aspect of fuel systems is water separation. Removing moisture helps prevent corrosion, improves combustion efficiency and enhances overall engine reliability. Modern water separation technologies can achieve over 95 per cent efficiency in removing water from fuel systems.

Ensuring reliability across the value chain
Filtration plays a critical role across every stage of cement logistics:
• Quarry operations: Equipment operates in highly abrasive environments, requiring strong protection against dust ingress and hydraulic contamination.
• Processing units: Crushers, kilns, and grinding mills depend on clean lubrication and cooling systems to sustain continuous operations.
• Material handling systems: Pneumatic and mechanical systems rely on clean air and fluid systems for efficiency and reliability.
• Transportation networks: Bulk carriers and trucks must maintain engine health and fuel efficiency to ensure timely deliveries.
Across these operations, filtration plays a vital role; as it supports consistent equipment performance while reducing the risk of unexpected failures.
Effective filtration solutions can reduce unscheduled equipment failures by 30 to 50 per cent across heavy-duty operations.

Uptime as a strategic imperative
In cement manufacturing, uptime is currency. Downtime not only delays the production, but it also greatly impacts the supply commitments and logistics planning. With the right filtration systems, contaminants are kept at bay from entering the
critical systems, and they also significantly extend the service intervals.
Optimised filtration can extend service intervals by 20 to 40 per cent, reducing maintenance frequency while maintaining consistent performance across demanding operating conditions. Filtration systems designed for heavy-duty applications sustain efficiency throughout their lifecycle, ensuring reliable protection with minimal interruptions. This leads to improved equipment availability, lower maintenance costs, and more predictable operations, with well-maintained systems capable of achieving uptime levels of over 90 to 95 per cent in challenging cement environments.

Supporting emission and sustainability goals
With the rising environmental awareness, the cement industry too is aligning with the stricter norms and sustainability targets. In this scenario, the operational efficiency is directly linked to emission control.

Air and fuel systems that are clean enable
much more efficient combustion. They also reduce emissions from both the stationary equipment and transport fleets. Similarly, with a well-maintained fluid cleanliness, emission systems function better. Poor combustion due to contamination can increase emissions by 5 to 10 per cent, making clean systems critical for compliance.
Additionally, efficient and longer lasting filtration systems significantly reduce any waste generation and contribute to increased sustainable maintenance practices. Extended-life filtration solutions can reduce filter disposal and maintenance waste by 15 to 20 per cent. Smart and efficient filtration in this case plays an important role in meeting the both regulatory and environmental objectives within the industry.

Advancements in filtration technology
Over the years, there has been a significant evolution in the filtration technology to meet the modern industrial applications.
Key developments include:
• High-efficiency filtration media capable of capturing very fine particles without restricting flow
• Compact and integrated designs that combine multiple filtration functions
• Extended service life solutions that reduce replacement frequency and maintenance downtime
• Application-specific engineering tailored to different stages of cement operations
Modern multi-layer filtration media can improve dust-holding capacity by up to two to three times compared to conventional systems, while maintaining consistent performance. These advancements have transformed filtration from a basic maintenance component into a critical performance system.

Adapting to diverse operating conditions
The cement industry of India operates across diverse geographies. Spanning across regions with arid regions with higher dust levels, to the coastal areas with higher humidity, challenges of each region pose different threats to the engines. Modern filtration systems are thus tailored to address these unique challenges of each region.
Indian operating environments often range from 0°C to over 50°C, with some of the highest dust loads globally in mining zones.
Additionally, filtration technology can also be customised to variations which then align the system design with factors like dust load, temperature, and equipment usage patterns. Equipment utilisation levels in India are typically higher than global averages, making robust filtration even more critical. This approach ensures optimal performance and durability across different operational contexts.

Impact on total cost of ownership
Filtration has a direct and measurable impact on the total cost of ownership of equipment.
Effective filtration leads to:
• Lower wear and tear on critical components
• Reduced maintenance and repair costs
• Improved fuel efficiency
• Extended equipment life
• Higher operational uptime
Effective filtration can extend engine life by 20 to 30 per cent and reduce overall maintenance costs by 15 to 25 per cent over the equipment lifecycle. These benefits collectively enhance productivity and reduce lifecycle costs. Conversely, inadequate filtration can result in frequent breakdowns, increased maintenance expenditure, and reduced asset utilisation.

Building a more efficient cement ecosystem
With the rising demand across various sectors, the cement industry is expected to expand at an unprecedented rate. This growth is forcing the production to move towards a more efficient and resilient system of operations. This requires attention not only to production technologies but also to the supporting systems that enable consistent performance. Filtration must be viewed as a strategic investment rather than a routine consumable. By ensuring the cleanliness of air and fluids across systems, it supports reliability, efficiency, and sustainability.

The road ahead
The future of cement logistics will be shaped by increasing mechanisation, digital monitoring, and stricter environmental standards. The industry is also witnessing a shift towards predictive maintenance and condition monitoring, where filtration performance is increasingly integrated with real-time equipment diagnostics.
In this evolving landscape, the role of filtration will become even more critical. As equipment becomes more advanced and operating conditions more demanding, the need for precise contamination control will continue to grow. From quarry to construction site, filtration technology underpins the performance of every critical system. It enables equipment to operate efficiently, reduces operational risks, and supports the industry’s broader goals of growth and sustainability. In many ways, it is the unseen force that keeps the cement ecosystem moving, quietly ensuring that every link in the value chain performs as expected.

About the author
Niranjan Kirloskar, Managing Director, Fleetguard Filters, is focused on driving innovation, operational excellence, and long-term business growth through strategic and people-centric leadership. With a strong foundation in ethics and forward-thinking decision-making, he champions a culture of collaboration, accountability, and technological advancement.

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Concrete

Cement’s Next Fuel Shift

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Jignesh Kindaria highlights how Thermal Substitution Rate (TSR) is emerging as a critical lever for cost savings, decarbonisation and competitive advantage in the cement industry.

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.
According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.
Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The regulatory push is real
The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.
Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian waste is a different engineering problem
Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.
The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a made-in-India answer
At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.
Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.
Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The investment case is now
The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.
The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.
The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.
The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About the author
Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

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