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Budget Impact | Cement Industry Speaks Out

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Various corporate leaders, analysts and industry associations spoke to INDIAN CEMENT REVIEW after the Union Budget was presented to offer their views on how the recommendations will impact the cement industry.

Dr S Chouksey, President, Cement Manufacturers’ Association
I congratulate the Hon’ble Finance Minister Arun Jaitley on behalf of the Indian cement industry for presenting a Budget which is high on reforms, and will boost the rural economy and uplift the weaker sections of society. The government’s bold steps to usher in poll reforms, curb tax evasion, and the further push to the digital economy are all forward looking. The cement industry is buoyant with the government’s commitment to provide 10 million houses to the homeless or those with kachha houses. The granting of infrastructure status to affordable housing is yet another step which would be looked at positively by the cement industry, though we were expecting the housing sector in general would be granted infrastructure status.

Industry’s concerns on high taxation on the sector, of course, remain and is expected that they will definitely be taken care of while fixing the rates in the GST regime. We welcome the government’s other policy measures, including increasing the fund alloca?tion for infrastructure and particularly that of providing mason trai?ning to 5 lakh persons by 2022. This will increase employment opportu?nities and also bring in more efficiency to the construction sector. The target of 100 per cent rural electrification by April 2018 will bring in development oppor?tunities right up to the core of rural India. Similarly, the thrust on rail mo?dernisation and station redevelopment would also boost the construction sector. This sector has the potential for creation of employment opportunities and the government’s various steps to boost the construction sector will neutralise the unemployment created in some medium and small scale industries due to demonetisation.

Vaibhav Agarwal, Vice President – Research, PhillipCapital
In our opinion, this Budget is the most stru?cturally positive one for the cement sector in the last decade. Although there were no direct announcements by the Finance Minster for the cement sector, a number of his announcements will lead to increased and sustained consumption of cement.

10 million houses by 2019 for the houseless
-This provision will lead to incremental cement demand of ~75 million tonnes over the next two-three years.

100 per cent rural electrification by 1st May 2018
-This implies deeper penetration of development opportunities in rural India in the form of construction of houses and roads; hence a structural positive.

Continued focus on sanitation
-Sanitation coverage in rural India is currently 60 per cent. The budget commentary remained very positive on sanitation projects. In our recent ground checks, we found that sanitation projects are one of the key demand drivers for cement. The continued thrust on such projects will help boost cement demand.

Higher investment in affordable housing and affordable housing being granted ‘Infrastructure’ status will translate into more cement consum?ption for such projects. Grant of infrastructure status means more participation on the supply side by construction companies/contractors/builders and faster execution of such projects.

Fostering a conducive labour environment
Labour issues are one of the key ones in construction projects. Continuous availability of labour is frequently a problem at most sites (most labour is generally migrant). The government’s focus on developing a conducive labour environment will mean labour issues will be sorted out to a large extent, implying smooth execution of projects at construction sites with steady cement consumption. This will also mean the other regular labour concerns for contractors (wages, job benefits) are resolved, which will ameliorate labour migration concerns. In addition, there are a few other announcements in the Budget which will have a positive impact on the industry:

The thrust on rail modernisation/station redevelopment projects and 25 stations going in for redevelopment will lead to material cement consumption.

Similarly, the introduction of the Metro Rail Act and various Metro rail policies will lead to faster and structured execution of such projects, implying better visibility of cement demand.

Further, the Centre has increased investments in the roads sector and 2,000 km of coastal roads have been identified for development. This will lead to more cement demand from road projects. The various airport upgradation/maintenance projects may imply increased cement consumption. Consumption may be even higher if upgradation work involves runways.

Amendment of the Negotiable Instruments Act, 1881
This was one of the key demands from north Indian channel partners and distributors. Northern India is a largely a cash-and-carry economy and issuing post-dated cheques is a normal practice. Trade associations in these regions had approached the government for these amendments.

With this development, the supply chain should be more comfortable with such instruments. We found north India averse to digital wallets and the swipe machine culture, given the 1-2 per cent transaction charges involved. Change in dynamics of affordable housing (30/60 sq mt carpet from 30/60 sq mt built-up area) would lead to larger sizes of such houses, which in turn will mean higher cement consumption.

The ‘Notional Rent Income’ tax on unsold inventory for builders, post one year of receiving the commencement certificate if such houses remain unsold/unoccupied, will means correction in real estate prices/rentals, implying quicker-than-anticipated (though lower) cash flows to builders. The builder will be able to execute projects faster and transparently, implying better cement demand.

Exemption of capital gains tax where land is being pooled for the creation of Andhra Pradesh’s capital city if the person was holding the land as on 2 June, 2014, implies more transparent and faster execution of the capital city and quicker-than-anticipated cement demand. India Cements will be the key gainer followed by Dalmia Bharat, Ramco and other southern cement companies.

Reduction in holding period for considering capital gains tax to two years from three years and change of base year for indexation to 2001 from 1981 reduces the capital gains tax liability. This will mean quicker decisions in the real-estate markets to buy/sell (as the holding period comes down) and will also prompt builders for faster execution of projects, implying more sustained demand for cement from the real estate sector.

The increase in disposable income by a marginal reduction in tax rates in the Rs 2,50,000-Rs 5,00,000 tax bracket to 5 per cent from 10 per cent is a sentiment booster for those within this bracket, aspiring to buy new houses.

In short, the Budget’s overall impact on the cement sector is positive. All cement companies are winners, especially India Cements, Dalmia Bharat, JK Cement, JK Lakshmi Cement and UltraTech Cement.

Sameer Nagpal, CEO – Refractories, Dalmia Bharat Group
For refractories, which are the backbone for core manufacturing sectors like steel and cement, increase in expenditure allocation, particularly in railways, highways and housing should help build demand. I was expecting more for the manufacturing sector in terms of reforms and some specific measures to safeguard domestic manufacturing from cheaper, unreliable imports and that has not happened. Overall, it is a mixed Budget.

Crisil Research
The Budget has had a positive impact on the cement sector with infrastructure investments and affordable housing to drive demand.

Here are the key Budget proposals:
Pradhan Mantri Awas Yojana (PMAY) allo?cation increased by 39 per cent to Rs 290 billion;
Allocation from Ministry of Rural Development increased by 10 per cent to Rs 1.05 trillion in FY18;
Investments in cement-intensive infrastructure segments (excluding power) are up 9.8 per cent to Rs 4.2 trillion. The total outlay towards National Highways is at Rs 1.24 trillion, up 11.1 per cent over the previous fiscal’s revised estimates;
Affordable housing to be accorded infrastructure status.

Crisil’s view:
The increased government spending on PMAY will provide an impetus to the housing segment, which has been fairly muted over the last few years. Further, grant of infrastructure status to affordable housing would facilitate easier access to low-cost finance and thereby support demand.
A 9.1 per cent increase in allocation to rural development and 44 per cent rise in PMAY-Gramin is likely to catalyse growth in cement demand from rural housing, which typically constitutes 35 per cent of cement demand.
Further, increased government spending on infrastructure, especially cement-intensive sectors such as National Highways (up by 11.1 per cent), metros (15 per cent ), and other schemes (e.g., Swachh Bharat up by 27 per cent ), will augment cement sales.

Sundeep Kumar, Executive Director – Corporate Affairs & Communications, Dalmia Bharat Group
It is a positive and decisive Budget coming especially against the backdrop of the Government’s boldest measure of demonetisation. The Finance Minister has spelled out a forward-looking regimen for the infrastructure sector with a total allocation of up to Rs 3.96 trillion. Giving industry status will greatly ease financing for affordable housing. With the Metro rail emerging in cities and railway lines of 3,500 km to be commissioned next, along with tier-II city airports, there is a greater scope for public- partnership to thrive, which will aid construction activity and lead to a boom in demand for cement as well.

Further, enhancing expenditure on National Highways will give the much needed fillip to the cement industry. Overall, with a focus on rural and agricultural development, housing, clean energy, elimination of poverty, providing basic necessities to the farmers, waivers for senior citizens in government schemes and a promise of aiding the Skill India and Digital India campaigns, the government has presented an all-inclusive Budget this time around. On tax reforms, there has been no relief or relaxation on corporate tax for larger corporates, which is disappointing.

Shishir Baijal, Chairman & Managing Director, Knight Frank India
This has been one of the path-breaking bud?gets with far-reaching changes, especially for the real estate sector. It is positive that the real estate sector has come in the central spectrum of the Union Budget. This has come at a time when the beleaguered sector has been looking at measures to boost the sentiments. The real estate sector, which was the hardest hit by demonetisation move, will be one of the major beneficiaries of this Budget.

Prudence in fiscal discipline is welcome and will encourage the RBI to look at a lower interest rate regime that will provide the much-needed fillip to this stressed sector. Increased focus on infrastructure, especially construction of new roads, improvement of existing roads and coastal connectivity, will go a long way to benefit the real estate sector.

Increase in allocation of funds under PMAY (Pradhan Mantri Awas Yojana) shows the focus of the government towards making ‘Housing for All’ a reality by 2020. Providing infrastructure status to affordable housing, a long-standing demand of the real estate industry, will not only bring the cost of financing down, but will also open up additional avenues for developers to raise funds. We believe that the shift in eligibility criteria for affordable housing from built-up area to carpet area will increase the unit size by 20-30 per cent and will offer home buyers the benefit of owning larger units. This will also encourage leading real estate players to enter the affordable housing segment.

The move to reduce the tenure of the Long Term Capital Gains Tax from three years to two years is extremely welcome and will help the marketability of real estate as an asset class. Changes in the taxation aspect of JDAs (Joint Development Agreements) will greatly encourage more land owners to partner with developers that will benefit the real estate developers, and in turn is likely to benefit the end consumers.

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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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