Economy & Market
Social Dialogue for Effective Industrial Relations
Published
8 years agoon
By
admin
Each enterprise has a history of industrial relations and knowledge of the history facilitates in developing enterprise specific strategy for an effective industrial relations climate in the present and the future.
We are well conversant with John T Dunlop’s "System Model", which considered Industrial Relations as a subsystem of society, distinct from, but overlapping other subsystems. He suggested that Industrial Relations system could be divided into four interrelated elements comprising of certain actors, certain context, an ideology which binds the industrial relations system together and a body of rules created to govern the actors at the workplace.
Each enterprise has a history of industrial relations and knowledge of the history facilitates in developing enterprise specific strategy for an effective industrial relations climate in the present and the future. Industrial relations in an enterprise, is also dependent upon the organisation’s culture, governance practices, style of management of the owners/top management as well as the approach and style of functioning of the union/s and the methods deployed by them for handling of industrial relations issues of the organisation. Industrial relations in an enterprise is dependent on applicable relevant labour laws, contract of employment, rules and regulations of the enterprise, as well as past agreements between the management and the trade union that are supposed to be complied with by both management and trade unions.
At times there are differences in approach between managements and trade unions on the methodology to be adopted on resolution of disputes, which at times do create industrial relation problems. Industrial relations issues in an enterprise can be on various issues some of which are recognition of union/s, aspects of work, terms and conditions of employment, compensation, welfare measures, promotion policy, rewards, and punishments arising out of disciplinary proceedings. Both the management and the trade union of an enterprise need to have an approach on finding solutions to the problems, while maintaining discipline, improved quality, and improved productivity coupled with uninterrupted operations and continuity of growth of the enterprise and development of the workforce. Hence, an effective communication involving social dialogue from both management and union does act as a catalyst in building an effective industrial relations climate.
Industrial relations climate is enterprise specific; the industrial relations climate differs from one enterprise to another and from one region to the other, depending upon the attitude and behaviour of the top management towards trade union and of trade union towards top management and also amongst the trade unions.
The ratio of permanent workers to contract workers over a period of time has become skewed; earlier i.e. till 1990s, there used to be higher number of permanent workers than the contract workers. In the decade of 1991 to 2000 the number of above two types of workforce changed drastically, which did gave rise to series of litigation concerning permanency, equal pay for equal work etc. i.e. contract workers desiring parity with the permanent workers. Beyond 2000, the number of contract workers has surpassed the number of permanent workers in many enterprises. Presently large number of enterprises are engaging substantial number of contract workers at the workplace, both in the manufacturing and the service sector, hence wage and service conditions of contract workers working for an enterprise is becoming a major issue for trade unions and workers, hence this is bound to continue to have Industrial Relations implications.
The areas of labour legislation impacting industrial relations in India are governed by The Trade Union Act, 1926, The Industrial Employment [Standing Orders] Act, 1946, The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, The Payment of Bonus Act, 1965, The Equal Remuneration Act, 1976, The Industrial Disputes Act, 1947 and The Contract Labour (Regulation & Abolition) Act, 1970 apart from certain state legislations applicable to certain States of India.
The present National Democratic Alliance (NDA) Government, under the Ministry of Labour and Employment, has looked at clubbing (i) Laws governing wages by consolidating: The Minimum Wages Act, 1948, The Payment of Wages Act, 1936, The Payment of Bonus Act, 1965 and The Equal Remuneration Act, 1976 under Labour Code on Wages Bill, 2017 and (ii) Laws governing terms and conditions of employment by consolidating: Trade Unions Act, 1926, Industrial Employment [Standing Orders] Act, 1946 and Industrial Disputes Act, 1947 under Labour Code on Industrial Relations Bill, 2015. The conversion of these present Acts into two Codes will lead to a commonality of definition under each of the Codes, but the contents of the existing laws have been copied under the Code, with hardly any change in the content of the Acts incorporated in the Code. These two new codes will be the new labour legislations impacting Industrial Relations in India, once they become laws.
ILO convention No. 144 on social dialogue
The ILO is moving towards its centenary in 2019, and the ILO Office has stepped up its efforts to encourage universal ratification of ILO Convention No. 144 passed in 1976 dealing with Tripartite Consultation also referred to as Social Dialogue. The ILO Declaration on Social Justice for a Fair Globalisation, adopted unanimously at the International Labour Conference in 2008, identified this convention as one of the four most significant instruments from the viewpoint of governance.
ILO has been propagating "Social Dialogue" at the international, national and enterprise level with an objective of finding solution to problems and hence developed ILO Convention No. 144 dealing with "Social Dialogue" which was ratified by India in 1978.
The ILO definition on "Social Dialogue" is ‘All types of negotiations, consultation or simply exchange of information between or amongst representatives of governments, employers and workers on issues of common interest to economic and social policy’. This ILO Convention No. 144 dealing with Social Dialogue is an approach at finding solutions to problems and hence the International Labour Organization does propagate this convention to the Governments, Employer Organizations and Trade Unions of each member coutry, so as to improve the climate for effective Industrial Relations.
Employment model post 1991
In India post 1991, majority of the enterprises in the manufacturing as well as service sector undertook voluntary retirement schemes and heavily reduced the unionised workforce; hence the industrial relations climate in enterprises has gone through a major change, as unionised work force in the formal sector, who were employees of the enterprise and members of trade unions, fell drastically. These enterprises in the future limited the employment of unionised workforce and met future requirement of workforce by and large, through recruitment of employees in the management cadre, and in quite many case by obtaining contract work force through a contractor / service provider or outsourced quite a few activities.
Enterprises born post 1991, both in the manufacturing and service sector have built an employment model wherein maximum employees are in the management cadre; few employees are in the worker category. Enterprises engage a substantial number of contract workers, who work for the enterprise through a contractor/service provider and their working for the enterprise are governed by the The Contract Labour (Regulation & Abolition) Act, 1970.
This employment model has brought in new dimensions in Industrial Relations wherein the enterprise claim that the contract workers are employees of the contractor and not of the enterprise, though they continue to work for the enterprise , through the contractor / service provider for many years. In certain enterprises break in service is given to these contract workers through the contractor/service provider, who transfers their service to another enterprise or terminates their employment periodically. Presently there are many contractors/service providers supplying large number of workforce to enterprises. Some of these contractors employ more than 30,000 workers and supply contract labour to various enterprises.
Human resource development initiatives
Post 1991, enterprises in India have undertaken various human resource development initiatives for employees that belong to the management cadre. For an effective and conducive industrial relations climate there are enterprises that have undertaken human resource development initiative/activity, which impacts the workers in the enterprise, who could be or are members of a trade union. Very few enterprises extend these human resource development initiative/activity to contract workers engaged by the enterprise, as these workers are employees of the contractor/service provider and not of the enterprise where they work.
In a training programme on "Improving Industrial Relations" conducted by me for an enterprise, I was explaining ILO Convention No. 144 dealing with Social Dialogue to the participants. I conducted a brainstorming exercise with the participants and they evolved a list of Human Resource Initiative / Engagement Activity that can be undertaken by the enterprise for improved communication and building a conducive and positive work culture. The list that emerged is by and large the type of initiatives that most enterprises presently undertake. I then divided the participants which comprised of management personnel and internal trade union leaders to form groups of management team and trade union team and then look at each of the Human Resource Initiative / Activity and identify the perception of benefit to the Management and perception of benefits to the Trade Union / Workers. The result that emerged in the exercise is given in the table.
The perceptions that emerged during the exercise was to make both the management and trade union participants understand each other’s perspective, and the need to have social dialogue with an objective of building a conducive and effective industrial relations climate in the enterprise and building a culture of collaboration rather than confrontation.
These human resource development initiatives/engagement activities are long term in nature.
It cannot do a magic to change the union-management relationship in a short period. It needs involvement of the entire workforce at the site plus their unions. It takes a lot of time for the union-management relationship to mature and be institutionalised where both sides trust each other. The principle of trust is that trust is built on trust and never on mistrust.
A conducive and effective Industrial Relations climate can facilitate in avoiding a culture which could lead to strikes / lockouts, as they are expensive remedies for both sides.
Conclusion
In India post 1991, the employment model in most enterprises has changed and the engagement of contract workers through contractors/service providers both in manufacturing and service sector enterprises is not marginal but substantially high. In quite many enterprises the contract workers working is more than the total permanent employees (management staff plus permanent workers).
The labour codes drafted by the present National Democratic Alliance (NDA) Government under the Ministry of Labour & Employment have still not dealt with the issue of Contract Labour which is covered under The Contract Labour (Regulation & Abolition) Act, 1970. To reduce litigation / dispute on contract labour there is a need to define core and noncore jobs and defining areas of engagement of contract labour and permanent employees by Government of India. Andhra Pradesh Government under the Rules of Andhra Pradesh dealing with The Contract Labour (Regulation & Abolition) Act, 1970 permits engagement of contract labour only in defined noncore jobs. This has helped in ensuring that contract labour is not engaged in core jobs of an enterprise and the same are carried out by permanent workers.
In majority of the enterprises in India the contract workers are engaged in noncore and core jobs, paid only the statutory minimum wages or marginally higher, while they continue to serve the enterprise for years, just like permanent employees (management staff plus permanent workers). In most cases, the contract workers do not enjoy benefits of any annual rise in wages like the permanent employees (management staff plus permanent workers) or the long term settlement benefits received by permanent workers. There is a need for social dialogue between management and unions and work on a constructive approach, as employers/top management desire flexibility linked to business needs, as a step towards ease of doing business; at the same time the unions desire reasonable remuneration plus a safety net, when they lose employment, because of the employers decision to restructure workforce based on business needs.
This present business model on contract workers being paid minimum wages along with negligible security of employment is bound to lead to industrial relations issues when this workforce compares its remuneration and working conditions with the employees who are directly employed by the enterprise. There is need for managements and trade unions to find solutions to the problem of contract workers through social dialogue at the enterprise level, otherwise this will one day lead to reemergence of unpleasant Industrial Relations climate at enterprise levels, similar to those that we witnessed in the 1960’s, 1970’s and 1980’s in certain parts of India.
About the author Dr. Rajen Mehrotra is immediate past president of Industrial Relations Institute of India (IRII), Former Senior Employers’ Specialist for South Asian Region with International Labour Organization (ILO) and Former Corporate Headof HR with ACC Ltd and Former Corporate Head of Manufacturing and HR with Novartis India Ltd.
He can be contacted on: Email: rajenmehrotra@gmail.com
You may like
Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
1 week agoon
July 13, 2026By
admin
Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.
Surat (Gujarat)
Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.
Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.
Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.
The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.
The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.
Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”
He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”
Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.
Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.
Concrete
Green Construction Through Cement Innovation
Published
3 weeks agoon
July 2, 2026By
admin
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
Participate in Cement Expo 2026 and discover how next-gen infrastructure can be built with innovations in cement.
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.
Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa
Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins
Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa
Nuvoco Inaugurates Limla Cement Plant in Surat
Nuvoco commissions Surat grinding unit
Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa
Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins
Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa
Nuvoco Inaugurates Limla Cement Plant in Surat
Nuvoco commissions Surat grinding unit
Trending News
-
Concrete4 weeks agoAmbuja Sees Cement Demand Easing To Around Five Per Cent In FY27
-
Concrete3 weeks agoACC To Expand Cement Capacity Amid Strong Infrastructure Demand
-
Concrete3 weeks agoIndian Railways Plans Green Fly Ash Transport Network
-
Concrete3 weeks agoStar Cement Named Preferred Bidder For Boro Lakhindong Block

