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Union Budget 2020-21 | Remedy fails to match malady

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As the Union Budget 2020-21 failed to enthuse different segments of investors and consumers, the question that remains is: How long to wait for economic revival?

The sum and substance of reactions to the Union Budget 2020-21 presented by the Finance Minister Nirmala Sitharaman was that it has belied the expectations that there will be some "big bang" measures to stimulate demand and investments in the sagging economy, and that this was a missed opportunity to push some major economic reforms.

This year’s budget has given thrust to agriculture, irrigation and rural development, infrastructure, skill development and the beleaguered financial sector. There were some measures to support MSME sector and affordable housing too. The idea was to touch upon every aspect that could help revive the economy, with an expectation that at least a few of them will click. However, those ideas were not backed by sufficient resources, ultimately due to existing funds crunch. Though the Finance minister claimed to have announced some personal tax concessions, they are unlikely to make big difference in their disposable incomes and overall consumer demand.

The budget has also proposed to tap global sovereign funds to finance infrastructure projects, mainly due to drying up of long term domestic sources and fiscal constraints. Taking a leaf from the US president Donald Trump, the budget has hiked customs duties to protect the domestic industry from external competition. "There is some support to growth, but nothing substantial in the short term. However, the government is still eyeing the long term and has, therefore, pushed capex (the government’s capital expenditure on infra etc.). The multiplier impact of this will be positive but lagged,"said leading rating firm Crisil, in its report on budget.

The economists and analysts argued for employing all means, including deviating from fiscal roadmap in the short term, to pump prime the economic activity, but that was not to be. Tough increasing the fiscal deficit target by 0.5 per cent to 3.5 per cent deviating from its roadmap, a recent study by former Economic Advisor to the Finance Ministry Dr Arvind Subramanian, estimates the fiscal deficit figure at 5.5 per cent, after including deals kept out of government accounting.

Recently, referring to such off-balance sheet expenses resorted to by the government, its auditor, Comptroller and Auditor General of India (CAG), advised the government to make thorough disclosure on such liabilities made by the government and public enterprises to the parliament, to impart more sanctity to its accounting practices.

The government had been in denial mode of economic slowdown for some time, the latest statistics baring the ominous state of the economy prove that it hs come to terms with the reality.

Infra push
Infrastructure push given by the budget is expected to provide support to Cement consumption, albeit not in a big way. "The demand for the commodity (cement) will pick up due to infrastructure, housing and rural development related announcements," said CARE Ratings in its report, while terming it a "Positive" impact of the budget.

Adding 100 more airports by 2024, Rs 1.7 lakh crore allocation for transport infrastructure in 2020-21, development of five new smart cities and continuation of incentives to affordable housing are some of the new proposals in the budget. In the previous budgets the government has already announced its grand infrastructure plans National Infrastructure Pipeline & Accelerated Development of Highways and increased focus on inland water ways.

However, Crisil has given "thumbs down"on the sector citing falling allocations for the sector in the coming fiscal and reduction in off-budget allocations. "For the first time in years, overall infrastructure capex has fallen to Rs 4.7 lakh crore for fiscal 2021 from Rs 5.1 lakh crore in fiscal 2020 RE (revised estimates). Moreover, a 16 per cent reduction in IEBR (Internal and Extra Budgetary Resources) implies a higher burden on budgetary support and strain on government finances. Lower spend on infrastructure would also lower chances of revival in allied sectors, particularly steel and cement."

The past implementation pace on the grand plans the government had announced in the past like National Infrastructure Pipeline and Accelerated Development of Highways, on the other hand, have nothing to boast about. The national infrastructure pipeline of Rs 103 lakh crore over fiscal 2020-25 includes investments in core and allied infrastructure sectors. Excluding allied sectors such as industrial, digital, and social infrastructure, the annual core infrastructure investment amounts to Rs 15 lakh crore, or Rs 90 lakh crore over the five-year period."Of this, Rs 4.7 lakh crore would come from the Centre and Rs 2.6 lakh crore from states, leaving ~52% to the private sector. However, considering the limited number of private players and low risk-appetite of banks, private participation is a key monitorable in achieving these targets,"Crisil added.

Allocation for railways has increased by a meagre three per cent to Rs 1.6 lakh crore. "But this falls way short of the Rs 3.8 lakh crore annual investment envisaged as part of Rs 50 lakh crore investment over fiscals 2018-30. A capex of Rs 6 lakh crore was incurred between fiscals 2016 and 2020, missing the Rs 8.5 lakh crore target set for this period," Crisil pointed out.

However, CARE Ratings billed the budget impact on railways as "positive", stating, "Stable Budget for Railways with similar capital expenditure allocation and opening up of private investment for railway infrastructure creation."Setting up large solar power capacity alongside rail track to optimise electrification cost and railway electrification of 27000 km track are also positives for the sector.

The government, in August 2014, had opened up few activities (comprising suburban corridor, high speed train project, railway electrification, passenger terminals etc.) of Indian Railway for FDI and the budget re-emphasises Government focus on same. The capital outlay allocated towards the Roads and Highway sector is Rs 0.77 lakh crore. "The allocation is not in lines with the NIP where the centre is involved in providing 25 per cent of the investment,"says CARE Ratings. The budget also proposed to monetise at least 12 lots of highway bundles of over 6,000 Km before 2024, but CARE Ratings says the timely fructification of this proposal holds the key for the sector.

Though Bullet Train project figured again in the budget, it has been a laggard in implementation. While it is envisaged to operate 15 passenger trains and re-development of four stations on PPP basis, the low rate of success in the past does not inspire confidence.

In line with the budget thrust to rural infrastructure, Prime Minister Gram Sadak Yojana (PMGSY) allocations were up 39 per cent to 19,000 crore, even as achievement ratio has fallen by 74 per cent in 2019-20 from 94 per cent in 2016-17, making the budgeted target for fiscal 2021 aggressive. Moreover, rural road construction targets over the next five years under PMGSY III are lower at 125,000 km, compared with 218,000 km constructed over the past five years.

Vimal Kejriwal, MD & CEO of KEC International says, "The budget’s infra focus is expected to provide a significant fillip to KEC. Allocation towards power and renewable energy, and transport infrastructure, upgradation of stations and developing solar in railways, setting up of 100 new airports, 5 new Smart cities and linking one lakh gram panchayats with BharatNet augurs well for our businesses."

CRISIL Research’s analysis of 106 airports already awarded under UDAN reveals that 62 of these remain non-operational due to lack of basic airport infrastructure. An estimated capex of Rs 4,500-5,000 crore is needed for their revival. Thus, plan for 100 more airports would be achieved only with a lag.

Overall, tax exemptions for sovereign funds to increase foreign investor participation across infrastructure sectors is a positive with investments already visible in roads, power and airports.

Power sector too has got some nudge in the budget. Sabyasachi Majumdar, Senior Vice President & Group Head, Corporate Ratings, ICRA Ltd., says, "Shutting down of old thermal power plants will shift generation to newer generation thermal projects and thus provide a moderate boost to their plant load factors (PLF). Abolition of dividend distribution tax and lower tax rates will encourage fresh investments in the power sector, especially renewable energy and transmission sectors."

Housing
Budgetary allocation for Pradhan Mantri Awas Yojana (PMAY) at Rs 27,500 crore is up by 9 per cent over the last fiscal’s RE. PMAY-Urban has an overall target of constructing 1.12 crore houses by 2022. Of these, 1.03 crore houses have been sanctioned as of January 2020. PMAY-Rural has an overall target of 2.95 crore, of which about 0.9 crore units stand completed as of December 2019.

From the affordable housing buyer’s point of view, the additional deduction of up to Rs 1.5 lakh for interest paid on loans taken has now been extended till March 31, 2021.

Hardik Agrawal, CEO of Radha Madhav Developers says, "This budget stimulates the supply of affordable houses a tax holiday is provided on the profits earned by developers of affordable housing project approved by 31st March, 2020. Even in order to minimize suffering in real-estate transactions and provide relief to the sector, FM proposed to increase the limit of transaction from 5% to 10% (of deviation from circle price for tax scrutiny). Overall this was a consoling budget."

Malady & remedy
What is it that made this budget special? It has come in the backdrop of growth deceleration for six consecutive quarters driven by low growth in consumption and investment. The burden of two failed budgets presented in 2019 – before and after the general elections – were also weighing on the Finance Minister. Pre-poll sops were targeted towards the poor and farmers, while the post-poll budget targeted at the companies and businesses.

A drop in private consumption growth played a big role in bringing down GDP growth to an 11-year low. Private consumption growth slowed to 5.8 per cent in fiscal 2020, from 7.2 per cent in fiscal 2019. A dent to incomes, declining household savings ratio and higher household leverage have kept the consumer’s risk aversion high.

Crisil in its analysis of demand side impact of the budget, projected that some support to rural demand was expected from higher allocation to schemes like PMGSY and PMAY, which will augment incomes. "PM Kisan spending for fiscal 2021 has been maintained at the previous fiscal’s budgetary level, but the focus should be on ensuring that part of the amount does not remain unspent," Crisil suggested. Investment growth dropped to one per cent in fiscal 2020 from 9.8 per cent in fiscal 2019. While private investments have been weak, the government’s ability to fund capex also remains constrained. The budget focus on infrastructure spending will support investment to an extent as central PSU investments are projected to decline, says Crisil. However, the rating agency did not exude the same kind of confidence in growth of private investments during in the next fiscal.

Government consumption spending, mostly on the social sector schemes, supported growth in fiscal 2020. "The government has continued to focus on social sector schemes (including those that augment rural incomes, such as PMGSY, PMAY, NREGA and PM Kisan)," Crisil added.

The budget’s support to MSMEs is a "mild positive" for exports going ahead, says Crisil. Decelerating global growth, falling trade intensity, and uncertainties from the US-China trade war are hurting India’s exports. India’s exports is estimated to fall 2 per cent in fiscal 2020, compared with a growth of 12 per cent in fiscal 2019.

However, the budget is a mixed bag for the current problem in the financial sector. While bringing some relief to the beleaguered non-banking finance companies (NBFCs) by expanding scope for recovery of their bad loans is positive, seeking to remove exemptions in personal income-tax is expected to reduce savings and insurance premiums. However, increasing the bank deposit insurance coverage from Rs one lakh to Rs 5 lakh is expected to increase the confidence of bank depositors, which touched its ebb with the recent failure of co-operative banks.

Worst is not closer than it appears
For cement industry to thrive the overall economy has to be robust. The budget has pulled some levers feebly, that may not be enough to spur the economic growth pace. When private sector is not forthcoming to make investment, it is incumbent on the government and the Reserve Bank of India (RBI) to take steps to revive the economy. Even as RBI had cut the repo rate cumulatively by 135 basis points (bps) through calendar 2019, banks have cut lending rates only by just 40-50 bps.

Crisil says, "In the absence of growth kickers, growth pick-up in fiscal 2021 is expected to be largely led by the base effect and supported by somewhat better farm income (led by a good rabi crop) and the delayed impact of monetary easing. Critical to this forecast is the assumption of a normal monsoon in calendar 2020 and benign global crude oil prices."

Kapil Gupta of Edelweiss Research says, "Overall, from a business cycle standpoint, aggregate fiscal push is missing. We think, given weak demand, consolidation could have waited. Thus, the economy, at best, will see a modest bounce aided by liquidity easing, normalisation in farm cash flows amid rising food inflation, and stabilisation in exports. But the virtuous economic cycle may still be distant."

This kind of consensus among analysts leave us with the question: How long we have to wait to see economic revival?

Infrastructure in Budget

  • 100 more airports to be developed by 2024 to support UDAAN Scheme
  • Rs 1.7 lakh crore allocated towards transport infrastructure
  • Development of 5 new smart cities
  • Further incentivising and boosting affordable housing
  • Increased focus on inland water ways
  • Allowing sovereign funds to invest in infrastructure 15 new passenger trains through PPP route

    Past announcements continued:

  • Grand plans announced in the past: National Infrastructure Pipeline (NIP) & Accelerated Development of Highways
  • Provision of Rs. 22,000 cr already provided to support the NIP, to cater to equity support to infra finance companies like IIFCL and a subsidiary of NIIF
  • Bullet train project between Mumbai and Ahmedabad
  • Taxation Measures
    For corporates/ cooperative societies

  • Concessional tax rate for cooperative societies proposed (from 30% to 22%)
  • Concessional tax rate of 15% to new domestic companies extended to electricity generation companies
  • Dividend distribution tax removed; dividend will now be taxed in the hands of individuals
  • Tax concession for sovereign wealth funds of foreign governments

  • – BS SRINIVASALU REDDY

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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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    Concrete

    Digital supply chain visibility is critical

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    MSR Kali Prasad, Chief Digital and Information Officer, Shree Cement, discusses how data, discipline and scale are turning Industry 4.0 into everyday business reality.

    Over the past five years, digitalisation in Indian cement manufacturing has moved decisively beyond experimentation. Today, it is a strategic lever for cost control, operational resilience and sustainability. In this interview, MSR Kali Prasad, Chief Digital and Information Officer, Shree Cement, explains how integrated digital foundations, advanced analytics and real-time visibility are helping deliver measurable business outcomes.

    How has digitalisation moved from pilot projects to core strategy in Indian cement manufacturing over the past five years?
    Digitalisation in Indian cement has evolved from isolated pilot initiatives into a core business strategy because outcomes are now measurable, repeatable and scalable. The key shift has been the move away from standalone solutions toward an integrated digital foundation built on standardised processes, governed data and enterprise platforms that can be deployed consistently across plants and functions.
    At Shree Cement, this transition has been very pragmatic. The early phase focused on visibility through dashboards, reporting, and digitisation of critical workflows. Over time, this has progressed into enterprise-level analytics and decision support across manufacturing and the supply chain,
    with clear outcomes in cost optimisation, margin protection and revenue improvement through enhanced customer experience.
    Equally important, digital is no longer the responsibility of a single function. It is embedded into day-to-day operations across planning, production, maintenance, despatch and customer servicing, supported by enterprise systems, Industrial Internet of Things (IIoT) data platforms, and a structured approach to change management.

    Which digital interventions are delivering the highest ROI across mining, production and logistics today?
    In a capital- and cost-intensive sector like cement, the highest returns come from digital interventions that directly reduce unit costs or unlock latent capacity without significant capex.
    Supply chain and planning (advanced analytics): Tools for demand forecasting, S&OP, network optimisation and scheduling deliver strong returns by lowering logistics costs, improving service levels, and aligning production with demand in a fragmented and regionally diverse market.
    Mining (fleet and productivity analytics): Data-led mine planning, fleet analytics, despatch discipline, and idle-time reduction improve fuel efficiency and equipment utilisation, generating meaningful savings in a cost-heavy operation.
    Manufacturing (APC and process analytics): Advanced Process Control, mill optimisation, and variability reduction improve thermal and electrical efficiency, stabilise quality and reduce rework and unplanned stoppages.
    Customer experience and revenue enablement (digital platforms): Dealer and retailer apps, order visibility and digitally enabled technical services improve ease of doing business and responsiveness. We are also empowering channel partners with transparent, real-time information on schemes, including eligibility, utilisation status and actionable recommendations, which improves channel satisfaction and market execution while supporting revenue growth.
    Overall, while Artificial Intelligence (AI) and IIoT are powerful enablers, it is advanced analytics anchored in strong processes that typically delivers the fastest and most reliable ROI.

    How is real-time data helping plants shift from reactive maintenance to predictive and prescriptive operations?
    Real-time and near real-time data is driving a more proactive and disciplined maintenance culture, beginning with visibility and progressively moving toward prediction and prescription.
    At Shree Cement, we have implemented a robust SAP Plant Maintenance framework to standardise maintenance workflows. This is complemented by IIoT-driven condition monitoring, ensuring consistent capture of equipment health indicators such as vibration, temperature, load, operating patterns and alarms.
    Real-time visibility enables early detection of abnormal conditions, allowing teams to intervene before failures occur. As data quality improves and failure histories become structured, predictive models can anticipate likely failure modes and recommend timely interventions, improving MTBF and reducing downtime. Over time, these insights will evolve into prescriptive actions, including spares readiness, maintenance scheduling, and operating parameter adjustments, enabling reliability optimisation with minimal disruption.
    A critical success factor is adoption. Predictive insights deliver value only when they are embedded into daily workflows, roles and accountability structures. Without this, they remain insights without action.

    In a cost-sensitive market like India, how do cement companies balance digital investment with price competitiveness?
    In India’s intensely competitive cement market, digital investments must be tightly linked to tangible business outcomes, particularly cost reduction, service improvement, and faster decision-making.
    This balance is achieved by prioritising high-impact use cases such as planning efficiency, logistics optimisation, asset reliability, and process stability, all of which typically deliver quick payback. Equally important is building scalable and governed digital foundations that reduce the marginal cost of rolling out new use cases across plants.
    Digitally enabled order management, live despatch visibility, and channel partner platforms also improve customer centricity while controlling cost-to-serve, allowing service levels to improve without proportionate increases in headcount or overheads.
    In essence, the most effective digital investments do not add cost. They protect margins by reducing variability, improving planning accuracy, and strengthening execution discipline.

    How is digitalisation enabling measurable reductions in energy consumption, emissions, and overall carbon footprint?
    Digitalisation plays a pivotal role in improving energy efficiency, reducing emissions and lowering overall carbon intensity.
    Real-time monitoring and analytics enable near real-time tracking of energy consumption and critical operating parameters, allowing inefficiencies to be identified quickly and corrective actions to be implemented. Centralised data consolidation across plants enables benchmarking, accelerates best-practice adoption, and drives consistent improvements in energy performance.
    Improved asset reliability through predictive maintenance reduces unplanned downtime and process instability, directly lowering energy losses. Digital platforms also support more effective planning and control of renewable energy sources and waste heat recovery systems, reducing dependence on fossil fuels.
    Most importantly, digitalisation enables sustainability progress to be tracked with greater accuracy and consistency, supporting long-term ESG commitments.

    What role does digital supply chain visibility play in managing demand volatility and regional market dynamics in India?
    Digital supply chain visibility is critical in India, where demand is highly regional, seasonality is pronounced, and logistics constraints can shift rapidly.
    At Shree Cement, planning operates across multiple horizons. Annual planning focuses on capacity, network footprint and medium-term demand. Monthly S&OP aligns demand, production and logistics, while daily scheduling drives execution-level decisions on despatch, sourcing and prioritisation.
    As digital maturity increases, this structure is being augmented by central command-and-control capabilities that manage exceptions such as plant constraints, demand spikes, route disruptions and order prioritisation. Planning is also shifting from aggregated averages to granular, cost-to-serve and exception-based decision-making, improving responsiveness, lowering logistics costs and strengthening service reliability.

    How prepared is the current workforce for Industry 4.0, and what reskilling strategies are proving most effective?
    Workforce preparedness for Industry 4.0 is improving, though the primary challenge lies in scaling capabilities consistently across diverse roles.
    The most effective approach is to define capability requirements by role and tailor enablement accordingly. Senior leadership focuses on digital literacy for governance, investment prioritisation, and value tracking. Middle management is enabled to use analytics for execution discipline and adoption. Frontline sales and service teams benefit from
    mobile-first tools and KPI-driven workflows, while shop-floor and plant teams focus on data-driven operations, APC usage, maintenance discipline, safety and quality routines.
    Personalised, role-based learning paths, supported by on-ground champions and a clear articulation of practical benefits, drive adoption far more effectively than generic training programmes.

    Which emerging digital technologies will fundamentally reshape cement manufacturing in the next decade?
    AI and GenAI are expected to have the most significant impact, particularly when combined with connected operations and disciplined processes.
    Key technologies likely to reshape the sector include GenAI and agentic AI for faster root-cause analysis, knowledge access, and standardisation of best practices; industrial foundation models that learn patterns across large sensor datasets; digital twins that allow simulation of process changes before implementation; and increasingly autonomous control systems that integrate sensors, AI, and APC to maintain stability with minimal manual intervention.
    Over time, this will enable more centralised monitoring and management of plant operations, supported by strong processes, training and capability-building.

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    Concrete

    Cement Additives for Improved Grinding Efficiency

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    Shreesh A Khadilkar discusses how advanced additive formulations allow customised, high-performance and niche cements—offering benefits while supporting blended cements and long-term cost and carbon reduction.

    Cement additives are chemicals (inorganic and organic) added in small amounts (0.01 per cent to 0.2 per cent by weight) during cement grinding. Their main job? Reduce agglomeration, prevent pack-set, and keep the mill running smoother. Thus, these additions primarily improve, mill thru-puts, achieve lower clinker factor in blended cements PPC/PSC/PCC. Additionally, these additives improve concrete performance of cements or even for specific special premium cements with special USPs like lower setting times or for reduced water permeability in the resultant cement mortars and concrete (water repellent /permeation resistant cements), corrosion resistance etc.
    The cement additives are materials which could be further differentiated as:

    Grinding aids:
    • Bottlenecks in cement grinding capacity, such materials can enhance throughputs
    • Low specific electrical energy consumption during cement grinding
    • Reduce “Pack set” problem and improve powder flowability

    Quality improvers:
    • Opportunity for further clinker factor reduction
    • Solution for delayed cement setting or strength development issues at early or later ages.

    Others: materials which are used for specific special cements with niche properties as discussed in the subsequent pages.
    When cement additives are used as grinding aids or quality improvers, in general the additives reduce the inter-particle forces; reduce coating over grinding media and mill internals. Due to creation of like charges on cement particles, there is decreased agglomeration, much improved flowability, higher generation of fines better dispersion of particles in separator feed and reduction of mill filling level (decrease of residence time). However, in VRM grinding; actions need to be taken to have stable bed formation on the table.
    It has been reported in literature and also substantiated by a number of detailed evaluations of different cement additive formulations in market, that the cement additive formulations are a combination of different chemical compounds, typically composed of:

    1. Accelerator/s for the hydration reaction of cements which are dependent on the acceleration effect desired in mortar compressive strengths at early or later ages, the choice of the materials is also dependent on clinker quality and blending components (flyash / slag) or a mix of both.
    2. Water reducer / workability / wet-ability enhancer, which would show impact on the resultant cement mortars and concrete. Some of the compounds (retarders) like polysaccharide derivatives, gluconates etc., show an initial retarding action towards hydration which result in reducing the water requirements for the cements thus act as water reducers, or it could be some appropriate polymeric molecules which show improved wet-ability and reduce water demand. These are selected based on the mineral component and type of cements (PPC/PSC /PCC).
    3. Grinding aids: Compounds that work as Grinding Aid i.e. which would enhance Mill thru-put on one hand as well as would increase the early strengths due to the higher fines generation/ or activation of cement components. These compounds could be like alkanol-amines such as TIPA, DEIPA, TEA etc. or could be compounds like glycols and other poly-ols, depending on whether it is OPC or PPC or PSC or PCC manufacture.

    Mechanism of action — Step By Step—

    1. Reduce Agglomeration, Cement particles get electrostatically charged during grinding, stick together, form “flocs”, block mill efficiency, waste energy. Grinding aid molecules adsorb onto particle surfaces, neutralise charge, prevent re-agglomeration.
    2. Improve Powder Flowability, Adsorbed molecules create a lubricating layer, particles slide past each other easier, better mill throughput, less “dead zone” buildup.
      Also reduces caking on mill liners, diaphragms, and separator screens, less downtime for cleaning.
    3. Enhance Grinding Efficiency (Finer Product Faster), By preventing agglomeration, particles stay dispersed more surface area exposed to grinding media, finer grind achieved with same energy input, Or: same fineness achieved with less energy, huge savings.
      Example:
      • Without aid ? 3500 cm²/g Blaine needs 40 kWh/ton
      • With use of optimum grinding aid same fineness at 32 kWh/ton 20 per cent energy savings
    4. Reduce Pack Set and Silo Caking Grinding aids (GA) inhibit hydration of free lime (CaO) during storage prevents premature hardening or “pack set” in silos. especially critical in humid climates or with high free lime clinker.
      It may be stated here that Overdosing of GA can cause: – Foaming in mill (especially with glycols) reduces grinding efficiency, retardation of cement setting (especially with amines/acids), odor issues (in indoor mills) – Corrosion of mill components (if acidic aids used improperly)
      The best practice to optimise use of GA is Start with 0.02 per cent to 0.05 per cent dosage test fineness, flow, and set time adjust up/down. Due to static charge of particles, the sample may stick to the sides of sampler pipe and so sampling need to be properly done.
      Depending on type of cements i.e. OPC, PPC, PSC, PCC, the grinding aids combinations need to be optimised, a typical Poly carboxylate ether also could be a part of the combo grinding aids

    Cement additives for niche properties of the cement in concrete.
    The cement additives can also be tailor made to create specific niche properties in cements, OPC, PPC, PSC and PCC to create premium or special brands. The special niche properties of the cement being its additional USP of such cement products, and are useful for customers to build a durable concrete structure with increased service life.


    Such properties could be:
    • Additives for improved concrete performance of cements, high early strength in PPC/PSC/PCC, much reduced water demand in cement, cements with improved slump retentivity in concrete, self-compacting, self levelling in concrete, cements with improved adhesion property of the cement mortar
    • Water repellence / water proofing, permeability resistance in mortars and concrete.
    • Biocidal cement
    • Photo catalytic cements
    • Cements with negligible ASR reactions etc.

    Additives for cements for improved concrete performance
    High early strengths: Use of accelerators. These are chemical compounds which enhance the degree of hydration of cement. These can include setting or hardening accelerators depending on whether their action occurs in the plastic or hardened state respectively. Thus, the setting accelerators reduce the setting time, whereas the hardening accelerators increase the early age strengths. The setting accelerators act during the initial minutes of the cement hydration, whereas the hardening accelerators act mainly during the initial days of hydration.
    Chloride salts are the best in class. However, use of chloride salts as hardening accelerators are strongly discouraged for their action in promoting the corrosion of rebar, thus, chloride-free accelerators are preferred. The hardening accelerators could be combinations of compounds like nitrate, nitrite and thiocyanate salts of alkali or alkaline earth metals or thiosulphate, formate, and alkanol amines depending on the cement types.
    However, especially in blended cements (PPC/PSC/PCC the increased early strengths invariably decrease the 28 day strengths. These aspects lead to creating combo additives along with organic polymers to achieve improved early strengths as well as either same or marginally improved 28 days strengths with reduced clinker factor in the blended cement, special OPC with reduced admixture requirements. With use of appropriate combination of inorganic and organic additives we could create an OPC with substantially reduced water demand or improved slump retentivity. Use of such an OPC would show exceptional concrete performance in high grade concretes as it would exhibit lower admixture requirements in High Grade Concretes.
    PPC with OPC like properties: With the above concept we could have a PPC, having higher percentage flyash, with a combo cement additive which would have with concrete performance similar to OPC in say M40/M50 concrete. Such a PPC would produce a high-strength PPC concrete (= 60 MPa @ 28d) + improved workability, durability and sustainability.
    Another interesting aspect could also be of using ultrafine fine flyash /ultrafine slags as additions in OPC/PPC/PSC for achieving lower clinker factor as well as to achieve improved later age strengths with or without a combo cement additive.
    The initial adhesion property at sites of especially PPC/PSC/PCC based mortars can be improved through use of appropriate organic polymers addition during the manufacture of these cements. Such cements would have a better adhesion property for plastering/brick bonding etc., as it has much lower rebound loss of their mortars in such applications.
    It is needless to mention here that with use of additives, we could also have cement with viscosity modifying cement additives, for self-compaction and self-leveling concrete performance.
    Use of Phosphogypsum retards the setting time of cements, we can use additive different additive combos to overcome retardation and improve the 1 day strengths of the cements and concretes.

    About the author:
    Shreesh Khadilkar, Consultant & Advisor, Former Director Quality & Product Development, ACC, a seasoned consultant and advisor, brings over 37 years of experience in cement manufacturing, having held leadership roles in R&D and product development at ACC Ltd. With deep expertise in innovative cement concepts, he is dedicated to sharing his knowledge and improving the performance of cement plants globally.

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