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Concrete

Core sectors output grew marginally by 0.1% in Jan 2021

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In January 2021, the eight core sectors output grew marginally by 0.1 per cent compared with 0.2 per cent in December 2020 and 2.2 per cent in the corresponding month last year. The growth in the last two months has been positive albeit anaemic and to some extent this reflects weakness in the physical production. There has been a broad based decline across all sectors except fertilisers, steel and electricity. The core sector output for December 2020 has been revised upwards from -1.25 per cent to 0.2 per cent.

The cumulative index of eight core sector during April-January 2021 registered a de-growth of 8.8 per cent on account of the nation-wide lockdown imposed in March which adversely impacted the industrial production compared with positive growth of 0.8 per cent in the corresponding period last year. All sectors except fertilisers contracted during this period. Double digit contraction was registered in natural gas, refinery, steel and cement.

Key highlights

Coal production contracted by 1.8 per cent registering de-growth for the first time in the last five months, primarily on account of a high base effect.

Crude oil production fell by 4.6 per cent in January 2021. Technical mishaps due to COVID-19 implications, reservoir issues and shut in of wells and delays in field development activities have led to the fall in production. Domestic production has been falling with the ageing of existing fields and muted response from the industry to take up new projects, mainly due to lack of adequate incentives. Moreover, higher import of crude oil and limitations on domestic exploration have weighed on the crude oil production.

Natural gas production contracted by 2 per cent in January 2021 mainly due to a fall in output of a major gas producer/explorer. Though it continued to remain in the negative territory there has been a sequential improvement in output compared with -7.2 per cent growth in the previous month.

Refinery production fell by 2.6 per cent in January 2021. Refinery production continued to remain in the negative territory for the 11th consecutive month. However, refinery capacity utilisation for the month was 105 per cent and it has been improving with each passing month indicating that the economy is slowly reflating and getting back to normalcy.

Fertilisers production registered a growth of 2.7 per cent in January 2021. Increase in fertilizer production can be ascribed to build-up of stocks by companies and increase in production of Complex fertilizers and DAP. The demand for these fertilizers is usually high during the rabi season.

Steel output grew by 2.6 per cent after contracting over November-December 2020. Higher automotive sales, robust demand from rural segment on the back of good monsoon and government spending on infrastructure has led to faster ramp up in production levels.

Cement output registered a de-growth of 5.9 per cent in January 2021. Slow pick up in institutional government projects is the key reason for this fall.

Electricity production grew by 5.1 per cent registering positive growth for the 5th consecutive month as a result of recovery in business sentiment and services.

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Going ahead the growth in the eight core sectors will be conditional upon the pace of economic recovery and high base effect. However, there continues to be uncertainty over re-imposition of Covid-19 restrictions amid rising level of infections. The IIP growth for the month can be positive (but less than 1 per cent) contingent upon support by consumer oriented industries.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Akanksha Bhende, Associate Economist, CARE Ratings

Disclaimer: This report is prepared by CARE Ratings Limited. 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.

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Concrete

30-Day Traffic Diversion In Place For CC Road Works In Madhapur

Diversions in place from May 16 for cement concrete road works

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The Cyberabad Traffic Police issued a traffic advisory as road works begin for the laying of a cement concrete (CC) road from Jaya Shankar Statue to RRR Restaurant at Parvathnagar in Madhapur limits. The advisory indicated that traffic diversions will be in place for 30 days from May 16 to ensure the smooth flow of vehicles and to minimise congestion on the affected stretch. The measure aims to balance uninterrupted construction activity with the movement needs of commuters.

Traffic moving from Toddy Compound towards Parvathnagar village will be diverted at Parvathnagar junction towards Sunnam Cheruvu and the 100 feet road. Local motorists and public transport operators have been advised to follow the diversionary route as directed by traffic personnel on duty. Alternate routes and signage have been planned to mitigate delays and to manage peak hour congestion.

Police officials said the diversion had been planned to facilitate uninterrupted road works while maintaining traffic movement in the area. Commuters were urged to plan their travel accordingly and to cooperate with traffic staff managing the stretch. Authorities indicated that enforcement of diversions would be active and that violations could attract penalties.

The 30 day schedule is intended to allow contractors to complete the laying and curing phases with minimal interruption to vehicular flow. Residents and businesses in adjacent localities have been advised to factor the diversion into deliveries and travel plans. The traffic police promised continuous monitoring of the works and the operational diversions and emphasised that temporary inconvenience was necessary for longer term improvement of the road network. Traffic personnel will be stationed at key junctions and additional signage and temporary markings will be displayed to guide motorists and pedestrians through the revised alignments while public transport services will follow the diversion where feasible and operators have been asked to adjust timetables to minimise disruption.

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Concrete

HeidelbergCement India Receives Consent For Khandwa Grinding Unit

Consent granted by Madhya Pradesh Pollution Control Board

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HeidelbergCement India (HeidelbergCement India) has received regulatory consent to establish a cement blending and grinding unit at Village Dongaliya, Tehsil Punasa, District Khandwa in Madhya Pradesh. The consent was granted by the Madhya Pradesh Pollution Control Board under the Water (Prevention & Control of Pollution) Act, 1974 and the Air (Prevention & Control of Pollution) Act, 1981 and is dated 17 May 2026. The company disclosed the development in a filing made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The project plan envisages procurement of long term availability of fly ash and the allotment of land on lease for setting up the unit. The proposed facility is described as a blending and grinding installation which will process cementitious materials sourced from nearby operations and suppliers. Company filings state the measures required to secure raw material logistics and statutory compliance before commencing construction.

The addition of a grinding unit in Khandwa is intended to strengthen regional supply and improve logistical efficiency by reducing haulage distances for finished product. The unit is expected to complement existing capacities in central India and to offer flexibility in product mix through blending operations. The reliance on fly ash as a supplementary cementitious material will necessitate long term supply agreements with thermal power producers and coordination with waste utilisation policies.

The disclosure to the regulator and to the stock exchanges follows standard corporate governance practice and aims to keep investors apprised of capital expenditure initiatives. The company indicated that subsequent permits and clearances would be sought in accordance with applicable environmental and land use rules. The project is presented as part of HeidelbergCement India’s broader strategy to optimise capacity distribution and to respond to regional demand dynamics.

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Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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