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Cement industry will take a ready-mix concrete route

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– Anil Banchhor,MD and CEO of RDC Concrete

Can you briefly introduce RDC concrete to our readers? Please tell us about your pan India presence and capacity as of March 31, 2021.

RDC concrete is the pioneer of the commercial ready-mix concrete industry in India. The first commercial plant was established in 1993 in Mumbai as a JV between RDC of Singapore and UNITEC developers. The earlier name of the company was Unitech Prefab. In the year 2000, RDC Singapore took over 100 per cent of equity and the name of the company changed to RDC Concrete India. At that time, RDC concrete of Singapore was also having a presence in several other countries like Malaysia, Vietnam, Indonesia, Hongkong, etc.

In the year 2005, Truenorth a PE fund (India value fund) took over RDC, but the name RDC concrete continued as the brand name was strongly associated with quality and service. In the portfolio of Truenorth PE fund, there are about 25 companies from various sectors like cement, aggregates, banking, home financing, technology, logistics, FMCG, pharma, services, etc. RDC concrete has 51 plants across India with a capacity of 25 lac m3 concrete per year.

The year 2020 was critical for every industry. To what extent your business got affected due to the pandemic? How was the recovery?

In our RMC industry, work from home is not possible as all actions happen at factories for production, deliveries, and pumping at the site. When the lockdown was imposed, we kept two batchers within the plant and their job was to keep the equipment in good condition and take dry runs at regular intervals so that we are fully prepared once the lockdown is lifted. We kept a check on the functioning of the plants through video calls. This way, we kept the powder dry and started firing on all cylinders, when lockdown ended.

We did a 20 per cent lower volume in the last financial year as compared to FY 2020, but we were successful in exceeding the EBITDA of the previous year, despite Covid-19. Q1 was a complete washout after the lockdown was imposed after 23rd March. But we were the first to restart plants in Mumbai on 13th April and then all plants opened gradually. Q2 was like breakeven. Q3 and Q4 were really good, and we could produce 17.5 lac m3 concrete. Profitability wise we improved over previous year numbers due to reduction in fixed costs. Our truck hiring model was changed from fixed rental per month to variable model on a km run basis. Also, we were successful in reducing costs such as power, water, wastages, etc on the plant operations level.

What about cash flow?

Cash flow was a matter of concern and we increased focus on collections. Many clients were not paying dues, but we kept on paying our vendors because they have been associated with us for a long time. Slowly all customers started paying in parts, which we kept rotating back in our business.

As a leader how do you keep the morale of the employees high during the pandemic time?

Morale is infectious. If the morale of a leader is high, then the morale of the whole team remains high. The morale of all our business heads was high and this is in our culture. They just do not give instructions, but they lead from the front. When the concrete was required for a government project in Mumbai, our plants were started immediately. Our Mumbai Business head was present at the plant for the smooth delivery of concrete. I remember that this happened on 13th April in the Sakinaka area of Mumbai. This kind of leadership action boosted the morale of the team.

We made an Emergency Response Team called ERT consisting of two people from each city and two people from the head office. The job of ERT was to call every employee at regular intervals for improved communication and to check the well-being of their family members. They provided immediate assistance in case of any hospitalisation.

We also introduced daily health declarations by all employees, including family members, through google form about their health status like temperature, cough, oxygen level to quickly identify issues and to provide immediate support.

We purchased O2 concentrators for each location and kept them in readiness for any emergency requirements. Plants were sanitised regularly. We followed all protocols related to wearing a mask, hand washing, and social distancing. We had taken the Apollo home care package and all employees with families were covered in it. Apollo doctors were calling the patients two times a day through web calls and checking all vital parameters. Medicines, oximeters, thermometers were delivered to their homes regularly. Regular video calls by psychologists and dieticians were arranged for them. As a result, the number of people infected in our company was very low.

We have also given 14 days special leave provision for those who got infected from Corona, apart from 42 days of Earned leave. To my knowledge, no other company from our industry has given such additional leave provision. We did not sack any staff during Covid-19, and no salary deduction was done. We enhanced the life insurance coverage at the beginning of the first Covid impact. At the lower level pay scale, it worked out to be 10 years of CTC and that is quite impactful.

Tell us about your preparedness for the second wave or maybe the subsequent third wave?

Everything was looking good in December-January, and then suddenly the second wave hit India, which was more infectious. Since many SOPs were in place during the first wave of Covid, we simply rolled it out again. We were ready but were only constrained by the government’s orders. Otherwise, our people are geared to work in any wave now. Our Emergency response Team ??RT??strong> swung into action and started enquiring with all staff members to check their well-being and assist, if needed. Our group company Truenoth is having about 25 companies and a network of all HR heads who started regular web meetings for supporting each other. We continued with the Apollo home package.

We also made a list of plasma donors within the company and shared it with other sister companies for any urgent requirements. Additional Covid leave of 14 days is already in place. This was our preparedness for the second wave.

What is the current situation? How many of your plants are functional?

Kerala is fully locked down and no plant is running there. Gurgaon is fully closed too. Few of the cities are having a weekend lockdown and we cannot operate on weekends. Our volume has come down to 40-50 percent of the normal.

Many companies increased their technology penetration during Covid. How has RDC leveraged technology to enhance efficiency and effectiveness?

We already have good technology penetration in RDC. All our plants are online including all incoming material systems and outgoing supplies. Further enhancement was made on the technology during the Covid period, and we were able to reduce the paper consumption significantly.

Earlier, all incoming trucks with raw materials were coming with paper challans and we converted them to e challan with QR code. Hence all points of contact were eliminated, and this helped us in reducing the spread of infection. This led to a drastic reduction in paper consumption. All outgoing delivery challans were converted to e challan for all customers except a few who still wanted paper challans compulsorily. In our industry, people are not very tech-savvy, and many customers still want everything in hard copies. Whereas we do not want any hard copy from any of our vendors.

Our IT penetration has reached all employees. Training is online, the production system is online, logistics is online, all documents are on the server. All employee claim forms and documents were converted to a digital platform including all approvals. Papers have been dispensed with and everything moves electronically by DMS. Another major technology penetration is an e-learning tool called E Diksha. We took advantage of the available time and opportunity to train all staff in plant operations, logistics, quality controls, materials management, and general management programmes through web training.

We also developed interesting business simulation games, which were done completely in-house. These simulation games are for all business managers to sharpen their decision-making skills in a real-life situation. We are the only company in our industry to have such business simulation games. We run business games for three to four quarters and results are declared after every quarter. Feedback is also given, after every quarter, as to what went well and what needs improvement. This has helped significantly in improving leadership skills.

On the technology front, we developed a manless weighbridge based on QR code and RFID. All weighbridges are fitted with three cameras and two RFID readers. The supplier gets material receipt notification with a pdf copy by mail along with six photographs.

We introduced Petro cards issued by oil companies and gave them to transporters. As soon as the diesel is dispensed from petrol pumps through petro card, automatic GRN entry reflects in our ERP. In the plant, we also developed an automated diesel dispensing system with ERP integration. Whatever diesel is drawn, the automatic diesel issue gets recorded in ERP.

All HR-related items have been shifted to zing HR, like KPI, performance review, compensation, leave approvals, salary slips, form 16, mediclaim, etc. Silo stock measurement has also been developed with automation and is being implemented after a successful pilot in three to four plants.

Do you think it is a fallout of the Covid wave or otherwise also you would have persuaded the same this time?

Due to Covid-19, we could get time since all the plants were closed and we could spend some energy on it. The other reason is we always wanted to go paperless. Paper is one cause for spreading infections. We are moving towards paperless RDC.

How do you foresee business in the year 2021-22? Especially taking into account the spread of the 2nd wave of coronavirus and maybe 3rd a little later?

In April, volumes were down by 20 per cent. In May, the business came down by 40 per cent of the normal months. It seems that this will continue in June also. I expect things will start moving upward from July before it reaches normalcy in October. By this time, more vaccinations will happen and infrastructure in hospitals would also improve to a great extent to tackle the third wave. We have tied up with Apollo hospitals for the vaccination of all our staff and their family members. Preparedness of all agencies would be better during the third wave in all cities, and I feel that the impact would be much lower. I am confident that all businesses will bounce back after November, and we will do better than last year.

Give us some idea about the safety aspects of your operations? How do you engage employees in making safety a matter of daily routine? How coronavirus impacted the safety at your plants and offices?

In RDC Concrete, safety is taken as a priority item. Safety Toolbox talk meetings are happening at plants on a daily and weekly basis. Compliance on safety initiatives, hazard identification, and rectification are reviewed on a weekly and monthly basis. We keep on improving safety through various new safety initiatives. We also ensure that the best practice of one plant is replicated in other plants quickly.

KPI of all employees is having 20 per cent weightage on safety. Even the staff at the head office must go to the plant every quarter to complete a safety audit of the plant. We have a quarterly interplant competition on Safety and productivity called ??artaj??and safety has 38 per cent weightage in the competition.

The winning plant is awarded with a rolling trophy with one lac cash award for staff engagement with certificates for all plant staff. Runner up plant gets Rs 50,000 for party or people engagement activities. RDC concrete is the only RMC company which is having such interplant completion on safety and productivity.

The safety officer visits each plant in a year and conducts audits. During this pandemic, video audits are being done. Apart from this, we have internal and external statutory auditors, and they also check safety compliance in the plant and bring out issues if there are any. Safety related to Coronavirus is the most important aspect now. The well-being of employees is the foremost priority at present and not the business. If employees are taken care of, the business will bounce back later. We are taking all precautions for the protection of staff and their family members during this challenging time.

We have tied up with Apollo for vaccination of all staff including their family members. We made vaccination compulsory for each staff member. About 95% of staff including their family members are already vaccinated as of the date.

How do you manage the shortage of sand in making concrete?

River sand is being used mostly in the north and eastern part of India, otherwise in most of the states use of river sand for concrete making is banned. All grades of concrete including high grades up to M120 and high-performance concrete are being produced with crushed sand or manufactured sand. Even concrete structures in coastal zones which are exposed to the extreme weather conditions and durability is foremost important, are being made with crushed sand. In fact, we should not be using river sand at all. Customer acceptance in some locations is a challenge and not the availability of river sand. Slowly all locations are seeing improved customer acceptability.

Normally the river sand is rounded whereas crushed has angular particles which give a kind of harshness to concrete. How is this problem addressed?

With proper proportioning of the ingredients like 10 mm, 20 mm, sand, and the finer material fly ash and cement together should give a cohesive mix of concrete. Let us not forget about the admixtures. Today we get good and consistent quality of admixtures, which helps in producing self-compacting concrete even with crushed sand, which can be used for very thin sections and is easily pourable. All this put together takes care of the angularity of manufactured sand. The manufactured sand produced using a vertical shaft impact (VSI) crusher is much better in shape and angularity. While sourcing the material we make sure that the supplier uses a VSI crusher.

What are the disadvantages of being a non-cement player in concrete business? I agree that being a non-cement RMC player is a challenge but there are opportunities also, which makes us more efficient, more productive, and agile, leading to better service to the customers. Let me admit that the cement and concrete together are a very good combination. However, it does not mean that a non-cement player cannot work. In fact, he can turn it into an opportunity to be a more efficient player, which we are. In fact, all cement players must have concrete as a channel. We had seen in practical terms that in combination, cement EBITDA gets doubled or more than double, if the cement company is having RMC as a channel.

In the last few years, there has been a boom in the RMC industry and the cement consumption through the RMC route is increasing every day. RMC penetration in tier 2 and tier 3 cities are increasing. Headache of manual mixing is a challenge due to the shortage of workers and wastages. Architects are also recommending the use of RMC for better quality and durability of the concrete structure.

Which are the highest-selling grades of concrete for metro work and for real estate? What are the challenges associated with supplying these grades?

For metro jobs, generally, M40 and M30 grades are being used. For the precast segment higher grades like M50 are also being used for early stripping of formwork. In commercial or residential projects, general grades are M40 and M30. For columns, M60 is being used. For high-rise skyscraper projects, we have supplied even M95 grades also in Mumbai and other metro cities.

Quality control on raw materials and the skill set of people are very important for high grades and there is no challenge for us in this regard as our in-house team is quite competent and motivated. We have done many metro captive jobs in many cities and at present, five metro captive jobs are running in different cities. We are also supplying a lot of concrete from commercial plants as well to metro projects. Managing transit mixer truck movement is the only challenge during peak traffic in cities.

What do you see 5 years, 10 years down the line about the ready mixed concrete business? What kind of sophistication do you think can come in?

The RMC industry will keep growing at about 18 to 20 per cent CAGR and more and more cement will move through the ready-mix concrete route. Trade sales will keep on coming down over a period. Because of increased RMC penetration, more cement needs to be delivered in bulk. Cement companies need to create bulk terminals near cities for quicker delivery. Such cement companies would be at an advantage. More penetration will come in tier 2 and 3 cities as the high-rise building construction will increase in such cities apart from metros. Individual house constructions are getting reduced. Builders and developers are launching new projects in tier 2, 3 cities. A lot of commercial complexes, malls are being built. All these constructions are using batching plants with bulk supplies.

At present, there are about 2,500 commercial RMC plants and about 7,000 captive plants of contractors and construction companies. This number will keep on growing and within the next 8-10 years, this number is expected to double. Automation will increase in RMC and more mechanised construction will take place leading to higher productivity per person.

Many cities are having a lot of traffic restrictions for truck movement. So, the time available to service to customers is getting reduced. This will lead to a higher capacity of plants and a higher capacity of transit mixers. At present we use trucks with a capacity of 6-7 cum of concrete that will go to 8-10 cum of concrete. More and more use of concrete pumps will take place. Hence bigger size plants are required in outskirts of the city.

Anil Banchhor is Managing Director and CEO of RDC Concrete. He is a professionally qualified civil engineer. Initially, started from construction and then moved to cement marketing and to ready mixed business. He was associated with ACC, rose to the position of CEO- RMX, and then moved on to RDC concrete.

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Concrete

Cement Industry Backs Co-Processing to Tackle Global Waste

Industry bodies recently urged policy support for cement co-processing as waste solution

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Leading industry bodies, including the Global Cement and Concrete Association (GCCA), European Composites Industry Association, International Solid Waste Association – Africa, Mission Possible Partnership and the Global Waste-to-Energy Research and Technology Council, have issued a joint statement highlighting the cement industry’s potential role in addressing the growing global challenge of non-recyclable and non-reusable waste. The organisations have called for stronger policy support to unlock the full potential of cement industry co-processing as a safe, effective and sustainable waste management solution.
Co-processing enables both energy recovery and material recycling by using suitable waste to replace fossil fuels in cement kilns, while simultaneously recycling residual ash into the cement itself. This integrated approach delivers a zero-waste solution, reduces landfill dependence and complements conventional recycling by addressing waste streams that cannot be recycled or are contaminated.
Already recognised across regions including Europe, India, Latin America and North America, co-processing operates under strict regulatory and technical frameworks to ensure high standards of safety, emissions control and transparency.
Commenting on the initiative, Thomas Guillot, Chief Executive of the GCCA, said co-processing offers a circular, community-friendly waste solution but requires effective regulatory frameworks and supportive public policy to scale further. He noted that while some cement kilns already substitute over 90 per cent of their fuel with waste, many regions still lack established practices.
The joint statement urges governments and institutions to formally recognise co-processing within waste policy frameworks, support waste collection and pre-treatment, streamline permitting, count recycled material towards national recycling targets, and provide fiscal incentives that reflect environmental benefits. It also calls for stronger public–private partnerships and international knowledge sharing.
With global waste generation estimated at over 11 billion tonnes annually and uncontrolled municipal waste projected to rise sharply by 2050, the signatories believe co-processing represents a practical and scalable response. With appropriate policy backing, it can help divert waste from landfills, reduce fossil fuel use in cement manufacturing and transform waste into a valuable societal resource.    

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Concrete

Industry Bodies Call for Wider Use of Cement Co-Processing

Joint statement seeks policy support for sustainable waste management

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Leading industry organisations have called for stronger policy support to accelerate the adoption of cement industry co-processing as a sustainable solution for managing non-recyclable and non-reusable waste. In a joint statement, bodies including the Global Cement and Concrete Association, European Composites Industry Association, International Solid Waste Association – Africa, Mission Possible Partnership and the Global Waste-to-Energy Research and Technology Council highlighted the role co-processing can play in addressing the growing global waste challenge.
Co-processing enables the use of waste as an alternative to fossil fuels in cement kilns, while residual ash is incorporated into cementitious materials, resulting in a zero-waste process. The approach supports both energy recovery and material recycling, complements conventional recycling systems and reduces reliance on landfill infrastructure. It is primarily applied to waste streams that are contaminated or unsuitable for recycling.
The organisations noted that co-processing is already recognised in regions such as Europe, India, Latin America and North America, operating under regulated frameworks to ensure safety, emissions control and transparency. However, adoption remains uneven globally, with some plants achieving over 90 per cent fuel substitution while others lack enabling policies.
The statement urged governments and institutions to formally recognise co-processing in waste management frameworks, streamline environmental permitting, incentivise waste collection and pre-treatment, account for recycled material content in national targets, and support public-private partnerships. The call comes amid rising global waste volumes, which are estimated at over 11 billion tonnes annually, with unmanaged waste contributing to greenhouse gas emissions, pollution and health risks.

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Concrete

Why Cement Needs CCUS

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Cement’s deep decarbonisation cannot be achieved through efficiency and fuel switching alone, making CCUS essential to address unavoidable process emissions from calcination. ICR explores if with the right mix of policy support, shared infrastructure, and phased scale-up from pilots to clusters, CCUS can enable India’s cement industry to align growth with its net-zero ambitions.

Cement underpins modern development—from housing and transport to renewable energy infrastructure—but it is also one of the world’s most carbon-intensive materials, with global production of around 4 billion tonnes per year accounting for 7 to 8 per cent of global CO2 emissions, according to the GCCA. What makes cement uniquely hard to abate is that 60 to 65 per cent of its emissions arise from limestone calcination, a chemical process that releases CO2 irrespective of the energy source used; the IPCC Sixth Assessment Report (AR6) therefore classifies cement as a hard-to-abate sector, noting that even fully renewable-powered kilns would continue to emit significant process emissions. While the industry has achieved substantial reductions over the past two decades through energy efficiency, alternative fuels and clinker substitution using fly ash, slag, and calcined clays, studies including the IEA Net Zero Roadmap and GCCA decarbonisation pathways show these levers can deliver only 50 to 60 per cent emissions reduction before reaching technical and material limits, leaving Carbon Capture, Utilisation and Storage (CCUS) as the only scalable and durable option to address remaining calcination emissions—an intervention the IPCC estimates will deliver nearly two-thirds of cumulative cement-sector emission reductions globally by mid-century, making CCUS a central pillar of any credible net-zero cement pathway.

Process emissions vs energy emissions
Cement’s carbon footprint is distinct from many other industries because it stems from two sources: energy emissions and process emissions. Energy emissions arise from burning fuels to heat kilns to around 1,450°C and account for roughly 35 to 40 per cent of total cement CO2 emissions, according to the International Energy Agency (IEA). These can be progressively reduced through efficiency improvements, alternative fuels such as biomass and RDF, and electrification supported by renewable power. Over the past two decades, such measures have delivered measurable gains, with global average thermal energy intensity in cement production falling by nearly 20 per cent since 2000, as reported by the IEA and GCCA.
The larger and more intractable challenge lies in process emissions, which make up approximately 60 per cent to 65 per cent of cement’s total CO2 output. These emissions are released during calcination, when limestone (CaCO3) is converted into lime (CaO), inherently emitting CO2 regardless of fuel choice or energy efficiency—a reality underscored by the IPCC Sixth Assessment Report (AR6). Even aggressive clinker substitution using fly ash, slag, or calcined clays is constrained by material availability and performance requirements, typically delivering 20 to 40 per cent emissions reduction at best, as outlined in the GCCA–TERI India Cement Roadmap and IEA Net Zero Scenario. This structural split explains why cement is classified as a hard-to-abate sector and why incremental improvements alone are insufficient; as energy emissions decline, process emissions will dominate, making Carbon Capture, Utilisation and Storage (CCUS) a critical intervention to intercept residual CO2 and keep the sector’s net-zero ambitions within reach.

Where CCUS stands today
Globally, CCUS in cement is moving from concept to early industrial reality, led by Europe and North America, with the IEA noting that cement accounts for nearly 40 per cent of planned CCUS projects in heavy industry, reflecting limited alternatives for deep decarbonisation; a flagship example is Heidelberg Materials’ Brevik CCS project in Norway, commissioned in 2025, designed to capture about 400,000 tonnes of CO2 annually—nearly half the plant’s emissions—with permanent offshore storage via the Northern Lights infrastructure (Reuters, Heidelberg Materials), alongside progress at projects in the UK, Belgium, and the US such as Padeswood, Lixhe (LEILAC), and Ste. Genevieve, all enabled by strong policy support, public funding, and shared transport-and-storage infrastructure.
These experiences show that CCUS scales fastest when policy support, infrastructure availability, and risk-sharing mechanisms align, with Europe bridging the viability gap through EU ETS allowances, Innovation Fund grants, and CO2 hubs despite capture costs remaining high at US$ 80-150 per tonne of CO2 (IEA, GCCA); India, by contrast, is at an early readiness stage but gaining momentum through five cement-sector CCU testbeds launched by the Department of Science and Technology (DST) under academia–industry public–private partnerships involving IITs and producers such as JSW Cement, Dalmia Cement, and JK Cement, targeting 1-2 tonnes of CO2 per day to validate performance under Indian conditions (ETInfra, DST), with the GCCA–TERI India Roadmap identifying the current phase as a foundation-building decade essential for achieving net-zero by 2070.
Amit Banka, Founder and CEO, WeNaturalists, says “Carbon literacy means more than understanding that CO2 harms the climate. It means cement professionals grasping why their specific plant’s emissions profile matters, how different CCUS technologies trade off between energy consumption and capture rates, where utilisation opportunities align with their operational reality, and what governance frameworks ensure verified, permanent carbon sequestration. Cement manufacturing contributes approximately 8 per cent of global carbon emissions. Addressing this requires professionals who understand CCUS deeply enough to make capital decisions, troubleshoot implementation challenges, and convince boards to invest substantial capital.”

Technology pathways for cement
Cement CCUS encompasses a range of technologies, from conventional post-combustion solvent-based systems to process-integrated solutions that directly target calcination, each with different energy requirements, retrofit complexity, and cost profiles. The most mature option remains amine-based post-combustion capture, already deployed at industrial scale and favoured for early cement projects because it can be retrofitted to existing flue-gas streams; however, capture costs typically range from US$ 60-120 per tonne of CO2, depending on CO2 concentration, plant layout, and energy integration.
Lovish Ahuja, Chief Sustainability Officer, Dalmia Cement (Bharat), says, “CCUS in Indian cement can be viewed through two complementary lenses. If technological innovation, enabling policies, and societal acceptance fail to translate ambition into action, CCUS risks becoming a significant and unavoidable compliance cost for hard-to-abate sectors such as cement, steel, and aluminium. However, if global commitments under the Paris Agreement and national targets—most notably India’s Net Zero 2070 pledge—are implemented at scale through sustained policy and industry action, CCUS shifts from a future liability to a strategic opportunity. In that scenario, it becomes a platform for technological leadership, long-term competitiveness, and systemic decarbonisation rather than merely a regulatory burden.”
“Accelerating CCUS adoption cannot hinge on a single policy lever; it demands a coordinated ecosystem approach. This includes mission-mode governance, alignment across ministries, and a mix of enabling instruments such as viability gap funding, concessional and ESG-linked finance, tax incentives, and support for R&D, infrastructure, and access to geological storage. Importantly, while cement is largely a regional commodity with limited exportability due to its low value-to-weight ratio, CCUS innovation itself can become a globally competitive export. By developing, piloting, and scaling cost-effective CCUS solutions domestically, India can not only decarbonise its own cement industry but also position itself as a supplier of affordable CCUS technologies and services to cement markets worldwide,” he adds.
Process-centric approaches seek to reduce the energy penalty associated with solvent regeneration by altering where and how CO2 is separated. Technologies such as LEILAC/Calix, which uses indirect calcination to produce a high-purity CO2 stream, are scaling toward a ~100,000 tCO2 per year demonstrator (LEILAC-2) following successful pilots, while calcium looping leverages limestone chemistry to achieve theoretical capture efficiencies above 90 per cent, albeit still at pilot and demonstration stages requiring careful integration. Other emerging routes—including oxy-fuel combustion, membrane separation, solid sorbents, and cryogenic or hybrid systems—offer varying trade-offs between purity, energy use, and retrofit complexity; taken together, recent studies suggest that no single technology fits all plants, making a multi-technology, site-specific approach the most realistic pathway for scaling CCUS across the cement sector.
Yash Agarwal, Co-Founder, Carbonetics Carbon Capture, says, “We are fully focused on CCUS, and for us, a running plant is a profitable plant. What we have done is created digital twins that allow operators to simulate and resolve specific problems in record time. In a conventional setup, when an issue arises, plants often have to shut down operations and bring in expert consultants. What we offer instead is on-the-fly consulting. As soon as a problem is detected, the system automatically provides a set of potential solutions that can be tested on a running plant. This approach ensures that plant shutdowns are avoided and production is not impacted.”

The economics of CCUS
Carbon Capture, Utilisation and Storage (CCUS) remains one of the toughest economic hurdles in cement decarbonisation, with the IEA estimating capture costs of US$ 80-150 per tonne of CO2, and full-system costs raising cement production by US$ 30-60 per tonne, potentially increasing prices by 20 to 40 per cent without policy support—an untenable burden for a low-margin, price-sensitive industry like India’s.
Global experience shows CCUS advances beyond pilots only when the viability gap is bridged through strong policy mechanisms such as EU ETS allowances, Innovation Fund grants, and carbon Contracts for Difference (CfDs), yet even in Europe few projects have reached final investment decision (GCCA); India’s lack of a dedicated CCUS financing framework leaves projects reliant on R&D grants and balance sheets, reinforcing the IEA Net Zero Roadmap conclusion that carbon markets, green public procurement, and viability gap funding are essential to spread costs across producers, policymakers, and end users and prevent CCUS from remaining confined to demonstrations well into the 2030s.

Utilisation or storage
Carbon utilisation pathways are often the first entry point for CCUS in cement because they offer near-term revenue potential and lower infrastructure complexity. The International Energy Agency (IEA) estimates that current utilisation routes—such as concrete curing, mineralisation into aggregates, precipitated calcium carbonate (PCC), and limited chemical conversion—can realistically absorb only 5 per cent to 10 per cent of captured CO2 at a typical cement plant. In India, utilisation is particularly attractive for early pilots as it avoids the immediate need for pipelines, injection wells, and long-term liability frameworks. Accordingly, Department of Science and Technology (DST)–supported cement CCU testbeds are already demonstrating mineralisation and CO2-cured concrete applications at 1–2 tonnes of CO2 per day, validating performance, durability, and operability under Indian conditions.
However, utilisation faces hard limits of scale and permanence. India’s cement sector emits over 200 million tonnes of CO2 annually (GCCA), far exceeding the absorptive capacity of domestic utilisation markets, while many pathways—especially fuels and chemicals—are energy-intensive and dependent on costly renewable power and green hydrogen. The IPCC Sixth Assessment Report (AR6) cautions that most CCU routes do not guarantee permanent storage unless CO2 is mineralised or locked into long-lived materials, making geological storage indispensable for deep decarbonisation. India has credible storage potential in deep saline aquifers, depleted oil and gas fields, and basalt formations such as the Deccan Traps (NITI Aayog, IEA), and hub-based models—where multiple plants share transport and storage infrastructure—can reduce costs and improve bankability, as seen in Norway’s Northern Lights project. The pragmatic pathway for India is therefore a dual-track approach: utilise CO2 where it is economical and store it where permanence and scale are unavoidable, enabling early learning while building the backbone for net-zero cement.

Policy, infrastructure and clusters
Scaling CCUS in the cement sector hinges on policy certainty, shared infrastructure, and coordinated cluster development, rather than isolated plant-level action. The IEA notes that over 70 per cent of advanced industrial CCUS projects globally rely on strong government intervention—through carbon pricing, capital grants, tax credits, and long-term offtake guarantees—with Europe’s EU ETS, Innovation Fund, and carbon Contracts for Difference (CfDs) proving decisive in advancing projects like Brevik CCS. In contrast, India lacks a dedicated CCUS policy framework, rendering capture costs of USD 80–150 per tonne of CO2 economically prohibitive without state support (IEA, GCCA), a gap the GCCA–TERI India Cement Roadmap highlights can be bridged through carbon markets, viability gap funding, and green public procurement.
Milan R Trivedi, Vice President, Shree Digvijay Cement, says, “CCUS represents both an unavoidable near-term compliance cost and a long-term strategic opportunity for Indian cement producers. While current capture costs of US$ 100-150 per tonne of CO2 strain margins and necessitate upfront retrofit investments driven by emerging mandates and NDCs, effective policy support—particularly a robust, long-term carbon pricing mechanism with tradable credits under frameworks like India’s Carbon Credit Trading Scheme (CCTS)—can de-risk capital deployment and convert CCUS into a competitive advantage. With such enablers in place, CCUS can unlock 10 per cent to 20 per cent green price premiums, strengthen ESG positioning, and allow Indian cement to compete in global low-carbon markets under regimes such as the EU CBAM, North America’s buy-clean policies, and Middle Eastern green procurement, transforming compliance into export-led leadership.”
Equally critical is cluster-based CO2 transport and storage infrastructure, which can reduce unit costs by 30 to 50 per cent compared to standalone projects (IEA, Clean Energy Ministerial); recognising this, the DST has launched five CCU testbeds under academia–industry public–private partnerships, while NITI Aayog works toward a national CCUS mission focused on hubs and regional planning. Global precedents—from Norway’s Northern Lights to the UK’s HyNet and East Coast clusters—demonstrate that CCUS scales fastest when governments plan infrastructure at a regional level, making cluster-led development, backed by early public investment, the decisive enabler for India to move CCUS from isolated pilots to a scalable industrial solution.
Paul Baruya, Director of Strategy and Sustainability, FutureCoal, says, “Cement is a foundational material with a fundamental climate challenge: process emissions that cannot be eliminated through clean energy alone. The IPCC is clear that in the absence of a near-term replacement of Portland cement chemistry, CCS is essential to address the majority of clinker-related emissions. With global cement production at around 4 gigatonnes (Gt) and still growing, cement decarbonisation is not a niche undertaking, it is a large-scale industrial transition.”

From pilots to practice
Moving CCUS in cement from pilots to practice requires a sequenced roadmap aligning technology maturity, infrastructure development, and policy support: the IEA estimates that achieving net zero will require CCUS to scale from less than 1 Mt of CO2 captured today to over 1.2 Gt annually by 2050, while the GCCA Net Zero Roadmap projects CCUS contributing 30 per cent to 40 per cent of total cement-sector emissions reductions by mid-century, alongside efficiency, alternative fuels, and clinker substitution.
MM Rathi, Joint President – Power Plants, Shree Cement, says, “The Indian cement sector is currently at a pilot to early demonstration stage of CCUS readiness. A few companies have initiated small-scale pilots focused on capturing CO2 from kiln flue gases and exploring utilisation routes such as mineralisation and concrete curing. CCUS has not yet reached commercial integration due to high capture costs (US$ 80-150 per tonne of CO2), lack of transport and storage infrastructure, limited access to storage sites, and absence of long-term policy incentives. While Europe and North America have begun early commercial deployment, large-scale CCUS adoption in India is more realistically expected post-2035, subject to enabling infrastructure and policy frameworks.”
Early pilots—such as India’s DST-backed CCU testbeds and Europe’s first commercial-scale plants—serve as learning platforms to validate integration, costs, and operational reliability, but large-scale deployment will depend on cluster-based scale-up, as emphasised by the IPCC AR6, which highlights the need for early CO2 transport and storage planning to avoid long-term emissions lock-in. For India, the GCCA–TERI India Roadmap identifies CCUS as indispensable for achieving net-zero by 2070, following a pragmatic pathway: pilot today to build confidence, cluster in the 2030s to reduce costs, and institutionalise CCUS by mid-century so that low-carbon cement becomes the default, not a niche, in the country’s infrastructure growth.

Conclusion
Cement will remain indispensable to India’s development, but its long-term viability hinges on addressing its hardest emissions challenge—process CO2 from calcination—which efficiency gains, alternative fuels, and clinker substitution alone cannot eliminate; global evidence from the IPCC, IEA, and GCCA confirms that Carbon Capture, Utilisation and Storage (CCUS) is the only scalable pathway capable of delivering the depth of reduction required for net zero. With early commercial projects emerging in Europe and structured pilots underway in India, CCUS has moved beyond theory into a decisive decade where learning, localisation, and integration will shape outcomes; however, success will depend less on technology availability and more on collective execution, including coordinated policy frameworks, shared transport and storage infrastructure, robust carbon markets, and carbon-literate capabilities.
For India, a deliberate transition from pilots to practice—anchored in cluster-based deployment, supported by public–private partnerships, and aligned with national development and climate goals—can transform CCUS from a high-cost intervention into a mainstream industrial solution, enabling the cement sector to keep building the nation while sharply reducing its climate footprint.

– Kanika Mathur

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