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Core sector grew by 1.3% in Dec 2019

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The core sector growth for December 2019 improved and grew by 1.3 per cent as against the 0.6 per cent contraction seen a month ago. However, it was lower than 2.1 per cent growth witnessed in December 2018.

During the first nine months of the fiscal year 2019-20, the fiscal deficit of the central government has surpassed its budgeted estimate. During April-December 2020, the actual fiscal deficit was at 132.4 per cent of the budget target. The fiscal deficit during this period was Rs 9.4 lakh crore, higher than higher than the budgeted Rs 7.04 lakh crore for FY20. Lower tax collections and lower disinvestment proceeds coupled with significant growth seen in both revenue and capital expenditure has led to higher fiscal deficit.

  • The revenue receipts collection was lower at only 58.4 per cent of the budget estimate lower than 62.8 per cent seen in the corresponding period last year.
  • Tax collections were low at 54.9 per cent of the budgeted estimate for FY20. The decline has been on account of lower corporate tax collection, integrated GST, customs and service tax.
  • Non-tax revenue was higher at 77.3 per cent of the budget estimate compared with 60.3 per cent in the corresponding period last year. These are aided by higher receipts by way of dividends and profits (99 per cent of the budgeted).
  • Capital receipts are only 25.9 per cent of the budget estimate much lower than the 50.5 per cent in the comparable period last year.
  • Only 17 per cent of the disinvestment budgeted target has been achieved during the first nine months of FY20, lower than the 43 per cent last year. Disinvestment proceeds amounted to Rs 18,100 crore out of Rs 1.05 lakh crore budget target.
  • Revenue expenditure is on par with last year at 75.7 per cent of the budget target.
  • Capital expenditure is higher at 75.6 per cent of budget compared with 70.6 per cent in the comparable period last year indicative of focus of the government on asset creation.
  • We are expecting around 0.5 per cent slippage in the fiscal deficit, which is expected to move to 3.8 per cent of GDP for FY20.

    Core Sector update -December 2019
    The core sector growth for December 2019 improved and grew by 1.3 per cent as against the 0.6 per cent contraction seen a month ago. However, it was lower than 2.1 per cent growth witnessed in December 2018. The growth has been aided by improvement in the production in 3 industries namely refinery products, coal and fertilizers. In terms of cumulative growth in the eight core industries during April-December 2019, the growth was 0.2 per cent compared with the 4.8 per cent growth registered during April-December 2018.

    Industry-wise growth:

  • Coal production increased by 6.1 per cent in December 2019 over December 2018 with after sustained contraction seen in the previous five months.
  • Crude Oil production declined by 7.4 per cent in the month compared with the contraction by 4.3 per cent in the comparable month a year ago.
  • The production of the natural gas too has contracted by 9.2 per cent as against 4.2 per cent growth seen in December 2018 registering sustained contraction for the nine months.
  • Refinery products, which have highest weight in core sector, grew by 3 per cent as against a contraction by -4.8 per cent in December 2018.
  • Fertilizers have seen a double digit growth by 10.2 per cent in December 2019 as against -2.3 per cent de-growth seen in December 2018.
  • Steel production increased by 1.9 per cent in December 2019, after registering sustained contraction in the past 3 months. It is also lower than the 10.1 per cent growth seen in December 2018.
  • The production of cement grew by 5.5 per cent higher than previous month (4.3 per cent in November 2019) but it was much lower than the 11.6 per cent growth seen in December 2018.
  • Electricity production contracted for the successive fifth month in December 2019 by 1.9 per cent as against the 4.4 per cent growth seen in the corresponding month a year ago.
  • CARE Ratings- view
    Based on the core sector growth, IIP is expected to grow by 2 per cent for December 2019 which would also be aided by the base effect. We are expecting IIP to grow by 4 per cent for FY20.

    COURTESY: CARE RATINGS- Fiscal and Core Sector Update
    Disclaimer: This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.

    ABOUT THE AUTHORS:

  • Madan Sabnavis is Chief Economist. He can be contacted on: madan.sabnavis@careratings.com or 91-22-68374433
  • Dr Rucha Ranadive is Economist. She can be contacted on: rucha.ranadive@careratings.com or 91-22-68374406
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    Economy & Market

    Smart Pumping for Rock Blasting

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    SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
    Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.

    SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

    “Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context

    Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.

    Always Inspection Ready

    Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.

    Key Features

    • Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
    • Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
    • Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
    • Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
    • Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.

    Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.

    Applications – Optimized for Rock Blasting

    BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.

    With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.

    The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.

    From Inspection to Operation

    A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.

    “The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”

    Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents

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    Concrete

    Digital process control is transforming grinding

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    Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, delves into how digital intelligence is transforming cement grinding into a predictive, stable, and energy-efficient operation.

    Grinding sits at the heart of cement manufacturing, accounting for the largest share of electrical energy consumption. In this interview, Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, explains how advanced grinding technologies, data-driven optimisation and process intelligence are transforming mill performance, reducing power consumption and supporting the industry’s decarbonisation goals.

    How has the grinding process evolved in Indian cement plants to meet rising efficiency and sustainability expectations?
    Over the past decade, Indian cement plants have seen a clear evolution in grinding technology, moving from conventional open-circuit ball mills to high-efficiency closed-circuit systems, Roller Press–Ball Mill combinations and Vertical Roller Mills (VRMs). This shift has been supported by advances in separator design, improved wear-resistant materials, and the growing use of digital process automation. As a result, grinding units today operate as highly controlled manufacturing systems where real-time data, process intelligence and efficient separation work together to deliver stable and predictable performance.
    From a sustainability perspective, these developments directly reduce specific power consumption, improve equipment reliability and lower the carbon footprint per tonne of cement produced.

    How critical is grinding optimisation in reducing specific power consumption across ball mills and VRMs?
    Grinding is the largest consumer of electrical energy in a cement plant, which makes optimisation one of the most effective levers for improving energy efficiency. In ball mill systems, optimisation through correct media selection, charge design, diaphragm configuration, ventilation management and separator tuning can typically deliver power savings of 5 per cent to 8 per cent. In VRMs, fine-tuning airflow balance, grinding pressure, nozzle ring settings, and circulating load can unlock energy reductions in the range of 8 per cent to 12 per cent. Across both systems, sustained operation under stable conditions is critical. Consistency in mill loading and operating parameters improves quality control, reduces wear, and enables long-term energy efficiency, making stability a key operational KPI.

    What challenges arise in maintaining consistent cement quality when using alternative raw materials and blended compositions?
    The increased use of alternative raw materials and supplementary cementitious materials (SCM) introduces variability in chemistry, moisture, hardness, and loss on ignition. This variability makes it more challenging to maintain consistent fineness, particle size distribution, throughput and downstream performance parameters such as setting time, strength development and workability.
    As clinker substitution levels rise, grinding precision becomes increasingly important. Even small improvements in consistency enable higher SCM utilisation without compromising cement performance.
    Addressing these challenges requires stronger feed homogenisation, real-time quality monitoring and dynamic adjustment of grinding parameters so that output quality remains stable despite changing input characteristics.

    How is digital process control changing the way grinding performance is optimised?
    Digital process control is transforming grinding from an operator-dependent activity into a predictive, model-driven operation. Technologies such as online particle size and residue analysers, AI-based optimisation platforms, digital twins for VRMs and Roller Press systems, and advanced process control solutions are redefining how performance is managed.
    At the same time, workforce roles are evolving. Operators are increasingly focused on interpreting data trends through digital dashboards and responding proactively rather than relying on manual interventions. Together, these tools improve mill stability, enable faster response to disturbances, maintain consistent fineness, and reduce specific energy consumption while minimising manual effort.

    How do you see grinding technologies supporting the industry’s low-clinker and decarbonisation goals?
    Modern grinding technologies are central to the industry’s decarbonisation efforts. They enable higher incorporation of SCMs such as fly ash, slag, and limestone, improve particle fineness and reactivity, and reduce overall power consumption. Efficient grinding makes it possible to maintain consistent cement quality at lower clinker factors. Every improvement in energy intensity and particle engineering directly contributes to lower CO2 emissions.
    As India moves toward low-carbon construction, precision grinding will remain a foundational capability for delivering sustainable, high-performance cement aligned with national and global climate objectives.

    How much potential does grinding optimisation hold for immediate energy
    and cost savings?
    The potential for near-term savings is substantial. Without major capital investment, most plants can achieve 5 per cent to 15 per cent power reduction through measures such as improving separator efficiency, optimising ventilation, refining media grading, and fine-tuning operating parameters.
    With continued capacity expansion across India, advanced optimisation tools will help ensure that productivity gains are not matched by proportional increases in energy demand. Given current power costs, this translates into direct and measurable financial benefits, making grinding optimisation one of the fastest-payback operational initiatives available to cement manufacturers today.

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    Concrete

    Refractory demands in our kiln have changed

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    Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.

    As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.

    How have refractory demands changed in your kiln and pyro-processing line over the last five years?
    Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
    In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
    Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.

    What are the biggest refractory challenges in the preheater, calciner and cooler zones?
    • Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
    • Calciner: AFR firing, thermal shock and alkali infiltration.
    • Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
    Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.

    How do you evaluate and select refractory partners for long-term performance?
    In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
    Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
    On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.

    Can you share a recent example where better refractory selection improved uptime or clinker quality?
    Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.

    How is increased AFR use affecting refractory behaviour?
    Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
    Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
    Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.

    What role does digital monitoring or thermal profiling play in your refractory strategy?
    Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.

    How do you balance cost, durability and installation speed during refractory shutdowns?
    We focus on three points:
    • Material quality that suits our thermal profile and chemistry.
    • Installation speed, in fast turnarounds, we prefer monolithic.
    • Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
    This balance ensures reliable performance without unnecessary expenditure.

    What refractory or pyro-processing innovations could transform Indian cement operations?
    Some promising developments include:
    • High-performance, low-porosity and nano-bonded refractories
    • Precast modular linings to drastically reduce shutdown time
    • AI-driven kiln thermal analytics
    • Advanced coating management solutions
    • More AFR-compatible refractory mixes

    These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.

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