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Taking Stock of the PAT Thresholds

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The Perform, Achieve and Trade (PAT) launched by the Bureau of Energy Efficiency incentivises energy efficiency and consumption, resulting in economic benefits in the long term.

The Indian cement industry is involved in production of several types of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc. The Perform, Achieve and Trade (PAT) launched by the Bureau of Energy Efficiency under the Ministry of Power, Government of India, offers an opportunity to the industry to improve its energy efficiency and reduce energy consumption resulting in long term economic benefits in terms of reduced fuel expenditure with trading.

The key goal of the PAT scheme under NMEEE, is to mandate specific energy efficiency improvements for the most energy intensive industries, and further incentivise them to achieve better energy efficiency improvements that are superior to their specified SEC improvement targets. To facilitate this, the scheme provides the option to industries that achieve superior savings to be rewarded with energy saving certificates for the excess savings, and to trade the additional certified energy savings certificates with other designated consumers who can utilise these certificates to comply with their reduction targets. The Energy Saving Certificates (ESCerts) thus issued will be tradable on special trading platforms to be created in the power exchanges.

The Bureau of Energy Efficiency focused on development of normalisation factors so as to normalise the variation of operating parameters in the target year with respect to baseline operating parameters.

Let us look at the baseline energy consumption parameters taken for consideration before the normalisation thresholds were ascertained: It would be worthwhile to see how the industry has progressed against this baseline scenario for Thermal Energy Consumption and Electrical Energy Consumption as identified by the Bureau of Energy Efficiency.

The CII Energy Efficiency Audit conducted over several cement manufacturing units in 2018, provides us with the state of energy efficiency improvements achieved by the Indian industry stalwarts. While the names of the best individual performers have been kept undisclosed, we can at least see the top performing assets and the corresponding efficiencies they have achieved. The CII Report Energy Benchmarking (2019) has given the following data of the top best performing Cement Kilns in terms of Energy Consumption (CII Tables 4.1, 4.2, 4.3 and 4.3 – page 30).

The data shows improvement in the energy efficiency, both in the electrical as well as in the thermal area. But this shows the top ten performers doing better than the benchmark values set in 2007- 10. However, we do not know what the average data for the industry is. CII has taken up many energy efficiency improvement projects for implementation with the industry and many of them have been implemented. The gap identified for Electrical efficiency is as follows:

Waste Heat Recovery (WHR) systems on the other hand has given major savings in energy and remains the major focus area for adoption to reduce the electrical energy and related emission. The economics of putting up a captive power generating unit versus putting up a WHR system shows unique advantages for cost reduction. The capital investment for waste heat recovery systems is high at Rs 8 Cr /MW going by the current costs, whereas the CPP units can come at Rs 4.5 cr/MW; however, the project IRR would be very different as the cost of generation would be as low as Rs 0.40 per unit for the former while Rs 4.5 per unit for the latter, which given the current trajectory of fossil fuel prices is already under severe stress of upward correction. It is only the initial cost that continues to act as a deterrent for putting up a WHR unit.

The Indian cement industry must act responsibly and move quickly to put in investments that could raise the WHR installed capacity to cross the minimum threshold of 25 per cent of electricity consumption. That will still be far from the 20 billion KWhr of total electricity consumption by the industry.

The other area of concern is the price trajectory of fossil fuels, which would continue to move northwards. The WHR systems are one simplest way of insulating the industry from the vagaries of future price increases.

Thus, waste heat recovery systems could be the natural hedge to fossil fuel price increases for a substantial portion of the electrical consumption. As matters stand, most WHR systems would be the highest IRR projects that the industry as an ensemble can think of today.

Concrete

NDMC Rolls Out Intensive Sanitation Drive Across Lutyens Delhi

Municipal body intensifies cleaning and monitoring across the capital

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The New Delhi Municipal Council has launched an intensive sanitation drive across Lutyens’ Delhi, aiming to raise cleanliness standards in the capital’s central precincts. The programme will combine enhanced manual sweeping with mechanised cleaning and systematic waste removal to cover parks, heritage precincts and prominent thoroughfares. Authorities described the initiative as a sustained effort to improve public hygiene and reduce environmental hazards while maintaining the area’s civic image.

Operational teams have been instructed to prioritise drain clearing and litter hotspots, with special attention to markets and transit nodes that attract heavy footfall. Coordination with city utilities and waste processing units will be stepped up to ensure timely collection and disposal, and supervisory rounds will monitor adherence to cleaning schedules. Officials also intend to use data-driven planning to deploy resources efficiently and to identify recurring problem areas.

The council plans to engage resident welfare associations and business stakeholders to foster community participation in maintaining cleanliness and to support behavioural change campaigns. Public communication will be amplified through notices and outreach to encourage responsible waste handling and to inform residents about collection timings and segregation norms. Enforcement measures for littering and unauthorised dumping will be reinforced as part of a broader strategy to deter violations and sustain cleanliness gains.

The move reflects a focus on urban sanitation that officials link to public health priorities and to the city administration’s commitment to maintaining civic amenities. Monitoring mechanisms will include regular reporting and inspections to review outcomes and to recalibrate operations where necessary, according to municipal sources. The council emphasised that continued community cooperation will be essential for the drive to deliver lasting improvements in the appearance and hygiene of the capital’s core areas.

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UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

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UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

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Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

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Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.

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