Economy & Market
Decline of PE Investments in Real Estate | A reality or an illusion?
Published
8 years agoon
By
admin
Amid concerns over the decline (5 per cent YOY in FY18) in private equity (PE) investments entering India, the impact on real estate appears to be nearly four-folds higher (19 per cent YOY). While the numbers spin a gloomy picture for inflows, a detailed analysis reveals that large one-off deals such as the Hiranandani – Brookfield deal and the DLF-GIC deal skewed the numbers in FY17. Therefore, it might be incorrect to believe that PE investments in FY 18 are on a declining trend. This whitepaper is an attempt to capture the true picture of PE capital in Indian realty and looks at the quintessential question – is the decline of PE investments in real estate a reality or an illusion?
The lifeline of capital movement, PE investments in India, saw a slowdown in FY18 following the staggering growth trajectory over the recent past. While overall PE investments dropped by 5 per cent YOY, funds foraying into the real estate sector declined by significant 19 per cent YOY during this period. Investments in sectors other than realty however, held steady.Did investments into real estate actually decline?
At one glance, the decline of 19 per cent YOY in investments could reflect turbulence in the real estate sector. But when we delve deeper and dissect the flow of funds, it provides a different picture. During FY17, there have been several large ticket brownfield transactions particularly in commercial real estate covering office and retail assets (malls). For example, the $1.4 billion DLF-GIC deal and $1 billion Hiranandani-Brookfield deal which elevated the total investments for FY17. Such transactions do not happen often due to the sheer size of assets that are involved in the transactions, as those assets have a long gestation period and take more than a decade to mature and become operationally efficient.
If we look at table 2, the PE investments have been on an increasing trend since FY15 and the strong momentum which was observed in FY17 has sustained in FY18.Commercial r.e. more attractive for equity investments
The structural reforms introduced by the government over the past 2-3 years have helped the real estate sector in India to move towards a relatively transparent environment. This transformation has attracted a significant number of organised players. The process is still on and shall stabilize in short to medium term. We believe that the reforms have brought in a paradigm shift in the sector and made it more conducive for investors. Taking cognizance of these reforms, investors have invested around USD 24 billion in the form of debt and equity into real estate since FY15.
Among the asset classes, residential sector is reeling under pressure for the last 3-4 years but commercial real estate is moving from strength to strength. While the office market is maintaining its robust annual transaction volumes, retail spaces, particularly select shopping centres in tier I and II cities are catching the attention of international funds. Warehousing is one of the most promising sectors in India. The implementation of the Goods and Services Act (GST), continued government focus on building industrial corridors and the unabated growth of the Indian consumption market have whipped up the growth potential of the sector.
While the PE investments into residential asset between FY15 and FY18 were primarily in the form of structured debt courtesy inherent risk of the sector, those into commercial assets were in the form of equity. Out of $24 billion, around $10 billion (42 per cent) was in the form of equity investments into commercial assets such as prime office assets and select retail malls.
The last couple of years have seen unprecedented interest for good quality rent yielding office and retail assets in cities across India among global financial institutions such as the private equity giants, sovereign funds and wealth funds. This demand coupled with scarcity in supply of good quality assets, strong performance of the office sector, reduced interest rate regime, decline in risk expectations on account of reforms and a strong bench of long term investors did result in compression of capitalisation (cap) rate for good quality commercial assets from 9-11 per cent to 7.5-9 per cent during the last three to four years.Would the cap rate compression in commercial assets continue?
Despite the compression in cap rates, investors’ appetite for quality space seems undeterred. Investors entering the market today are expecting the cap rates to compress further up to 150 bps in the years to come. The projections are also in sync with the estimated exit time. They are hoping to get dual benefits – primarily from the growth in rental income and secondly from compression in cap rates.
On the rental front, we are optimistic about the growth prospects, as there has been a significant crunch in the supply of good quality office space across major cities in India. Vacancy rates in some of the most sought after business districts in India such as the Bandra-Kurla Complex, Lower Parel in Mumbai, Outer Ring Road in Bengaluru and DLF Cyber City in NCR have shrunk to single digit levels. These prime business districts have limited scope for substantial new supply. The supply crunch coupled with strong occupier demand has been driving up the rentals for good quality office space. With business environment in India improving and the country’s GDP growth rate expected to improve in the coming years, the occupier demand would strengthen. This would provide tailwinds for future office rental growth.
The oversupply of retail assets (malls) coupled by strata title sales of malls in India led to underperformance and closure of a large number of properties. Select retail assets which survived and were successful are witnessing strong occupier demand and rental growth. These particular retail assets are attracting investors’ attention at par with or in some cases higher than that witnessed in case for office assets. The demand is primarily driven by scope for better rental growth. Unlike office assets, which generally have a standard rental appreciation clause of 15 per cent every three years on the base rent, retail assets come with revenue sharing opportunities, in addition to the escalation on base rent. There is a significant potential for mall revenues to grow on account of the rising consumer demand and ongoing structural changes taking shape in select malls to accommodate new anchors and entertainment options in order to remain relevant against the competition from online retail. Hence, with respect to the expectation of rental growth in office and retail assets the investors would be able to achieve their desired objective.
However, with respect to expectations of cap rate compression, one needs to be cautious. Globally, the days of zero/low interest rates regimes are coming towards an end. The U.S. fed has ended its quantitative easing program and has already hiked the rates several times and has indicated of more hikes in the coming years. This has led to increase in cost of funds globally. Even in India the reducing interest rate regime prevailing for the last three years is likely to end soon and so is the case with Government Securities (G-sec) yields.
We believe that our economy is at the bottom of the current interest rate cycle and going forward the rates would start hardening. The government breaching of fiscal deficit targets currently, have already put upwards pressure on G-sec yields. Further additional factors such as expectation of higher inflation, weakened capital reserve position of banks owing to NPAs, treasury losses on bank’s G-sec holdings and the early sign of pick up in credit growth have been pushing banks to raise lending rates. With election in several states and the general election approaching, the volatility would be higher in the next two years.
While it is too early to comment on the extent of rise in lending rates and G-sec yields, in the short term they are likely to have an impact on the current trend of cap rate compression. If the rise in lending rates and G-sec goes up beyond 100-150 bps the expectation of returns from real estate investments would go up. Thus, particularly in the short-term, the case for cap rate compression would weaken and it may hold steady or increase marginally to keep the spread constant. Overall the institutional investor may have to rely more on rental growth to make up for their expected returns from their investments in the near future.
When it comes to long-term perspective, India’s macro-economic fundamentals and GDP growth outlook remain strong on the back of settling of the ongoing structural reforms and completion of mega infrastructure projects in the next five years. In turn, as the economy matures the perceived risk pertaining to invest in India is likely to come down. With the Reserve Bank of India’s continuous focus on keeping the inflation under 4 per cent and government’s efforts for fiscal consolidation, the cap rates are going to see required compression. Hence, investors with longer investment horizons like endowment funds, sovereign funds, pension funds and insurance companies would achieve returns at par with their expectations. A note of caution: unforeseen catastrophe like global financial crisis of 2007-08 should not repeat, current low intensity trade war should not exacerbate
and India should have a stable government beyond 2019.
Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
3 days agoon
July 13, 2026By
admin
Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.
Surat (Gujarat)
Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.
Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.
Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.
The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.
The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.
Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”
He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”
Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.
Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.
Concrete
Green Construction Through Cement Innovation
Published
2 weeks agoon
July 2, 2026By
admin
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
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Concrete
Indian Railways Plans Green Fly Ash Transport Network
Published
3 weeks agoon
June 27, 2026By
admin
Specialised rail logistics will move fly ash from power plants to infrastructure industries.
New Delhi
Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.
The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.
India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.
The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.
Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.
Nuvoco Inaugurates Limla Cement Plant in Surat
Nuvoco commissions Surat grinding unit
Cement Sector Faces Sluggish Growth in First Half of FY27
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Cement Prices To Hold Steady Amid Monsoon Slump
Nuvoco Inaugurates Limla Cement Plant in Surat
Nuvoco commissions Surat grinding unit
Cement Sector Faces Sluggish Growth in First Half of FY27
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

