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India’s net zero ambitions: The economic rebalancing

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The year 2050 is not far off while the enormous challenge of reducing carbon emissions stares at not only the developed nations, but developing nations as well. This is a rebalancing that encompasses several transitions in the economy from financial investments in the right technology and infrastructure interfaces, industrial and social transitions as well. While the need for financial investments is of paramount importance, one cannot ignore the deep impacts of de-carbonising the economy on people and livelihood of a large proportion of the population; the skills and expertise to cope with the future needs of a de-carbonised economy must be attended to right away.

The EU gives us some direction as they were the early starters, between 1990 and 2017, EU reduced Carbon emission by 22 per cent, while the GDP increased by 58 per cent thus decoupling greenhouse gas emissions from the economic growth. This came from large scale electrification of the energy system coupled with deployment of renewables decarbonisng energy supply and significantly reduce dependency on other third country suppliers. The improvement of energy efficiency and industrial modernization followed suit, where waste reduction and recycling took center stage.

We can take examples from two of the most energy intensive industries, cement and aluminum and the progress in the last two decades has been significant. Take Germany or Poland and the shift started from landfill laws, that became more and more stringent thus bringing in enormous focus on recycling. Take municipal waste and one would see that entire municipal waste got recycled and both these countries do not use any fossil fuels in their cement kilns. The industrial waste heat is recycled into household electrification and heating needs and very large industrial complex could be built closer to the towns because it helped to significantly reduce wastes in all forms, especially energy that could be diverted to household use, while municipal wastes could be used as fuel in the industrial heating.

Recycling of waste is all pervasive in all advanced economies of Europe thus bringing in the ten level hierarchy of progress ending with Refuse (not producing stuff) and going down the order as follows: rethink, reduce, re-use, repair, refurbish, remanufacture, repurpose, recycle and recover.

Decarbonising the transport sector by using alternative means of transport, connected and automated driving combined with the roll-out of electric vehicles and enhanced use of alternative fuels has started to give rich dividends as the Transport emissions form 24 per cent of all emissions and is a tall order. For a large economy like India the waste factor and inefficiencies of logistics alone takes away the bulk of the carbonisation needs, building efficient infrastructure and sharing the infrastructure efficiently are as important as working on electrification of mobility.

Most modern cities in Europe have moved their public transportation systems from fossil fuels completely and per capita emission has reduced by leaps and bounds as the shift from individual vehicles to public vehicles is at the root of the puzzle. Zurich for example has not increased its private car parking space for almost the last decade, thus restricting the number of vehicles that can enter the city at any point of time.

But reaping first mover benefits by modernising existing installations and investing in new carbon neutral and circular economy compatible technologies and systems will need routing of financial investments into several buckets that will put pressures on the existing expansion plans of several fossil fuel consuming industries, habits, systems and habitats. The investments have to be carefully planned in transportation infrastructure and systems, energy transition to renewable and smart grid solutions (transmission and distribution landscape) including storage systems and in smart cities that automatically create the network of carbon emission neutral solutions to everything.

This calls for investments on a massive scale as solar, wind and all renewable energy cannot be directly injected into the grid without proper storage systems in place that will be able to match supply with demand at every instant; without these the rise of renewable energy solutions will be severely limited. Connected systems that are interoperable and building on a smart network is at the core of the EU success stories.

Turning to the creation of new jobs, the focus must shift to resource allocation in efficient land, water and air usage and for sustainable agriculture, forestry and marine systems. EU has made dramatic progress here and the emission reduction in agriculture and in construction has been brought about by transitions to new technologies creating jobs.

Circular economy for a country like India must start with alternate employment opportunities for those who are currently employed in the non-renewable sectors of the economy and the puzzle can only be solved if the new skills of the circular economy can be worked on right from the schools. Here more than the investments, the intent to decouple existing economic growth drivers from carbon dependence is itself an arduous task.

ABOUT THE AUTHOR:

Procyon Mukherjee is an ex-Chief Procurement Officer at LafargeHolcim India.

Concrete

Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore

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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.

Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.

The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.

The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.

In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.

Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.

Expanding market reach

Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”

With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.

The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.

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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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