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Wish list Budget 2013

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Indian Cement Industry has a total capacity of around 340 million tonne and ranks second in the world, producing quality cement that matches the world’s best and has its footprints in around 30 countries of the world through cement exports. The Working Group on Cement Industry for the XI Five Year Plan (2007-12) had set a target of cement production at 269 mnt and the capacity needed at 298 mnt at the end of the Plan i.e. 2011-12. Against this, the Cement Industry surpassed the target and created an installed capacity of over 340 mnt by the terminal year of the 11th Plan resulting in surplus capacity situation.

Though cement is the most essential infrastructure input, the tax on cement continues to be the highest among the items required for building infrastructure. The levies and taxes on cement in India are far higher compared to those in countries of the Asia Pacific Region. Average tax on cement in the Asia Pacific Region is just 11.4 per cent with the highest levy of 20 per cent being in Sri Lanka.

In this backdrop, the cement industry would like to submit the following suggestions in order to help the industry sustain a healthy growth:

1. Uniform and specific rate of excise duty

Till 28-2-2007, specific rate of excise duty was applicable on cement; and thereafter, up to 28.2.2011 different rates of Excise duty based on Retail Sale Price were levied for cement. However, in the Union Budget 2011-12 the Excise Duty Rates on cement were replaced with composite rates having a 10 per cent ad valorem and specific component of Rs 80 and Rs 160 per tonne, based on Retail Sale Price. In the Union Budget 2012-13 the excise duty on cement increased from 10 to 12 per cent ad valorem whereas specific duty was at Rs.120/- per tonne of cement. Cement has also been notified under Section 4A of the C.E. Act. Accordingly, the value for the purpose of charging duty on packaged cement is determined on the basis of the Retail Sale Price (RSP). Abatement of 30 per cent from the RSP has also been notified. The existing rates of excise duty on cement are as under:

It is clear from the above that the incidence of excise duty on cement is still on the higher side for consumers other than industrial/institutional as an additional specific rate of duty of Rs.120/- per tonne is payable by them. Also the basis of levying Excise Duty is different i.e. 12 per cent on RSP less 30 per cent of RSP (as abatement) and 12 per cent on Transaction Value for sale to industrial/institutional consumers. Thus, the current regime makes for different sets of duties per tonne of cement payable by a producer on any given day.

Excise duty rates on cement are one of the highest and next only to luxury goods such as cars. Other core industries such as coal steel attract duty at around 5 per cent. Cement is one of the core infrastructure industries and it requires large-scale investments and capacity additions in view of the expected GDP growth and projected demand for cement over the medium to long term.

It is well-known that today the industry suffers from excess of surplus capacity of cement in the country and cement market is on bearish trend. Therefore, for growth of cement industry Government may kindly reduce excise duty on cement and clinker.

To encourage cement industry and to bring it at par with other core and infrastructure industries, the excise duty rate be rationalized from 12 per cent to 6-8 per cent and a holistic view may be taken to scrap the specific rate of duty of Rs.120/- per tonne in the interest of common man’s housing needs. Also, the duty structure be simplified to be either on specific rate per MT or on advalorem basis and without relating to MRP etc.

2.Excise Duty on Coal, Lignite, Coke, Fly Ash etc.

In the Budget for the year 2011-12, 1 per cent excise duty was levied on various items including items like coal, lignite, coke, flyash etc which are important for the industry. The aforesaid duty was increased to 2 per cent (except on coal, on which 1 per cent duty continued) in the budget for the year 2012-13. As no Cenvat Credit is available for aforesaid + per cent Excise duty paid, it has increased the cost for the manufacturers. It is also worthwhile to mention that the prices of coal have increased sharply and the industry is already absorbing oClean Energy Cessö levied earlier.

It is suggested that levy of aforesaid duty may be withdrawn or Cenvat credit be made available for the duty paid.

Customs Duty on pet coke, gypsum and other inputs

Cement Industry has been subject to perennial shortages of coal, the main fuel. Approx, only 39 per cent of linked coal is received by the member cos. against their total fuel requirement for kiln under the coal linkage Scheme. This adversely impacts the Cement Industry through increased fuel cost, as the balance requirement of fuel has to be necessarily procured from open market/e-auction, import of coal and use of alternative fuel like Pet coke at a substantially higher rate than linked coal.

In the Union Budget 2012-13, steam coal was fully exempted from the basic custom duty. This provided some much-needed relief to the cement industry on import of coal. However, this relief alone cannot fully meet the fuel shortage for the cement industry. Pet coke is an important material as fuel, which is used in the cement industry. In view of the reducing availability of coal, the cement industry has been resorting to increased usage of pet coke. The indigenous availability of pet coke being short, more and more pet coke is imported to make up shortage of coal.

Gypsum is another important input. Because of the limited availability of indigenous Gypsum, the industry is depends on imports.

Pet-coke and Gypsum attract 2.5 per cent duty, if imported, while there is no import duty on cement import. This leads to an anomaly situation that "Import Duty on inputs is higher than a finished product".

Therefore, it is requested that government may kindly scrap import duty on pet coke, gypsum. Levy of customs duty on imports.

Presently, import of cement into India is freely allowed without having to pay basic customs duty. However, all the major inputs for manufacturing cement such as limestone, gypsum, pet coke, packing bags etc attract customs duty. In this situation duty-free imports cause further hardship to the Indian cement industry apart from the security concerns that are caused by import of cement from Pakistan.

Therefore, it is requested that to provide a level- playing field, basic customs duty be levied on cement imports into India.

Alternatively, Import duties on goods required for manufacture of cement be abolished and freely allowed without levy of duty.

Withdrawal of excise duty on flyash

Excise duty has been levied on fly ash, which is a waste product generated on burning of coal in the boiler of power plant vide notification no. 1/2011 – CE and 2/2011 – CE.

In this regard the decision of the Hon’ble Supreme Court in case of Union of India Vs. Ahmadabad Electricity Co. Ltd., in 2003 (158) ELT 3 (SC) has settled the issue that use of coal as fuel to produce steam resulting in fly ash as a byproduct cannot amount to manufacture.

There is no change in the process generation of fly ash viz. a waste generated on burning coal in the boiler, therefore, the above judgment still holds good & hence fly ash generation should not be treated as manufacture and no Excise Duty on fly ash be levied.

Treatment of waste heat recovery as renewable energy

Energy cost is a very substantial part of the cost of producing cement, as indeed, it is for many other industries. The prices of conventional energy resources are rising higher and higher and further, greater use of these is adversely affecting the environment. Also, various Government are imposing renewable energy obligations on the industry. Looking at all the above, the cement industry has been putting up Waste Heat Recovery plants so as to derive more energy from the same energy resource. In a way, this is akin to green energy. All of this requires further substantial capital investments.

To help the industry in its endeavor to produce more such environment-friendly energy, it is requested that such energy generation be treated as Renewable Energy Source.

Abolition of Import Duty on Tyre Chips

Cement industry is an energy-intensive industry and requires huge amounts of energy resources. However, it does not get adequate supplies of domestic coal and hence has to resort to expensive imported coal.

To meet its requirements, the industry has been developing alternative energy sources like tyre chips etc. However, tyre-chips is presently put under the "negative list" of imports, whereby the same cannot be imported into India. To increase supply of energy sources as well as for conserving the domestic energy sources it is necessary, in the National Interest, that tyre chips be allowed to be imported by removing it from the Negative list and by reducing import duty on the same to ZERO.

Classifying Cement as "Declared Goods"

Cement industry is one of the basic and core infrastructure industries. However, unlike other similar industries/goods, cement is subject to higher rates of taxation. It is requested that Cement be stipulated as "Declared Goods" under Section 14 of Central Sales Tax Act, so that it is put on an equal footing with other core sector goods like coal and steel.

Tax exemption to Certified Emission Reduction (CER) credits under Clean Development Mechanism

The Clean Development Mechanism (CDM) allows industrialised countries to meet their emission reduction commitments under the Kyoto Protocol by purchasing carbon credits from developing countries.

India does not have any carbon emission obligations under Kyoto Protocol. However, Indian enterprises are entitled to earn carbon credits.

As per proviso (ii) to Sec-28(va), any sum received as compensation, from the multilateral fund of Montreal Protocol on substances that deplete the Ozone Layer under United Nations Environment Program, in accordance with the terms of agreement entered into with the Govt. of India, is not taxable.

To motivate the corporate sector for reduction in carbon emission, receipt from CER credit should be exempted from tax.

Exemption to Cement Industry u/s 80-1A

As per provision of Sec. 80-IA(4), deduction is allowed on income derived by any enterprise carrying on the business of (i) developing, or (ii) operating and maintaining or, (iii) developing, operating and maintaining any infrastructure facility.

Since for developing infrastructure facility, cement Industry plays a major role by providing basic material i.e. cement, 80-IA benefit should also be extended to cement Industry.

It is also justifiable for the survival of cement sector which is adversely affected due to increase in cost of production and surplus of capacity as compared to demand, resulting in prices being under pressure.

Exemption to Power Plants U/S 80-IA Power is the critical infrastructure on which the socio-economic development of the country depends. The growth of the economy and its global competitiveness hinges on the availability of reliable and quality power. The demand of power in India is enormous and is growing steadily. India is the world’s sixth largest energy consumer, accounting for about 3.5 per cent of the world’s total annual energy consumption.

In view of the emphasis by Planning Commission to increase the power generation in India, it would be in line with the vision of Planning Commission to continue the exemption to power plants till the demand-supply gap gets bridged.

As per provision of Sec. 80-IA (4) (iv), profit earned by an undertaking which is set-up for generation or generation and distribution of power, if it begins to generate power up to 31st Mar-2012, is exempted.

In view of the scarcity of power & to promote the Power Plants, it is suggested to continue the exemption if the power plants are commissioned by 31st Mar-2015.

Goods & Service Tax (GST)

Central Government is seriously considering introducing GST w.e.f. 1.4.2013. In this regard, the following suggestions may kindly be considered before introduction of the new tax regime:

a) Single Rate of Tax: Central Government has made a proposal to State Government for dual rate under GST which would be brought to single rate over a period of 3 years. However, it is suggested that single rate may kindly be introduced from the first year itself, so that all disputes/litigation towards classification can be avoided from the first year itself.

b) Common Law & enforcement: The Basic purpose behind introduction of GST is simplicity and uniformity of the tax law throughout India. Though the Empowered committee of State Finance Ministers (EC) has agreed to introduce Dual GST with separate Act for SGST to be levied by each state, it may be ensured that there is uniformity in the law to be enacted by various states and process/procedures of different states are similar, as otherwise, the basic purpose behind the introduction of GST would get defeated.

In this regard, it is suggested that any change in the statute of any state, after introduction of GST, be made only with the concurrence of all states.

c) Cenvat/Input tax Credit: Input Tax Credit of tax paid is available under present Excise/Service Tax/VAT laws and the same is presumed to be continued under GST regime. However, this area attracts most of the litigation and hence the criteria/process for availing Input tax credit be simple and unambiguous. To achieve this purpose, the following suggestions are submitted:

i) Input tax credit may be made available for all the inputs and capital goods in or in relation to manufacturing and business activities.

ii) No condition be imposed for availing Input tax credit as long as it relates to the business or industrial activity.

iii) Exclusion (negative list) for availment of Input Tax Credit in respect of items used for or in relation to manufacture be abolished.

iv) 100 per cent input tax credit may be allowed on Capital Goods in the year of purchase itself and conditions like capitalisation/put to use not be imposed.

d) Common dispute resolution mechanism: To reap the full benefit of GST, it is suggested that the mechanism for dispute resolution prescribed may be common throughout all the states.

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Economy & Market

We have invested in renewable energy projects

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Rajesh Kumar Nayma, Associate General Manager – Environment and Sustainability, Wonder Cement, in conversation with Kanika Mathur about CCUS technology.

Wonder Cement Limited (WCL), a leading player in the cement industry, is committed to sustainable practices and innovation in its operations. Rajesh Kumar Nayma, Associate General Manager – Environment and Sustainability at WCL, shares insights into the company’s efforts to integrate Carbon Capture, Utilisation, and Storage (CCUS) technology to combat climate change. Through advanced processes and renewable energy initiatives, WCL is paving the way for a greener cement industry.

How is your company incorporating CCUS technology into its operations to promote sustainability?
To combat climate change and achieve Net Zero emissions by 2060, Carbon Capture, Utilisation, and Storage (CCUS) technology will play a pivotal role. Wonder Cement Limited (WCL) is actively collaborating with various technology providers to support this journey. Efforts include segregating greenhouse gas (GHG) emissions from stacks, implementing oxy-fuel technology, electrifying kilns, utilising 100 per cent solar energy within plants, and eliminating fossil fuel consumption.
WCL has conducted a comprehensive GHG inventory aligned with India’s COP26 commitments, aiming to achieve net-zero emissions. Technological innovations such as the installation of a 45 MW Waste Heat Recovery System (WHRS) and an additional 15 MW WHRB have been key milestones. These systems capture excess heat from production processes, converting it into energy and reducing carbon footprints. The company has also introduced advanced burner technology to lower NOx emissions and optimise energy consumption. Currently, WCL achieves less than 47 KWh/tonne of clinker and an SEC of less than 685 Kcal/kg of clinker—benchmarks among the best in the cement industry. These achievements reflect the company’s dedication to lowering environmental footprints through technological enhancements.

What challenges do you face in implementing CCUS in the cement manufacturing process, and how do you address them sustainably?
For India, CCUS is still an emerging concept. While some European companies have successfully implemented CCUS, the associated costs in the Indian context are currently prohibitive, approximately 2.5 to 3 times the cost of a cement plant. This makes large-scale implementation challenging. Some of the key challenges are:

  • High project costs: The cost of implementing CCUS is 2-3 times higher than the cost of a cement plant.
  • Energy-intensive operations: Operating CCUS facilities can double energy consumption, increasing operational expenses.
  • Space requirements: CCUS infrastructure demands substantial space.
  • Storage accessibility: Many Indian plants are located inland, far from oceans, complicating carbon storage options.

WCL is advocating for further research to optimise the utilisation of captured carbon, which could lower project and operational costs over time. The company is committed to exploring CCUS feasibility for its future projects and collaborating with technology providers to address these challenges sustainably.

How do you see CCUS contributing to achieving net-zero emissions?
CCUS is indispensable for achieving Net Zero emissions in the cement industry. Even with 100 per cent electrification of kilns and renewable energy utilisation, CO2 emissions from limestone calcination—a key raw material—remain unavoidable. The cement industry is a major contributor to GHG emissions, making CCUS critical for sustainability.
Integrating CCUS into plant operations ensures significant reductions in carbon emissions, supporting the industry’s Net Zero goals. This transformative technology will also play a vital role in combating climate change and aligning with global sustainability standards.

Any specific investments or partnerships made in CCUS research or deployment to support sustainable practices?
WCL has implemented several innovative technologies and process optimisations to minimise GHG emissions. Key initiatives include:

  • Installation of WHRS and maximising renewable energy usage.
  • Exploring the production of lower clinker cements such as LC3 and PLC, alongside increasing the share of blended cement like PPC.
  • Engaging with consultants and technology providers to develop a comprehensive Net Zero and ESG roadmap.

Any success stories or pilot projects involving CCUS that have significantly impacted your sustainability goals?
We have invested in renewable energy projects to significantly reduce its carbon footprint. Key examples include:

  • Solar power installations at Nimbahera Integrated Plant and Jhajjar Grinding Unit.
  • 15 MW windmills at Pratapgarh.
  • Renewable Power Purchase Agreements for grinding units in Aligarh, Uttar Pradesh, and Dhule, Maharashtra, replacing 50 to 60 per cent of energy demand from the grid and reducing GHG emissions.

The company is actively exploring CCUS installation for upcoming projects, assessing its viability in the Indian context.

Beyond CCUS, what other sustainable practices or innovations is your company implementing to reduce its environmental footprint?
WCL’s sustainability initiatives include:

Energy efficiency: Installing Variable Frequency Drives (VFDs), optimising differential pressures across bag filters, and enhancing kiln operations.

  • 3R principles: Emphasising reduce, reuse and recycle to optimise resource utilisation and waste management.
    Waste co-processing: Utilising over 50,000 tonnes of RDF/plastic waste and ensuring proper disposal of hazardous waste like used oil and lead-acid batteries.
  • Alternative raw materials: Substituting natural resources with industrial by-products like red mud, chemical gypsum and ETP sludge.
  • Plastic waste management: Increasing recycled content in PP bags and achieving Extended Producer Responsibility (EPR) targets.
  • Carbon sequestration: Planting over 250,000 trees, sequestering 5,000-10,000 tonnes of CO2 annually.
  • Water conservation: Operating as a water-positive organisation, with a focus on rainwater harvesting and groundwater recharge.

How do you balance the cost challenges of CCUS with your commitment to sustainable development?
WCL prioritises environmental stewardship alongside financial sustainability. While CCUS implementation involves high costs, WCL sees opportunities in mechanisms such as Carbon Border Adjustment Mechanism (CBAM), carbon trading, and Renewable Energy Certificate (REC) trading. These avenues provide financial incentives to offset the initial investment in green technologies.

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Concrete

Balancing Demand and Sustainability

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ICR discusses India’s rapid advances in renewable energy, on track to exceed its 2030 targets, even as the rising energy demands challenge complete reliance on sustainable sources.

The cement industry, a cornerstone of infrastructure development, has long been associated with high emissions, particularly of CO2. This sector alone is responsible for approximately 8 per cent of global carbon dioxide emissions, primarily due to the energy-intensive processes of clinker production and calcination. Beyond carbon emissions, cement production also generates particulates, nitrogen oxides (NOx), sulphur oxides (SOx), and other pollutants, contributing to environmental degradation and health risks. With the global push towards sustainable practices and carbon neutrality, addressing emissions in the cement industry has become imperative.
According to Climate Change Performance Index, India ranks 7 in 2024. India receives a high ranking in the GHG Emissions and Energy Use categories, but a medium in Climate Policy and Renewable Energy, as in the previous year. While India is the world’s most populous country, it has relatively low per capita emissions. Data shows that in the per capita GHG category, the country is on track to meet a benchmark of well below 2°C.
India’s situation underscores the complexity of transitioning to sustainable energy systems in the face of rising and fluctuating energy needs. International support is crucial for India to access advanced technologies, financial resources, and best practices that can accelerate its transition to a sustainable energy future. Our analysis shows that with current policies, India will overachieve its conditional NDC targets of achieving 50 per cent non-fossil capacity by 2030, so it could set stronger targets. India has ambitious renewable energy plans as outlined in the National Electricity Plan 2023 (NEP2023) aiming for a share of installed capacity of 57 per cent and 66 per cent in 2026-27 and 2031-32, respectively. Share of renewable energy capacity in India reached 44 per cent, ranked fourth in the world in renewable energy capacity installations in 2023, after China, the US and Germany. The NEP2023 is reflected in the lower bound of our current policy and action pathway.
India has seen a steady increase in renewable energy deployment, including both utility-scale and rooftop solar, leading to the share of coal capacity dropping below 50 per cent for the first time. However, this increase in renewable energy capacity is barely able to keep up with the surging demand. As a result, the electricity generation share of renewable energy, including large hydro, remains at around 18 per cent, showing no improvement since last year. Investment in renewable energy projects in India are projected to increase by over 83 per cent to around USD 16.5 bn in 2024, with fossil fuel companies also diversifying their investments into the renewable sector. Despite this, India has not committed to phasing out coal power or fossil gas.
The National Electricity Plan indicated a temporary halt in coal capacity addition, but current under-construction capacity exceeds the threshold stated in these plans. While new gas power projects have been abandoned, the utilisation of existing gas power plants has increased to meet energy demand driven by severe heat stress.

Understanding Emissions in Cement Production
Primary Sources of Emissions: Cement production emissions stem mainly from three sources: calcination, fuel combustion, and electricity use. During calcination, limestone is heated to produce clinker, releasing CO2 as a by-product. This process alone accounts for roughly 60 per cent of emissions in cement manufacturing. The remaining emissions result from burning fossil fuels in kilns to achieve the high temperatures needed for calcination and from electricity consumption across production stages.
Raju Ramchandran, SVP Manufacturing (Cluster Head – Central), Nuvoco Vistas, says, “We consistently track air emissions from fuel combustion in our cement manufacturing and power generation operations. The burning of fossil fuels releases pollutants such as Oxides of Sulphur (SOx), Oxides of Nitrogen (NOx), and Particulate Matter (PM), which require stringent monitoring.”
“We ensure compliance with regulatory standards by using the Continuous Emission Monitoring System (CEMS) to monitor these emissions. For the FY 23-24, both our stack and fugitive emissions have stayed within the permissible limits set by Pollution Control Boards. Moreover, our ongoing monitoring of fugitive emissions ensures that we meet the prerequisite air quality standards,” he adds.
In addition to CO2, the cement industry releases various pollutants that pose risks to air quality and public health. These include particulate matter, NOx, and SOx, which can lead to respiratory and cardiovascular issues, acid rain, and ecosystem imbalances.
Governments worldwide are setting increasingly stringent regulations to curb industrial emissions. Standards such as the EU Emissions Trading System and India’s National Action Plan on Climate Change encourage cement manufacturers to adopt cleaner technologies. Many countries now impose limits on NOx, SOx and particulate emissions, with the aim of minimising the industry’s environmental impact.

Challenges in Reducing Emissions
High carbon intensity of cement production: Cement’s high carbon intensity largely stems from the chemical reactions involved in transforming limestone into clinker, making emissions difficult to reduce without altering core processes. Additionally, achieving the necessary kiln temperatures requires significant energy, often derived from coal or natural gas.
Operational limitations: Altering the traditional cement production process can compromise the quality and durability of the end product. Adapting existing production lines for lower emissions involves extensive R&D and technical trials to ensure the finished cement meets industry standards.
Financial constraints: The cost of implementing green technology is high, creating economic challenges, particularly for smaller cement manufacturers. Equipment upgrades, energy-efficient kilns, and carbon capture facilities require considerable investment, which many companies find difficult to justify without strong financial incentives.
Balancing market demands and environmental goals: With global infrastructure demands rising, the cement industry faces pressure to meet growing production needs while simultaneously working to reduce emissions. Balancing these competing demands requires innovation, efficient resource management, and support from stakeholders.

Technological Innovations for Emission Reduction
Alternative fuels and energy sources: One of the most effective ways to reduce emissions is by replacing fossil fuels with alternatives like waste-derived fuels, biomass, or biofuels. Some manufacturers are incorporating solar and wind energy to power auxiliary processes, further reducing reliance on traditional energy sources.
Sudhir Pathak, Head- Central Design & Engg (CDE), QA, Green Hydrogen, Hero Future Energies, says, “The cement industry is one of the largest consumers of grid power (Scope 2) and also a guzzler of in-process fossil CO2 (Scopem1) including process-based CO2 through limekilns. Decarbonisation can be achieved only up to 50 per cent to 60 per cent through plain hybrid solar and wind. However, for achieving balance 40 per cent, storage is essential, be it chemical or mechanical. Today, HFE is ready to provide such bespoke storage solutions as is evident through several complex RTC tenders that we have won in the last 6-8 months floated by agencies like SECI, NTPC and SJVN. These include tenders for FDRE projects, peak power, load following, etc. Further, regarding green hydrogen and its derivatives, we are ready to apply these for decarbonising industrial heating and mobility.”
Carbon Capture and Storage (CCS): CCS technology captures emissions at the source, storing CO2 to prevent it from entering the atmosphere. Recent advancements in CCS technology make it a viable option for large-scale cement plants, although high costs and infrastructure requirements remain obstacles to widespread adoption.
Clinker Substitution: Reducing clinker content is a promising method for emission reduction, achieved by using supplementary cementitious materials (SCMs) such as fly ash, slag, and calcined clay. These materials not only reduce CO2 emissions but also enhance the durability and performance of cement. SCMs are gradually becoming industry-standard components, especially in eco-friendly and green cement products.
Rajesh Kumar Nayma, Assistant General Manager – Environment, Wonder Cement, says, “The use of AFR plays a critical role in our strategy to reduce the environmental footprint of cement production. By substituting traditional fossil fuels with waste-derived alternatives like biomass, refuse-derived fuel (RDF) and industrial by-products, we significantly lower CO2 emissions and reduce the demand for natural resources. The utilisation of supplementary cementitious materials (SCMs), such as fly ash, helps in reducing clinker consumption, which is a major source of carbon emissions in cement production. This not only decreases our reliance on energy-intensive processes but also promotes waste recycling and resource efficiency. AFR adoption is an integral part of our commitment to the circular economy, ensuring that we minimise waste and optimise the use of materials throughout the production cycle, ultimately contributing to a more sustainable and eco-friendly cement industry.”
“WCL is exploring transitioning from fossil fuels to cleaner alternatives like biofuels or hydrogen or RDF/plastic waste/other hazardous waste. Till date, 5 per cent TSR has been achieved, while the intent is to achieve more than 20 per cent TSR. WCL is utilising the hazardous and other waste as an alternative fuel or raw material. We have used more than 3 lakh metric tonne of hydrogen waste and other waste in FY-2023-24,” he adds.
Improving energy efficiency is critical for emissions reduction. Technologies like high-efficiency kilns, heat recovery systems, and process optimisation techniques are helping manufacturers achieve more output with less energy. These measures reduce the carbon footprint while lowering operational costs.

The Role of SCMs
SCMs serve as partial replacements for clinker, providing a dual benefit of reduced carbon emissions and improved product resilience. The use of materials like fly ash and slag also helps mitigate industrial waste, contributing to a circular economy. Fly ash, slag, and silica fume are among the most widely used SCMs. Each has unique properties that contribute to cement’s strength, workability, and durability. By incorporating SCMs, manufacturers can produce cement with a lower environmental footprint without compromising quality.
While SCMs are effective, several obstacles hinder their widespread adoption. Supply chain constraints, material variability, and lack of technical standards are challenges that manufacturers face. Additionally, geographic limitations impact access to certain SCMs, creating disparities in their usage across regions.

Policy and Industry Collaboration
Policies play a critical role in driving green transitions within the cement industry. Carbon credits, tax incentives, and funding for R&D are some measures governments have introduced to support emission reduction. India’s Perform, Achieve, and Trade (PAT) scheme is an example of a policy incentivising industrial energy efficiency.
Collaborations between government entities, private corporations, and research institutions foster innovation and accelerate the adoption of sustainable practices. Partnerships can also help address funding gaps, allowing companies to explore new technologies without bearing the full financial burden.
International frameworks such as the Paris Agreement and industry-led efforts like the Global Cement and Concrete Association (GCCA) are setting targets for sustainable cement production. These initiatives encourage the sector to adopt environmentally friendly practices and set a roadmap toward achieving net-zero emissions.

Towards a Net-Zero Future
Reaching net-zero emissions is an ambitious but necessary goal for the cement industry. Realistic targets, set with interim milestones, allow companies to gradually transition to greener processes while maintaining production efficiency. Continued investment in R&D is crucial for discovering new methods of emission reduction. Emerging technologies such as carbon-negative materials, alternative binders, and low-carbon clinkers hold promise for the future, potentially transforming cement production into a more sustainable process.
Increasingly, consumers and investors are prioritising sustainability, placing pressure on companies to reduce their environmental impact. This shift in consumer sentiment is driving the cement industry to adopt green practices and focus on transparency in emissions reporting.

Conclusion
The journey toward reducing environmental impact in the cement industry is complex and multifaceted, requiring a combination of innovation, policy support, and industry collaboration. By adopting alternative fuels, implementing carbon capture technology, integrating SCMs, and improving energy efficiency, the industry can take significant strides in minimising its carbon footprint. Achieving sustainability in cement production is essential not only for the industry’s future but also for the planet’s well-being. Together, industry players, policymakers, and consumers can support the transition to a net-zero future, ensuring that cement remains a vital yet sustainable component of global infrastructure.

– Kanika Mathur

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Concrete

Red River Formation in Kiln Operations

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Dr SB Hegde, Professor, Jain College of Engineering and Technology, Hubli, and Visiting Professor, Pennsylvania State University, USA, helps us understand the red river formation in cement kiln operations, its causes, impacts and mitigation strategies.

Red river formation in cement kilns, where molten clinker flows uncontrollably in the cooler, is a costly problem for cement plants. The phenomenon not only affects clinker quality but also leads to significant operational disruptions, increased energy consumption and accelerated wear on kiln refractory bricks. Understanding the factors that cause red river formation and implementing strategies to prevent it are critical to maintaining operational efficiency and clinker quality.
This paper explores the causes of red river formation, the operational impacts it has on kiln performance, and the various mitigation strategies that cement plants can adopt. Additionally, safety considerations associated with the prevention and handling of red river formation are discussed, with practical insights from case studies of successful plant interventions in India and globally.

Causes of red river formation
Red river formation is primarily caused by improper kiln operations, including fluctuating kiln temperatures, oxygen levels, and cooler inefficiency. The following parameters are essential contributors:
Kiln temperature: Inconsistent temperature control in the kiln’s burning zone, often exceeding 1500°C, creates an imbalance between the solid and molten clinker phases, leading to red river formation. Maintaining temperatures within a more stable range of 1470-1490°C ensures that the clinker remains solid as it moves into the cooler.
Oxygen levels and CO concentrations: Oxygen levels above 2.5 per cent increase the risk of over-combustion, while elevated CO levels above 0.3 per cent indicate incomplete combustion, both contributing to excessive clinker melting. Optimising oxygen levels to 1.8-2.0 per cent minimises the risk.
Raw mix composition: The raw mix plays a vital role in clinker formation. A high liquid phase due to improper ratios of silica, alumina, and iron oxide can lead to excessive melting. Controlling the silica modulus (SM: 2.3-2.7) and alumina modulus (AM: 1.3-1.8) ensures a more stable clinker and reduces the risk of red river formation. If the raw mix is improperly proportioned, red river formation becomes more likely due to high fluxing compounds that melt at lower temperatures.
Kiln speed and torque: Kiln speeds that fluctuate below 3.4 rpm can cause material buildup, while kiln torque exceeding 50-60 per cent indicates stress that can lead to clinker instability.
Cooler efficiency: Inefficiencies in the clinker cooler, with efficiency levels below 78 per cent, can exacerbate red river formation. Clinker that is not cooled properly will remain molten for longer, allowing it to flow uncontrollably. Coolers should maintain exit temperatures between 180-200°C to prevent red river incidents.
Impact on clinker quality and kiln performance
The occurrence of red river has numerous negative impacts on both clinker quality and kiln performance:
Clinker quality: Red river formation results in poor clinker grindability, higher variability in free lime content and inconsistent cement properties. Poor clinker reactivity reduces both early and late strength development in the final cement product.
Increased heat consumption: Red river typically increases specific heat consumption by 3-5 per cent, resulting in higher fuel usage. These inefficiencies can significantly affect the plant’s cost structure, driving up operational expenses.
Refractory damage: The molten clinker accelerates the wear of refractory bricks in the kiln, especially in the burning zone and cooler transition areas. Brick life can decrease by 25-30 per cent, leading to more frequent replacements and higher maintenance costs.
Equipment and instrumentation damage: The uncontrolled molten flow of clinker during red river incidents can damage cooler plates, kiln discharge systems, and even temperature sensors and thermocouples, leading to costly repairs and prolonged downtime.

Mitigation strategies
Mitigating red river formation requires a multi-faceted approach combining operational optimisation, automation and staff training:
Kiln temperature control: Maintaining stable burning zone temperatures in the 1470-1490°C range is key to preventing excessive melting of clinker. Advanced temperature monitoring systems can help regulate temperature fluctuations.
Cooler efficiency optimisation: To ensure proper cooling, cooler efficiency must be maintained at 78-80 per cent, with clinker exit temperatures not exceeding 200°C. Real-time airflow adjustments in grate coolers improve cooling performance, solidifying the clinker at the appropriate stage.
Automation and data analytics: Advanced Process Control (APC) systems using data analytics can monitor critical kiln parameters—such as temperature, oxygen levels, and torque—in real-time, allowing for predictive maintenance and early intervention when red river signs appear. This technology has been implemented successfully in leading plants globally to prevent red river formation.

Indian case studies
Case Study 1: Cement Plant in South India – Optimisation of Kiln Parameters
A cement plant in South India faced recurrent red river issues due to high kiln temperatures and low cooler efficiency. After comprehensive process audits, the plant optimised its kiln temperature to 1480°C, reduced oxygen levels to 1.9 per cent, and upgraded its cooler to an efficiency of 80 per cent. These changes reduced red river incidents by 85 per cent, saving the plant Rs 10 million in energy costs annually and improving clinker quality by
15 per cent.

Case Study 2: Cement Plant in North India – Cooler Upgrade and Automation
A northern India plant increased cooler efficiency from 70 per cent to 78 per cent by installing an advanced grate cooler. This reduced clinker exit temperatures to 190°C, preventing red river formation. Automation systems provided real-time adjustments, decreasing the frequency of incidents by 75 per cent and saving `12 million annually.

Global Case Studies
Case Study 1: European Plant – Automation Success
A German cement plant, experiencing red river issues due to fluctuating oxygen levels, installed an advanced data-driven automation system. The system stabilised oxygen at 1.9 per cent and maintained kiln temperature at 1,475-1,485°C, reducing red river by 90 per cent. Clinker quality improved by 10 per cent, with a reduction in specific heat consumption by 4 per cent.

Case study 2: US Plant – Operator Training and Process Optimisation
A US cement plant reduced red river occurrences by 70 per cent through kiln speed optimisation (3.8 rpm) and comprehensive operator training. Improved monitoring of kiln torque and cooler exit temperatures led to higher cooler efficiency (75 per cent) and an annual savings of $2 million.

Safety Aspects
Safety is a paramount concern in red river incidents. When molten clinker flows uncontrollably, it poses a significant risk to personnel working near the kiln and cooler areas.

To mitigate these risks:

  • Clearance zones: Kiln and cooler areas should have strict clearance zones for personnel when red river incidents are detected.
  • Protective gear and training: Personnel should be equipped with proper protective equipment (PPEs) and trained to handle emergencies involving molten clinker. Emergency shutdown procedures should be well-documented and rehearsed.
  • Automation and early warning systems: Automation can provide early warning systems that alert operators to potential red river formation before it becomes critical, ensuring safe intervention.

Conclusion
Red river formation remains a major operational challenge for cement plants, but it can be effectively mitigated through proper kiln temperature control, cooler efficiency optimisation and the use of advanced automation systems.
The case studies highlight the importance of process improvements and staff training in reducing red river occurrences, improving clinker quality, and lowering operational costs. Additionally, safety
measures must be prioritised to protect personnel from the risks posed by molten clinker. By incorporating these strategies, cement plants can ensure consistent kiln performance and enhanced operational efficiency.

References
1. Duda, W. H. (1985). Cement Data Book. International Process Engineering in the Cement Industry. Bauverlag GmbH.
2. Javed, I., & Sobolev, K. (2020). “Use of Automation in Modern Cement Plants.” Cement and Concrete Research, 130, 105967.
3. Tamilselvan, P., & Kumar, R. (2023). “Optimisation of Kiln and Cooler Systems in Indian Cement Plants.” Indian Cement Review, 34(7), 42-48.
4. Martin, L. (2019). “Case Studies of Red River Mitigation in European Cement Plants.” International Journal of Cement Production, 12(2), 63-78.
5. Schorr, H. (2021). “Advanced Process Control in Cement Manufacturing.” Cement International, 19(3), 30-37.
6. Singh, V. K., & Gupta, A. (2022). “Impact of Raw Mix on Clinker Formation and Kiln Operations.” Global Cement Magazine, 14(4), 22-29.

About the author: Dr SB Hegde brings over thirty years of leadership experience in the cement industry in India and internationally. He has published over 198 research papers and holds six patents, with four more filed in the USA in 2023. His advisory roles extend to multinational cement companies globally and a governmental Think Tank, contributing to research and policy. Recognised for his contributions, he received the ‘Global Visionary Award’ in 2020 from the Gujarat Chambers of Commerce and Industry.

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