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Opportunities for MSW in India

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With urbanisation and industrialisation increasing around the world (despite a temporary COVID-19 setback), the issue of waste management and particularly of municipal solid waste will be a critical challenge to sustainable development.

Global waste production is expected to reach 27 billion tonnes per year by 2050, a third of which will be generated in Asia.1 India will be a major contributor: it currently generates more than 150,000 tonne per day of solid waste, approximate 54.75 million tonne (MT) per year.2

The government steps in To tackle this growing pile of waste ??much of which has traditionally ended up in landfills ??the Indian government has issued two directives:

Guidelines on Usage of Refuse Derived Fuel in Various Industries

Central Public Health and Environmental Engineering Organisation; Ministry of Housing and Urban Affairs (September 2018).

Guideline Document Uniform Framework for Extended Producers Responsibility

Under Plastic Waste Management Rules, 2016; Ministry of Environment, Forest and Climate Change (June 2020)

The first of these ??which is now in force ??aims to prevent the landfill of waste that are ??ombustible in nature but are not recyclable such as soiled paper, soiled cloth, contaminated plastics, multi-layer packaging materials, other packaging materials, pieces of leather, rubber, tyre, polystyrene, wood, etc.??

The second of ??which is still in consultation stage ??deals with plastic waste. Among other things, it will make companies that use plastic packaging for their products responsible for collecting and disposing of that packaging.4 One solution to both of these challenges is the substitution of fossil fuels by alternative refusederived fuels (RDF) at cement plants and thermal power plants.

The use of waste as an alternative fuel in the cement industry has a longstanding history, particularly in Europe, where substitution rates can reach well over 50 per cent and companies are pushing to reach 100 per cent. This is supported by generous gate fees paid by waste producers to cement companies and tight carbon emissions regulations (some alternative fuels are considered carbon neutral under EU regulations). Indeed, the use of RDF and other alternative fuels is acknowledged as a key step in the cement industry?? path to carbon neutrality, alongside energy efficiency and the use of supplementary cementitious materials.5

To encourage the use of RDF, the expenses so incurred for transportation of RDF, beyond 100 km distance may be booked by industries under their Corporate Social Responsibility (CSR) commitment as per Section 135 of the Companies Act, 2013.3 RDF in India

The Cement Manufacturers Association (CMA) had expressed its commitment towards disposal of wastes and plastics and use of alternate fuels and raw materials.6 The past President (2018 to 2020) of CMA, Mr. Mahendra Singhi, commented; ??he Indian cement industry has been able to use almost 75 million tonnes of waste as a replacement of raw materials and fuels??

Mr. Singhi, who is also the MD and CEO of Dalmia Cement (Bharat) Ltd, added that the Indian cement sector has played an important role in the transition to a low carbon economy and is fully committed towards efficiency in terms of clean and green operations.

As part of the new guidelines, cement companies are now required to utilise RDF in any kiln located within 400 km of an RDF production facility.

Unusually, it is also the cement companies that are required to bear the cost of this rule, for example; there are no gate fees payable for taking waste and cement companies have to pay the transportation fees for the first 100 km radius of the plant.

Managing the increasing quantity of MSW generating in India is a big challenge. A high percentage of MSW including non-recyclable combustible fraction ends up in landfills. In spite of enough demand a supply of RDF by vibrant private sector in waste management and cement industry and existence of enabling policy framework of SWM Rules 2016, current on ground situation is not very promising due to several challenges as depicted below:

The regulation envisages a rising scale of substitution rate from 6 per cent in the first year up to 15 per cent in the third year, although an evaluation of the amount of available RDF vs the energy needs of the cement industry suggest that a thermal substitution rate of 7.1 per cent may be the maximum achievable (Table 1).

The data captures the details of daily exposed garbage. There is a significant quantum of legacy wastes which needs to be processed to make it usable RDF.

A Partner for Sustainable Waste Management

The new regulations position the cement industry as a key partner in solving India?? waste challenges.

However, there are certain challenges in its processing. Notably, the quality of RDF currently produced in India is much lower than that of in other regions, with lower calorific value and much higher moisture content. In worst scenario the ??ombustible wastes??which ??hould at least be heat neutral??and ??hould not affect the Clinker quality??

The requirement for Indian cement companies to finance the capex required to begin using RDF has also focused the market on economically viable, simple and standard alternative fuels feeding systems to meet the possible substitution rate up to 7 per cent. Going forward, to increase substitution rates, the cement industry needs accuracy in feeding and dosing system, efficient process and alternative fuel material analysis. To support these requirements, cement industry demands proven technologies like; rotor weigh-feeders, a HOTDISC? Combustion Device with solid alternative fuel ash exaction possibilities and utilisation of solid alternative fuel ash, chlorine gas by-pass system and utilisation of chlorine rich dust.

Cement manufacturers like, Dalmia Cement, which targets higher levels of alternative fuel substitution rates, reportedly up to 100 per cent, as part of a corporate ambition to manufacture the greenest cement in the world.7 FLSmidth is supporting this ambition as the supplier of Dalmia Cement?? new plant at Rajgangpur, where the equipment and design of the plant were carefully selected to maximise the potential for alternative fuels and raw materials use, as well as to reduce energy efficiency and heat loss.Tackling plastics Plastic waste has garnered recent attention due to littering of crucial ecosystems, most notably that of oceans. According to one estimate, between 4.8 MT and 12.7 MT of plastic waste enters the oceans each year.8 Reversing this damaging pattern has been recognised as integral to sustainable development and is a key target of the fourteenth UN Sustainable Development Goal.9 As part of the solution to this challenge, the Indian government has introduced rules that make use and disposal of plastic packaging as the responsibility of the generator. This impacts the Indian cement industry in a couple of different ways.

Firstly, as a user of plastic packaging for its products ??and with bagged cement playing a larger role in the Indian cement market than in other regions ??the industry is faced with the need to set up systems to collect that plastic or switch to alternative paperbased packaging.However, the industry may also find itself (again) as a crucial part of the solution, due to its ability to utilise plastic waste as an alternative fuel. One opportunity arising from the regulations may be for the cement industry to partner with others that use plastic packaging to create efficient collection and processing systems for plastic waste that sees the non-recyclable elements made available for use in cement kilns.

Conclusion

Waste is a serious challenge to sustainable development. Finding ways to use the non-recyclable elements in a productive way is therefore key to

setting humanity on a path to a cleaner, greener future. With its huge capacity to utilise RDF, the cement industry has a vital role in doing this. And the benefits of doing so reach far beyond (emptier) landfills. RDF substitution of fossil fuels reduces both the cement industry?? carbon emissions, as well as the necessity to mine fossil fuels. Supporting the use of alternative fuels is therefore a priority for FLSmidth through our MissionZero ambitions to enable zero-emissions cement production.

As part of this, we have committed to providing cement producers the solutions needed to operate with 100 per cent alternative fuels. This goes beyond the provision of equipment to include our significant process experience ??from initial reception and handling of alternative fuels through their impact on conditions in the kiln and on the final chemistry of cement. This deep understanding of the process enables us to assist any plant in solving the challenges that alternative fuels bring ??whether just starting out or reaching for 100 per cent.

References

1. KUMAR, S., et at., 2017, ??hallenges and opportunities associated with waste management in India?? R. Society open sci. https://doi. org/10.1098/rsos.160764

2. AGGARWAL, M., 2019, ??umbai and Delhi generate most solid waste among metro cities??The Wire. https://thewire.in/environment/indias-megacities-mumbai-and-delhi-sitting-ona-pile-of-waste

3. Ministry of Housing and Urban Affairs, 2018,Guidelines on Usage of Refuse Derived Fuels in Various Industries, p. X.

4. This principal is known as ??xtended Producer Responsibility??

5. For example, see: IEA, 2018, Technology Roadmap:

Low-Carbon Transition in the Cement Industry, p. 28.

6. Indian cement industry commits towards waste management. https://www.outlookindia.com/ newsscroll/indian-cement-industry-commitstowards- waste-management/1630881

7. Global Cemfuels, 2019, ??almia Cement commits itself to 100 per cent RDF and biofuels by 2030?? https://www.cemfuels.com/news/item/3150-dalmia-cement-commits-itself-to-100-rdf-andbiofuels- by-2030

8. JAMBECK, J.R., et al., (2015) ??lastic waste inputs from land into ocean?? Science vol. 347, issue 6223, pp. 768-771. https://science.sciencemag. org/content/347/6223/768

9. Goal 14: Conserve and Sustainable Use theOceans, Seas and Marine Resources. https://www.un.org/sustainabledevelopment/oceans/

ABOUT THE AUTHOR: The article is authored by Dr Alka Mishra, Head of Sustainability Solutions, FLSmidth India

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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