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Budget 2023

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Union Budget 2023, which brought a mixed package for industrial India, has spelled out a positive narrative for the cement sector. ICR brings you a detailed report.

If one were to summarise the Union Budget 2023 in bulleted points, the following keywords would be highlighted:

  1. Pre-election year budget
  2. Inclusive development
  3. Infrastructure and investment
  4. Youth power
  5. Skill development
  6. Green growth for sustainable development
  7. Boosting start-up growth

And amongst these the most important ones for the cement sector are infrastructure and investment. With the government raising capital expenditure by 33 per cent to Rs 10 lakh crore, it is a clear signal for steel and cement consumption to skyrocket in the next fiscal. As soon as the honourable Finance Minister Nirmala Sitharaman announced a 33 percent increase in capital investment, shares of steel and cement companies took a hike. As the budget allocates a capital expenditure of 3.3 per cent of GDP, it is almost three times the outlay in 2019-20. The Union Budget 2023-24 has definitely infused the market with optimism.
Similarly, there has been an outlay of Rs 2.4 lakh crore for railways and 50 new airports and 100 critical transport infrastructure projects for last and first-mile connectivity for sectors such as coal, steel, food grain, fertiliser and ports.
And most importantly, the PM Awaas Yojana (PMAY) has received an enhanced 66 per cent to over Rs 79,000 crore. With its focus on ‘housing for all,’ the plan for affordable housing will give the real estate sector a much-needed impetus, thereby boosting the demand for cement, too.
Speaking about the budget, Vishal Kanodia, Managing Director, Kanodia Group, said, “The budget 2023-24 presented by Hon’ble Finance Minister Nirmla Sitarman under the able guidance of Hon’ble Prime Minister Shri Narenda Modi is balance and optimistic to attain ‘Sabka Saath Sabka Vikas’ – inclusive development of the country to place the country developed country segment by 2047. Creating urban infrastructure in tier 2 and 3 cities via establishment of Urban Infrastructure Development Fund, Jal Jeevan Mission, Pradhan Mantri Awas Yojana, North East Special Development Scheme. Establishment of 157 Nos Nursing College, Eklavya Model Residential Schools, etc.”
“Outlay on above projects definitely boost the demand of cement and construction materials and create more job opportunities. In addition to the above, the budget also provides tax relief to individual taxpayers and the corporate world, which will also provide major stimulants to demand generation and saving. Overall the budget is very good and it will be a positive stimulant for the construction sector, which was under pressure in the last 2-3 years due to Covid -19 pandemic.”
Sandeep Runwal, President, NAREDCO Maharashtra, said, “Pradhan Mantri Awaas Yojana (PMAY) is a lofty initiative by the central government, aiming to bring affordable housing for all. The staggering 66 per cent increase in funding for the scheme to Rs 79,000 crore for the next fiscal year is expected to address more than 55 per cent of the estimated deficit in funds for projects under the scheme, providing a huge impetus in providing housing to those in need.”
Srini Srinivasan, MD, Kotak Investment Advisors, commented, “We were expecting a more populous budget with taxes going up, but that did not happen. The cap of Rs 10 crore on the capital gains deduction will impact the luxury housing segment, mainly in Mumbai. There will be bunching of sales till 31st March 2023. Additional tax on REITS was a dampener but overall the budget on housing was a good one.”
Rajiv Sabharwal, MD & CEO, Tata Capital, lauded the Finance Minister’s efforts to balance both the short and long-term growth measures. He maintained that though the budget has not proposed any new proposal for the real estate industry, it has not dented the ongoing pace of growth, as the real sector had caught a good momentum due to the government’s push for the past two years.

Power Play
Power has been under the spotlight in this budget. As the thermal power sector suffered due to coal shortage and challenges pertaining to working capital, it had an adverse impact on the cement sector. The demand for power continues to be robust and is likely to sustain even as the economy recovers.
However, with regards to the cement sector, it is renewable energy that is on the radar. India’s goal of net-zero carbon emissions by 2070 was reiterated in the budget presentation and pathways for green growth were envisaged. One of them being the National Green Hydrogen Mission, with an outlay of Rs 19,700 crore, with which India aspires to accomplish annual green hydrogen production of 5 MMT by 2030. This will have a direct impact on installation of more renewable energy and reduce the carbon footprint for the hard-to-abate sectors like cement, steel, shipping etc.
“Union Budget 2023 focuses on continuing the momentum towards a sustainable India. By earmarking green growth as one of the 7 key priorities, the government has reaffirmed its commitment to decarbonisation and creation of green jobs. The allocation of Rs. 35,000 crore for priority capital investment towards energy transition will help catalyse our Net Zero journey. Viability Gap Funding for battery storage projects, significant outlay for grid expansion for renewable energy and the green credit programme to incentivise sustainable behaviour are all very welcome and timely steps that will accelerate clean energy adoption,” said Rahul Munjal, Chairman and Managing Director, Hero Future Energies.
Overall, Budget 2023-24 brings positive news for the cement sector. It is now for the industry leaders to make the most of it and implement strategies to maximise the growth and fulfil the ever-increasing demand.

Economy & Market

TSR Will Define Which Cement Companies Win India’s Net-Zero Race

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Jignesh Kundaria, Director and CEO, Fornnax Technology

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.

According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.

Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The Regulatory Push Is Real

The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.

Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian Waste Is a Different Engineering Problem

Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.

The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a Made-in-India Answer

At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.

Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.

Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The Investment Case Is Now

The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.

The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.

The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.

The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About The Author

Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

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Concrete

WCA Welcomes SiloConnect as associate corporate member

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The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

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Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

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TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

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