Technology

Bringing the entire supply chain into the system will be a challenge

Published

9 years ago

June 30, 2017

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The fundamental aspect of GST is the seamless flow of input tax credit along the entire value addition chain, believes Amman Devralia, Executive Director (Whole Time Director) and Head of Finance, IT & Administration, Humboldt Wedag India Private Ltd.

Is the GST rate of 28 per cent for cement appropriate, given its status of being an important input for infrastructure and housing industry?
Given the Government’s focus on developing infrastructure and affordable housing, a lower GST rate for cement would have certainly benefited the infrastructure and housing industry.

What are the biggest worries on the readiness of the supply chain in the cement industry, which is multi-layered, and the evolving rules?
Bringing the entire supply chain into the system will be a challenge. The ability to claim input credit under the GST regime will depend on the quality, accuracy and completeness of the data filed by the vendors. This makes it imperative to familiarise the vendors with the GST regime, and to ensure that they have the right systems and processes in place.

There is anxiety on the cut-over (from old to new regime), what do you think would be the process in the interim?
Any exercise, when it commences, will face issues in transition. Uncertainty with respect to treatment of taxes paid-such as excise duty and sales tax, how and to what extent businesses will receive input tax credit on unsold inventories at the time of transition to the GST regime, etc.-might lead to deferment of purchases, de-stocking and thereby disrupt the supply chain in the interim.

What are the topmost concerns for the industry – unless suppliers, distributors, retailers, logistics partners, etc, are prepared, will the credit mechanism work?
The top concerns for the industry are:
a)Limited timeframe to gear-up the existing IT and accounting systems;
b)un-interrupted connectivity to the GST network; and
c)increased time and costs of compliance on a monthly basis.
The fundamental aspect of GST is the seamless flow of input tax credit along the entire value addition chain, wherein credit on taxes paid on inputs at each stage will be available in the subsequent stage of value addition, thereby making GST essentially a tax only on value addition at each stage. This credit mechanism under the GST regime will depend on timely compliance and matching of data filed by the parties under the supply chain. Little underscores the practical necessity of this process more than the fact that the GST regulation provides limited timeframe for any rectification of input/output tax credits.

The fact that GST rules are still evolving and are complicating the process, what are your preparations to decipher them?
While, GST as a subject itself will take time for things to settle, we started with the basics like:
1)Communication with vendors and customers to register/migrate to the GST regime and share the GTN number;
2)review and updation of vendor and customer master;
3)engagement with tax consultants to conduct an impact analysis and understand the areas of concerns; and
4)most important, involvement of wider organi-sation to ensure that GST implementation is not viewed just as an F&A/tax initiative, but a business one.

While large-size companies would have a strong IT network for the transition, this may not be true for smaller companies and entities along the entire supply chain. What are the challenges you see for them to streamline?
Companies need to invest to gear-up their existing IT system for the GST regime. Also, companies in rural areas with limited network connectivity will require support of external IT companies/service providers for setting-up offline compliance models, entailing increased compliance costs.

Will GST entail less paperwork with ease of registering for new dealers and retailers?
Yes, online registration process will definitely reduce the paperwork for which uninterrupted connectivity to the GST network will be very important.

It is indicated that for a robust cut-over, will you opt for auditor verification of closing stocks of raw material, finished goods, spares, etc?
No, we will get the physical verification done by the internal team. However, large companies can opt for auditor’s verification to estimate the unutilised tax credit on closing stocks that can be carried forward to the GST regime.

The cost of compliance (IT, accounting) will go up, particularly at the customer level. Is the industry ready to compensate the channel for this?
While larger set-ups will have the required infrastructure, it will be quite challenging and expensive for smaller set-ups. Hope that the benefits of GST will outweigh the increased cost of compliance.

Supply chain issues could jeopardise operations and have financial implications. What worries are particularly higher in case of suppliers and service providers?
GST shifts the tax revenue base from where goods and services are produced (origin-based tax) to where they are consumed (destination-based tax), businesses will therefore need to closely re-assess existing operational structures. Suppliers with multi-state operations will possibly go for consolidation of manufacturing related registrations. Whereas, service providers currently having centralised registration will require State-wise registrations.

Will cost of doing business rise for the cement industry in general? If yes, what components will add to the cost. If no, what changes will bring in benefit both to the industry and the consumer?
GST is likely to have a positive impact on the cement industry. Lower GST rate of 5 per cent on key inputs/raw materials (like limestone, coal, lignite) should reduce the cost of production of cement. Further, cement manufacturers will also be able to save on their logistics costs due to rationalisation of warehouses and lower transportation costs due to decline in transit time.

However, following elements will continue to be included in the cost of production:
a)Royalty paid to State Government for quarrying limestone;
b)clean energy cess levied on coal, not subsumed under GST;
c)tax on electricity, not subsumed under GST; and
d)tax on fuels (diesel and petrol) used for running DG sets or RMC trucks etc., not subsumed under GST.

Will the need for working capital rise as all taxes must be paid right at the time of dispatch?
Yes, levy of GST on stock transfers, receipt of advance payments from customers, GST on inputs consumed for making zero rated supplies like exports, abolition of concessional tax form (such as Form C, F, H etc.) will raise the working capital/cash flow requirements.

De-stocking, which has already started, will it result in financial losses ahead of the GST rollout, although temporary?
Yes, de-stocking will entail selling existing stocks at discounts, thereby impacting the top line as well as the bottom line.

Do you perceive that cost of production will rise/fall in the GST regime. What will make them go up/down?
The cost of production depends on the price of key inputs/raw materials. Lower GST rate of 5 per cent on key inputs/raw materials like limestone, coal, lignite should reduce the cost of production of cement. However, the exact impact of these changes on the cost of production will depend on the fuel mix of a cement manufacturer.

Given that the GST rates for various inputs are fixed lower than cement and electricity outside its purview, will it increase or decrease the cost of production?
Keeping electricity outside the ambit of GST will break the credit chain and will increase the cost of production.

Freight is a major cost element in cement business, will the GST on transportation increase or decrease the cost or price to end-consumers?
The effective service tax rate on transportation of goods by road through the Goods Transport Agency after factoring in abatement was 4.5 per cent where-in input credit was available to the cement manufacturer for inward supplies up to the factory gate. Under the GST regime transportation of goods by road through the Goods Transport Agency will be subject to GST rate of 5 per cent with no input tax credit. Thereby, increasing the costs of transportation of goods by road through the Goods Transport Agency. However, the overall transportation costs is expected to come down due to rationalisation of warehouses in the long run, efficient movement of fleet and ease of cross border movement of goods (reduction in transit time).

Do you perceive that cement consumer prices will move up/down under GST. What will make them go up/down?
Cement manufacturers were expecting GST rate of around 18 per cent on cement. Therefore, GST rate of 28 per cent on cement might result in increase in price for the end-consumers, at least temporarily, until the credit chain starts working at all levels.

Will the GST regime attract investment into the sector?
The Government’s focus on infrastructural growth will certainly attract investment into the sector. Positive impact of GST will also help the sector, which is presently facing challenges with respect to lower capacity utilisation and low margins. Bringing the real estate under the ambit of GST will also boost the investment into the sector.

There is no clarity on GST’s anti-profiteering rules. It is not yet comprehendible whether businesses will be able to hike prices or not in case costs rise. What is your opinion on this uncertainty?
In principle, the anti-profiteering clause is clear – businesses must pass on the benefit of higher input tax credit or reduction in tax rate to the end-consumers by way of commensurate reduction in price of product. While the objective may sound simple, implementing the anti-profiteering clause is fraught with grave risks. Further, it is certainly questionable whether a free market economy should even have such price control mechanisms. After all, movement in price of product could be due to a host of reasons such as the demand-supply scenario, competition and in certain cases, prices of a commodity in international markets, the level of the currency and so on. In the absence of detailed rules and clear understanding of market dynamics, this clause remains an important open issue and will limit the ability of businesses to change prices in response to changing tax rates.

Will GST be more of self assessment service, less discriminatory and less corruption?
Yes, online filing of tax returns, assessments, refunds, etc. under the GST regime will reduce the interface between the assessees and tax officials.

In case cement prices go up marginally, will it impact the demand and therefore the construction industry?
Given the Government’s focus on developing infrastructure it is unlikely that marginal increase in cement prices will have much impact on the demand side. The increase most likely will be passed on to the end-consumers, which in turn, will increase the costs of infrastructure and housing projects.

Any other information you wish to share.
With the onset of GST, India will be adopting a unique invoice to invoice matching concept wherein the details of inward supply furnished by the recipient shall be matched with the corresponding details of outward supply furnished by the supplier. In case, it is successful, the world will follow.

-Nitin Madkaikar

Economy & Market

RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways

Published

1 week ago

March 16, 2026

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Roundtable discussions focus on innovation for safer highways.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.

Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.

Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.

RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.

Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.

Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.

The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.

From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.

Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.

Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.

Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.

The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.

Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.

The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.

Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.

Economy & Market

CTS Roundtable Charts Tech-Led Roadmap for Construction

Published

1 week ago

March 16, 2026

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CTS Roundtable Maps Technology Roadmap for Construction

Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.

A platform to move from discussion to deployment

Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.

Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.

Industry at a turning point

Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.

Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.

His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.

From BIM to AI, data to governance

A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.

Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.

Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.

The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.

Industrialised construction gains ground

The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.

Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.

Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.

Adoption remains the biggest hurdle

While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.

Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.

Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.

That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.

Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.

Beyond buzzwords

A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.

The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.

Setting the agenda for CTS 2026

By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.

More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.

As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.

Concrete

Human Factor in Grinding Optimisation

Published

1 month ago

February 20, 2026

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Ponnusamy Sampathkumar, Consultant – Process Optimisation and Training, discusses the role of skilled operators as the decisive link between advanced additives, digital control and world-class mill performance.

The industry always tries to reduce the number of operators in the Centre Control Room. (CCR) Though the concept was succeeded to certain extent, still we need a skilled person in the CCR.
In an era where artificial intelligence (AI) grinding aids, performance enhancers, and digital optimisation tools are becoming increasingly sophisticated, it’s tempting to believe that chemistry alone can solve the challenges of mill efficiency. Yet plants that consistently outperform their peers share one common trait: highly skilled operators who understand the mill as a living system, not just a machine.
Additives can improve flowability, reduce agglomeration, and enhance separator efficiency, but they cannot replace the nuanced judgement that comes from experience. Grinding is a dynamic process influenced by raw material variability, moisture, liner wear, ball charge distribution, ventilation, and separator loading. No additive can fully compensate for poor control of these fundamentals.

Operators see what additives cannot
When I joined the cement industry in 1981, not much modernisation was available then. Mostly the equipment was run from the local panel. Once I was visiting the cement mills section. The cement mills were water sprayed over the shell to reduce the temperature to avoid the gypsum disintegration.
The operator stopped the feeding for one of the mills. When I asked the reason, he replied that mill was getting jammed, and he added that he could understand the mill condition by its sound. I also learned that and it was useful throughout my career. In another plant I saw the ‘Electronic Ear,’ which checked the sound of the mill and the signal was looped with feed control!
Whatever modernisation we achieve, it is from the human factor that the development starts.
Additives respond to conditions; operators interpret them.
A skilled operator can detect subtle shifts, like a change in mill sound, a slight variation in circulating load, or a drift in separator cut point. It’s long before instrumentation flags a problem. These micro-observations often prevent major efficiency losses.
Additives work best when the process is stable
I would like to share one real time incident. The mill was running on auto mode looped with the mill outlet bucket elevator kilowatt. (KW)There was a decrease in the KW, and the mill feed was increased by the auto control (PID). After a while, the operator stopped both the feed and the mill. He asked the local operator to check the airslide between mill outlet and the elevator. They found the airslide was jammed and no material flow to the elevator!
The operator deduced the abnormality by his experience by seeing the conditions and the rate of increase of the feed by the auto control.
It’s always the human factor that adds value to the optimisation.

Grinding aids are multipliers,
not magicians.
They deliver maximum benefit only when:
• Mill ventilation is correct
• Ball charge is balanced
• Feed moisture is controlled
• Separator speed and loading are improved
• Blaine targets are realistic
Without these fundamentals, even advanced additives may become costly investments. The operator is responsible for ensuring process stability, whether using a ball mill or a vertical mill. After ensuring the system is stable, the operator observes it briefly before transitioning to automatic control. If there is any anomaly in the system the operator at once takes control of the system, stabilises and bring back to auto control.

Skilled operators adapt in real time
It will be interesting to note that the operators who operate from local panel start to operate from DCS also. They have the experience and the ability to adapt the changes. Operator checks each parameter deeply. Any meagre change in the parameters is also visible to him.
Raw materials change. Weather changes. Wear patterns change.
A skilled operator adjusts:
• Feed rate
• Water injection
• Separator speed
• Grinding pressure (in VRMs)
• Mill load distribution.
These adjustments require intuition built from years of experience, something no additive can replicate.

Human insight prevents over reliance on additives
Plants sometimes increase additive dosage to mask deeper issues like:
• Poor clinker quality
• Inadequate drying capacity
• Incorrect ball gradation
• High residue due to worn separator internals.

A knowledgeable operator finds root causes instead of chasing temporary chemical fixes.
The real optimisation sweet spot is reached when:
• Operators understand how additives interact with their specific mill.
• Additive suppliers collaborate with plant teams.
• Process data is interpreted by humans who know the mill’s behaviour.
This constructive collaboration consistently delivers:
• Lower kWh/t
• Higher throughput
• Better product consistency
• Optimum standard deviation.

Advanced additives are powerful tools, but they are not substitutes for human ability. Grinding optimisation is ultimately a human driven discipline, where skilled operators make the difference between average performance and world class efficiency. Additives enhance the process but operators
control it.

About the author:
Ponnusamy Sampathkumar, Consultant – Process Optimisation and Training, is a seasoned cement process consultant with 43+ years of global experience in plant operations, process optimisation, refractory management, safety systems and training multicultural teams across international cement plants.