Union Budget of 2021-22 presents several opportunities to give the real estate sector a shot in the arm. Given that real estate contributes more than 8 percent to the Indian economy, it has justifiable expectations.After all, the realty industry remains one of the most precise bellwethers of the state of India?? economy.
Multiple measures were announced by the Government in the year 2020 to beat the unprecedented impact of the COVID-19 pandemic on the overall economy and the real estate industry specifically. These measures are commendable, but considering the depth of pain of the industry;are not enough.The housing industry needs focused measures to foster demand. This year, the real estate industry expects much more apart from single-window clearance and industry status.
Affordable housing is very likely to get another booster dose. However,the budget also needs to focus on the larger market as more than ever before,homebuyers and investors need focused tax incentives to get mobilized. Also, as the government is aware, developers??liquidity woes need to be alleviated to forestall further market mayhem. The top one in the wish list is GST waiver for under-construction homes. Even a limited period waiver of GST will reduce overall property cost and thus push demand for under-construction homes, which have been slacking presently. The earlier one, alimited-period stamp duty cut in Maharashtra significantly boosted demand in both MMR and Pune. The most recent one has been reduction by 50 per cent in premiums charged on construction till December 31, 2021 by Maharashtra government is a welcome measure. The other expectation is hike the Rs 2 lakh tax rebate to at least Rs 5 on housing loan interest rates under Section 24 of the Income Tax Act lakh to generate healthier housing demand.
On the other hand the cost of input materials for real estateis on rise. Steel prices are set to go up further, despite the deep concern raised by the user industry.
Incidentally, hot rolled coil prices have increased 46 per cent to Rs 52,000 per tonne in November compared to Rs 37,400 per tonne in July last year. Rebar TMT, which are used in the housing and construction sectors, have touched Rs 50,000 a tonne.Amid rise in prices, Punjab industry asked Centre to ban export of steel for 6 months. Steel is one of the basic raw materials for the engineering industry. It is processed and after value addition, sold as finished products to automotive, tractor manufacturing, hand tool companies etc. It is an important component in the bicycle industry as well.
The cement industry has started recovering slowly from May 2020, given the pent-up demand and the improved rural demand.The industry overall is observing a production discipline. Prices in Maharashtra are up by around 10 per cent at Rs 354 a bag, supported by higher prices in the South, which is a key supplier to the states. The same for Gujarat remained steady up 3% YoY at Rs 350 a bag. As a result, prices in the West are currently up 1%(6% YoY) at Rs 352 a bag. The price rise is going to have a cascading effect on the cost of construction.
As the government looks to steer the pandemic-battered economy and push growth, the Finance Minister comes with a promise ??ever before??like Union Budget. That must deliver as per its promise else we will be waiting for Godot.
Jignesh Kundaria, Director and CEO, Fornnax Technology
India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.
According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.
Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.
The Regulatory Push Is Real
The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.
Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.
Why Indian Waste Is a Different Engineering Problem
Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.
The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.
Engineering a Made-in-India Answer
At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.
Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.
Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.
The Investment Case Is Now
The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.
The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.
The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.
The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.
About The Author
Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.
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