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The Framework of Sustainable Mining

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Reducing the environmental impact of mining is a key driver for the Indian cement fraternity today, with a holistic approach and well-planned strategies to ensure lesser carbon emissions.

Mining, the process of extracting from the bed of the earth, is a key process in the making of cement. The raw materials for making cement such as limestone, clay, bauxite and other minerals are sourced from the bed of the earth through the process of mining. The source of energy for cement plants, coal, is also drawn from its mines.
India’s limestone deposits can be found throughout the country. In India, total limestone reserves or resources of all types and grades are estimated to be 203,224 million tonnes. Karnataka has the most limestone reserves, with about 28 per cent, followed by Andhra Pradesh and Rajasthan, each with about 11 per cent limestone reserves. Gujarat, Meghalaya, and Telangana have 10 per cent, 9 per cent, and 8 per cent of the population, respectively. In terms of annual extraction volume, limestone ranks first among non-fuel solid mineral deposits in India.
The mining industry in India contributes significantly to the economy, amounting to around 10 to 11 per cent to the industrial sector. This industry took a modern turn post the economic reforms of 1991, and the 1993 Mining Policy further helped its growth. India has a rich reserve of mineral and non-mineral ores distributed in five mineral belts across the length and breadth of the country. The geographical distribution of mineral belts are the North Eastern Peninsular Belt, Central Belt, Southern Belt, South Western Belt and North Western Belt. The index of mineral production of the mining and quarrying sector for November 2021 stood at 111.9, which was 5 per cent higher than the level in November 2020.
Mining in India falls under the legal and constitutional framework. Governed by the Indian Bureau of Mines, its primary mission is to promote systematic and scientific development of mineral resources of the country (both onshore and offshore), through regulatory inspections of the mines, approval of mining plans and environment management plans to ensure minimal adverse impact on the environment.
Mining operations are regulated under the Mines and Minerals (Development and Regulation) [MMDR] Act of 1957. The State Governments, as owners of minerals, grant mineral concessions and collect royalty, dead rent and fees as per the provisions of MMDR Act. These revenues are held in the Consolidated Fund of State Government until the state legislature approves their use through budgetary processes. The MMDR Act was enacted to provide for the regulation of mines and development of minerals under the control of the Union. The Act has been amended in 1972, 1986, 1994 and 1999 in keeping with changes in the policy on mineral development. In 2015, the act was amended with the intention of removing discretion and introducing more transparency in the grant of mineral concessions. The amendments now made to the MMDR Act, 1957 provide that mineral concessions will be granted only on the basis of bidding at an auction, for the prospecting stage or mining stage on a case to case basis.
According to Make in India – Mining Achievements, the grade conformity of coal has jumped to 69 per cent in 2022-23 (till Nov’ 22) as against 51 per cent in 2017-18. The National Mineral Exploration Trust (NMET) has approved 187 exploration projects with a total cost of Rs 895.72 crore up to 31st December 2019. Among this total 69 projects have already been completed and 118 projects are ongoing. The Government of India has handed over 52 Geological Survey of India (GSI) approved mine blocks to 15 State Governments. An E-portal of an accreditation scheme for Mineral exploration has been launched to increase transparency and ease of doing business.

The impact of mining activities include harm not
only to water and land flora and fauna but also to the
ecosystem in and around the mining area.

IMPACT OF MINING ON THE ENVIRONMENT
The Indian cement industry is one amongst the largest in the world, the production is high and so is the demand for raw material and energy. Regardless of the scale of mining, the extraction of rocks and minerals has an impact on the environment at various stages of mining, processing, and utilisation.
The severity of environmental issues is determined by the extent of mining and the mining site’s ecological sensitivity. Denudation of forests, water depletion, pollution of water, soil, and air, loss of natural flora and fauna, reduction in biodiversity, erosion of soil, instability of soil and rock masses, changes in the landscape and degradation of agricultural land are just a few of the obvious environmental consequences of limestone mining. Both terrestrial and aquatic ecosystems are impacted, with long-term consequences that may extend beyond the mining area’s boundaries.
Lowering of water tables, habitat destruction, waste encroachment into agricultural land, building destruction due to cracks, pollution of rivers, loss of biodiversity, destruction of crops, unclean rainwater harvested from roofs, and health issues such as inhalation of dust resulting in respiratory tract infections are just a few of the consequences.
Manish Toshniwal, Vice President and Mines Head, JK Cement, says, “The availability of natural resources is limited and mining leads to depletion of natural resources. It is quite important that on the one hand we meet the needs of the present, and on the other we conserve natural resources to meet future needs.”
“Mining can become more sustainable by developing and integrating practices that ensure cost effective mining, reduce the environmental impacts of mining operations, improve socio economic development of people, and comply with statutory obligations. Massive plantations have been taken up for conservation of flora and fauna in the mines. So far, the plantation drive in mines involves planting 4,07,294 saplings covering an area of 158.07 hectares. The development of bio diversity park, to create safe and secure habitat for local flora and fauna to improve the ecological footprint of the mine, spreads over an area of 50.0 hectares. The park will be developed in three phases with a total of 50,000 saplings and is targeted to be complete by FY 2024-25” he adds.
Mining and metals operations, local communities and others all depend on clean air, water, land and energy. Securing fair access to these shared resources increasingly depends on demonstrating responsible stewardship and recognising the needs of others. Failure to effectively manage the potential adverse impacts of mining on these shared resources can result in the deterioration of environmental resources and have adverse consequences for human health.

The correlation between cement production and coal consumption is disturbing and has deep impact on the environment


MINING AND THE CEMENT INDUSTRY
Cement manufacturers mine and process raw materials and put them through a chemical reaction process to create cement. They need to understand the chemical composition of the raw materials so that the reaction in their process takes place correctly and they make good, high-quality cement that will eventually be used to make concrete by contractors and ‘ready-mix’ companies. Mining is an integral part of the cement making process. It is the first step in obtaining the key raw material – limestone – from quarries to make the final product. Limestone is obtained from the deposits or rock by blasting or mechanical excavation depending on the hardness of the rock. It is then crushed into smaller chunks. After crushing the stone is sorted into different fractions by screening, after which it is processed further. In the grinding process, the limestone is ground to a fine powder.
Limestone is one of the key minerals used in cement making. Limestone is a sedimentary rock composed mostly of the calcium carbonate (CaCO3) and comprises about 15 per cent of the Earth’s sedimentary crust. Surface mining is the general excavation method. There are a few underground limestone mines, but most are pits on the surface. Most of the limestone is obtained from open quarries. The extraction is carried out by open cast method on both small and large scales. The small-scale extraction of limestone is done manually by individuals using minimal machinery. The limestone beds are drilled for blast holes using drilling machines, after which the rocks undergo blasting. The limestone rocks undergo manual sizing, in order to obtain rock pieces of suitable sizes for easy transportation and processing.
For cement, limestone mining takes place on a large scale by the underground mining method. The basic operations in underground mining are drilling, blasting, loading and hauling, scaling and roof bolting. Drilling equipment includes horizontal drills and down hole track drills. This equipment results in much smaller blast holes and a lower volume of rock produced with each blast. Other equipment required in the underground mine includes powder loaders, which are used to blow ammonium nitrate–fuel oil mixtures into the blast holes. Scaling rigs, which are used to remove loose rocks from the ribs and roof of the mine, and roof-bolting equipment may also be required in an underground mine.
“Hydraulic excavators, wheel loaders, backhoe loaders, bulldozers, dump trucks, tippers, graders, rock breakers, vibratory compactors, cranes, fork lifts, dozers, off-highway dumpers (20T to 240T), drills, scrapers, motor graders, rope shovels, etc. are just a few examples of the machinery that falls under the category of mining equipment deployed for limestone mining. They carry out a range of tasks, including ground preparation, excavation, material haulage, dumping/laying in a specific way, material handling, haul road building, etc. Shovels, surface miners, dumpers and drills are the primary production tools used in opencast mining for hauling, drilling, and excavating,” says Pukhraj Sethiya, Chief Operating Office, ReVal Consulting.
“While a wide variety of mining equipment with various capacities is being used in India, the most popular fleet is made up of hydraulic excavators with 3 to 10 Cu.m bucket capacities and dumpers with 35 to 100 T capacities. Surface miners are also frequently used in the mining of soft and thin seams in softer strata like coal and limestone (in a few locations, such as western Gujarat), which eliminates the need for blasting in coal and ultimately contributes to lowering greenhouse gas emissions,” he adds.
Cement making is an energy intensive process and coal provides for 90 per cent of the energy consumed by cement plants around the world. India is one of the largest producers and consumers of coal, with the cement sector dominating its consumption. The Coal India Limited (CIL) is the state-owned miner for the country and accounts for over 80 per cent of domestic coal production. CIL coal production target for India is set to 1 billion tonnes by FY2020. However, the cement industry gets about 5 per cent of coal from within the country, and the rest of its coal demand is met through imports. The combustion process results in the emission of carbon dioxide, which is a prominent reason for air pollution.
There are four types of coal available in India, namely, peat, lignite, bituminous coal and anthracite coal. The most consumed amongst these are lignite and bituminous. The cement industry mainly uses non-coking bituminous coal and lignite in small quantities in plants in Tamil Nadu and Rajasthan. Specifically, the coal used by the cement companies is of grade G4, G5, G6, G7, G8 and G9.
The Ministry of Coal has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues. Under the administrative control of the Ministry, these key functions are exercised through the Public Sector Undertakings, namely, Coal India Ltd. and its subsidiaries and Neyveli Lignite corporation India Limited (NLCIL). Other than Coal India Ltd and Neyveli Lignite Corporation India Ltd, the Ministry of Coal also has a joint venture with the Government of Telangana called Singareni Collieries Company Limited. The Government of Telangana holds 51 per cent equity and Government of India holds 49 per cent equity.
The industry is constantly looking for alternative solutions to replace coal and reduce the carbon emission by substituting it with other energy giving materials. This is a conscious effort taken by all large players in the cement industry.
“The demand for coal in the Asian markets has increased in the last two years. Due to this increase in demand, prices have increased dramatically and look on the upper side in the next two quarters. Indonesian miners are trying to cope with the demand but due to logistics constraints and harsh weather conditions, they are facing issues to manage the supply. The demand for Indonesian coal has increased in Europe as well,” says Vishal Uberoi, Director, KTP Exports, Indonesia.

The Indian Bureau of Mines estimates that over 170
million tonnes of solid wastes related to mining is
generated in India every year

TECHNOLOGY IN MINING
Technology has played a large role in making mining as a process more efficient, productive and sustainable. These technologies have heavily contributed to the growth and progression of the mining operations, leading to more significant mineral commodities and overall productivity.

Waste management and rehabilitation is the key to ensure
that mining moves into sustainability terrain real fast.


Artificial intelligence (AI) solutions in mining use smart data and machine learning to improve mining production, efficiency, and safety. These technologies allow companies to generate data in half the time than what has been previously seen in the field, enabling companies to improve decision-making with faster and more accurate data-driven insights. As a result, the AI technologies’ machine-learning capabilities are heavily influencing how mines make decisions for the future. By helping miners locate sites, precise position and in some cases self-driving vehicles or operating machines has made let to minimised costs, reduce environmental impact, and improved safety and reliability.
Automation in excavators and other machinery has also led to making mining a more cost effective and reduced waste process. Thus, making mining sustainable. Technologies like GPS, GIS systems, drones etc., are key to effective mining.

SUSTAINABLE MINING
Mining has its own set of pros and cons.
The planet has bestowed us with minerals and rocks that have properties to make materials that are valuable to human kind. Limestone, other minerals and coal are the key materials that are mined for the cement industry.
Various technologies and methods have been adopted by cement manufacturers and miners to make mining a sustainable process that does not harm the environment. From planting trees to harvesting water, controlling dust and rehabilitating villagers close to the mines, many efforts have been taken to safeguard the environment. Carbon emission is also another factor that is taken care of by the miners.
Anurag Bagaria, Director – Sales & Mining Head, KK Bagaria Group and Anurag Bagaria Group, says, “We incorporate sustainability into our mining process by using renewable energy sources, such as solar and wind power, to power our operations. We also use water recycling systems to reduce water consumption and minimise our environmental impact. Additionally, we use advanced technologies to reduce our carbon footprint and minimise our waste output. Finally, we strive to ensure that our operations are conducted in a responsible manner that respects the local environment and communities. Sustainable mining is an essential element – not only in recovering from the latest mining slump but also for the industry’s long-term survival”.
According to the Indian Bureau of Mines, it is estimated that well over 170 million tonnes of solid wastes related to mining are generated in India every year. This is expected to rise substantially to 300 million tonnes with the increase in production of various minerals. Due to shortages of some minerals in the natural reserves and depletion of high-grade ores, leaner grade ores are being mined which generate a large amount of waste. Adding to this, the preferred method of mining for industries is the open cast method for its high productivity, economic viability and safety aspects, which leads to large volumes of waste generation.
This rock waste generated cannot be immediately back filled due to geological constraints and has to be planned and phased out. This results in stacking of this waste externally creating a mining waste dump.
While this waste is an unavoidable damage to the land, there are many ways of rehabilitating the area where the waste is dumped. The design of the waste should accommodate progressive rehabilitation to ensure a minimum area is disturbed at any given time. This waste can also be used in alternative jobs, like construction or landfills, to put it to good use and reduce the stacking and dumping of the same.
It must be ensured that a proper drainage channel is created from the waste dump in case heavy rainfall is expected in the area. This shall prevent the nearby land from getting contaminated with the waste residues. Proper rehabilitation of tailings must be planned in order to avoid contamination of water sources around the dump area.
Rehabilitation of the mining waste dump areas should aim to establish a vegetative cover and increase rainfall infiltration. Dumps with higher salt content must be screened with overburden of the lowest salt content.
The cement industry consumes mined materials for their varied processes, and its volume has the potential to change the game for the environment. Shifting practices towards sustainable means can lead to a greener country with cleaner air. With advanced technology and better planning, this is an achievable feat. Influential players in the cement industry are taking efforts to help heal the environment and create mining processes that do more good than harm.

-Kanika Mathur

Concrete

CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech

To build capacity of 100,000 tonnes a year

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CarbonStrong has raised Rs 125 million (125 mn) to scale a low carbon cement technology and build commercial production capacity. The startup was founded in 2022 by Harsh Jain and Vikramaditya Singh and has moved from customer trials to plans for industrial supply. The company said its material replaces up to 50 per cent of cement in concrete while reducing costs and improving durability.

CarbonStrong states the product is around 30 per cent cheaper than cement and compatible with existing concrete plants, reducing the need for new equipment and operational disruption. Trials and paid pilots have been conducted in Bengaluru, Hyderabad and Chennai with demonstration projects involving ready-mix firms and precast manufacturers. Compatibility with current workflows forms a central part of the commercial strategy, aiming to ease adoption by builders and contractors.

The funding will support construction of a facility with capacity of up to 100,000 tonnes (100,000 t) a year over the next two years to supply early customers commercially. The firm is also developing materials from steel slag, copper slag and mine tailings to expand its feedstock base, while noting the technical challenge of homogenising different waste streams. Recognition by HCL ClimaForce in 2026 and by the Avaana-Startup India-NITI Aayog AIM Grand Challenge in 2025 has underscored progress.

Industry adoption remains the principal test and will require consistent material performance, supply reliability and competitive economics. CarbonStrong projects the Indian market for cement substitutes could reach Rs 250 billion (250 bn) by 2030 and has set an ambition to produce 10 million tonnes a year by 2035 (10 mn t), a target far above its near term capacity. Moving from pilots to production demands capital, manufacturing discipline and customers willing to specify the material beyond demonstrations. The recent Rs 125 million raise is intended to fund the next phase of scale and to demonstrate that industrial waste can become a dependable input for lower carbon construction.

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Protect Your Margins

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In a research-backed article, Dr SB Hegde examines why carbon-adjusted profitability and LC3 will decide the next set of winners in cement manufacturing.

The Indian cement industry has achieved world-class operational efficiency through lower specific energy consumption, high plant utilisation and a reduced average clinker factor of approximately 67.5 per cent. These traditional measures of operational excellence remain essential. However, they are no longer sufficient. Carbon now carries a measurable financial cost under India’s Carbon Credit Trading Scheme (CCTS) and under European carbon markets. Future leadership will be defined by carbon-adjusted profitability, the ability to generate strong returns while systematically lowering the carbon intensity of every ton sold.
Limestone calcined clay cement (LC3) offers a practical, scalable pathway to achieve this dual objective. By replacing up to 50 per cent of clinker with calcined clay and limestone, LC3 can reduce CO2 emissions by 30–40 per cent while delivering comparable or superior durability performance.
This article examines the technical foundations of LC3, European industrial practices, the emerging Indian carbon market and a concrete roadmap for Indian companies to embed carbon-adjusted metrics and LC3 into daily operations, incentives and commercial strategy.

Limits of traditional operational excellence
For many years, plant performance has been judged primarily by five indicators: specific heat consumption, specific power consumption, kiln and mill utilisation, clinker factor and overall equipment effectiveness. These metrics drove continuous improvement and helped the industry reduce energy use and increase the share of blended cement. Three structural changes have rendered them incomplete as sole measures of success.
First, carbon now carries a real or opportunity cost. Plants that improve volume or lower cash cost while raising or stagnating emissions intensity create a hidden liability that will surface as CCTS trading matures and as green procurement expands.
Second, lower-carbon products such as LC3 and high-performance blended cements are creating differentiated market segments. Customers in infrastructure, real estate and export-oriented construction are beginning to specify embodied-carbon limits.
Third, investors and lenders increasingly treat carbon intensity as a financial risk factor. Traditional KPIs can mask the divergence between short-term cash profit and long-term carbon-adjusted value.

What is carbon-adjusted profitability?
Carbon-adjusted profitability evaluates normal profit after explicit adjustment for carbon performance. A practical expression is:
Carbon-Adjusted EBITDA = Conventional EBITDA – Carbon Cost + Green Premium Income
Carbon cost may be an internal carbon price, the actual cost of purchasing Carbon Credit Certificates under CCTS, or the opportunity cost of high emissions relative to peers. Green premium income arises when customers pay more for verified lower-carbon cement or when the company sells surplus credits. Tracking both conventional and carbon-adjusted profit side-by-side gives management a clearer picture of value creation under evolving market rules.

Table 1. Traditional KPIs versus Carbon-Adjusted Leadership Metrics
Traditional Focus New Leadership Metric Why It Matters
Specific energy consumption Emissions intensity (kg CO2/t cement) Directly linked to future CCTS and CBAM costs
Kiln utilisation Carbon-adjusted contribution margin Reveals true value of incremental volume
Clinker factor Share of lower-carbon products sold (incl. LC3) Measures commercial success of the transition
Power cost per tonne Effective carbon cost per tonne sold Expose hidden liabilities
Absolute EBITDA Carbon-adjusted EBITDA + green premium Aligning profit with future market reality

LC3: Technical foundations and performance advantages
LC3 is a ternary blended cement that typically combines approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone and 5 per cent gypsum (the classic LC3-50 formulation). The decisive technical advantage is that clay is calcined at 700–850 °C, far below the 1,450 °C required for clinker production. This lower temperature, together with the substantial reduction in clinker content, delivers CO2 reductions of 30–40 per cent relative to ordinary Portland cement (OPC).
Chemistry is synergistic. Calcined kaolinitic clay (metakaolin) reacts with calcium hydroxide from clinker hydration and with limestone to form additional C-A-S-H gel and carboaluminate phases. These phases densify the microstructure, reduce porosity and improve durability.
Field experience shows superior resistance to chloride ingress, sulphate attack and alkali–silica reaction. Early-age strength can match OPC with high-reactivity clays; later-age strengths routinely meet 42.5 and 52.5 grade requirements.
Importantly, LC3 does not require high-purity kaolin. Clays with 40 per cent or even lower kaolinite content can be activated successfully, expanding raw-material availability across India. Calcination can use adapted rotary kilns or dedicated flash calciners, making the technology compatible with existing plant infrastructure and far less capital-intensive than carbon capture.
Economic analyses show that LC3 can be produced at equal or lower cost than OPC in many locations because of reduced energy demand and cheaper clay. Life-cycle assessments consistently report 30–40 per cent lower embodied CO2 per tonne of cement.
Table 2. Comparative profile: OPC versus LC3-50
Parameter OPC LC3-50
Typical clinker content ~95 per cent ~50 per cent
CO2 emissions (relative) Baseline (≈0.85 t CO2/t cement process + fuel) 30–40 per cent lower
Clay calcination temperature Not applicable 700–850 °C
Key hydration products C-S-H, portlandite, ettringite C-A-S-H + carboaluminates
Chloride & sulphate resistance Good Superior
Production cost potential Baseline Equal or lower in most locations
Infrastructure compatibility Existing High (minor adaptations)

In India, commercial adoption has begun in earnest. JK Cement commenced the first commercial production of LC3 in the Indian subcontinent at its Mangrol plant in Rajasthan in 2025 under BIS standard IS 18189.
By early 2026, approximately 2,000 tonnes had been produced and sold, avoiding an estimated 500 tonnes of CO2. JK Lakshmi Cement followed with commercial launch of its Green PRO LC3 grade from the Jaykaypuram plant. As of mid-2026, two producers are supplying LC3 to the market. The first large-scale infrastructure application is the Noida International Airport (Jewar), where LC3 was used in the runway and a building complex, demonstrating full constructability and performance under demanding conditions. These early volumes are still small relative to national cement demand, but they mark the critical transition from pilot to commercial reality. Companies that scale capacity now will be positioned to capture both CCTS credits and emerging green-procurement demand.

Why the shift is accelerating
According to the World Bank’s State and Trends of Carbon Pricing 2026, direct carbon pricing now covers nearly 30 per cent of global greenhouse-gas emissions and generated more than US$107 billion in public revenue in 2025. The average global carbon price stands at approximately US$21 per tonne, although regional prices vary widely.
In Europe, the EU ETS price has traded near €80–85 per tonen in mid-2026. Free allocation for cement is being withdrawn in parallel with CBAM. European producers therefore face a clear signal: every tonne of avoided CO2 improves both compliance and competitiveness. Holcim has scaled calcined-clay production, including Europe’s first dedicated line at Saint-Pierre-la-Cour (France) and a second line in the Czech Republic (2026). Heidelberg Materials, Cementir (FUTURECEM) and others have commercialised low-clinker calcined-clay blends across multiple markets, showing that carbon-adjusted profitability is already reshaping capital allocation in the world’s most mature carbon market.India’s CCTS is now operational. Binding emission intensity targets apply to 186 cement facilities for FY 2025–26 and FY 2026–27. Average required reductions for integrated plants are modest (around 2.7 per cent by FY 2027), yet the direction is clear.
Trading of Carbon Credit Certificates is expected in the second half of 2026, with early prices likely in the `800–1,500 per tonne range. Plants that outperform targets can sell credits; those that underperform must buy them or face compensation. Cement is well positioned to be a net supplier of credits if clinker factor continues to fall through LC3 and other low-clinker systems.

Way forward for India
India starts from a strong baseline, world-class energy efficiency and a clinker factor already lower than the global average. The next competitive frontier is the deliberate reduction of process emissions through clinker substitution at scale. LC3 is uniquely suited to Indian conditions because suitable clays are widely distributed, the technology fits existing kiln and grinding infrastructure, and the resulting product can meet the performance demands of both infrastructure and building construction.
A practical national pathway contains five interlocking elements:

  1. Standards and acceptance: Accelerated finalisation and promotion of BIS specifications for calcined-clay and limestone–calcined-clay cements will remove a key barrier to commercial uptake. Alignment with European practice (EN 197-5) can facilitate knowledge transfer and export readiness.
  2. Supply-chain development: Investment in flash calcination capacity and systematic characterisation of regional clay deposits will secure reliable, low-cost feedstock. Existing rotary kilns can be adapted for initial volumes while dedicated calciners are built.
  3. Incentive alignment: Part of variable compensation for plant managers, sales teams and senior leadership should be linked to emissions intensity reduction and to the volume of lower-carbon products (including LC3) sold. Without this link, traditional volume and cost targets will continue to dominate behaviour.
  4. Product-level carbon accounting: Reliable measurement of emissions intensity at the individual cement grade level, supported by third-party verification where required, is essential for both CCTS compliance and credible green claims.
  5. Demand-side pull: Green public procurement policies that specify maximum embodied-carbon thresholds for major infrastructure projects will create a predictable market for LC3 and other low-carbon cements, accelerating scale and cost reduction.
    Companies that treat LC3 as a strategic product line rather than a niche offering will be better positioned to generate surplus Carbon Credit Certificates, capture any emerging green premium, and protect margins as carbon costs rise.

Organisational changes required
Technical capability alone is insufficient. Three organisational shifts are required.
Daily management: Emissions intensity must appear on the same daily and monthly dashboards as heat consumption, power consumption and utilization. Plant reviews should examine both conventional and carbon-adjusted results.
Incentives: A meaningful portion of bonuses for plant heads, technical teams and sales leadership should be tied to lower emissions intensity and successful commercialisation of LC3 and other low-carbon grades.
Commercial approach: Sales teams need clear volume and pricing targets for lower-carbon products, supported by technical service that helps customers specify and place the material correctly. Without commercial pull, excellent technical performance remains under-utilised.

Table 3. Three-stage roadmap to carbon-adjusted profitability
Time Horizon Priority Actions Expected Outcome
Next 12 months Add emissions intensity to plant dashboards; establish internal carbon price; initiate LC3 pilot production and customer trials Visibility and early organisational learning
12–24 months Revise incentive systems; scale LC3 and other low-carbon grades to key accounts; secure third-party verification capability People and sales aligned with carbon goals
24–36 months Embed carbon-adjusted metrics in board reporting and capital allocation; expand calcined-clay capacity Full system integration and competitive advantage

Questions senior leaders should ask
Boards can accelerate the transition by insisting on answers to a short list of questions:
• Is our carbon-adjusted profit improving, stable or declining relative to conventional EBITDA?
• Did recent volume growth improve or worsen our emissions intensity?
• What share of sales already comes from lower-carbon products, including LC3, and what is the trajectory?
• How exposed is our capital expenditure plan to rising carbon costs under CCTS and potential CBAM-related requirements?
• Do our incentive systems still reward only volume and cost, or have they been updated to include carbon performance?
Treating carbon with the same seriousness as energy cost or kiln utilization does not diminish operational excellence; it expands the definition of excellence to match the new competitive reality.

Looking ahead
By 2030 the gap between leading and lagging cement companies will not be decided by who records the lowest specific heat consumption. It will be decided by who delivers the strongest carbon-adjusted profits.
Absolute emissions may still rise as national production grows. That is not the issue. Companies that reduce intensity year after year and successfully sell cleaner products will pull ahead in both domestic and export markets. Those that do not will fall behind, even if their traditional efficiency numbers look strong.
Operational excellence built the Indian cement industry. It remains the foundation. It is no longer the complete picture. Carbon-adjusted profitability is the clearer measure of success.
LC3 is not a distant technology. It is available now. It cuts CO3 by 30–40 per cent, works with existing plants, and is already in commercial production in India. Companies that treat it as a strategic product, not a pilot, will protect their margins and generate tradable credits.
Leaders who act now will place carbon metrics on daily dashboards, link incentives to intensity reduction and LC3 sales, invest in calcined-clay capacity, and build commercial capability to sell lower-carbon products. They will shape the next chapter of the industry.

References

  1. World Bank. (2026). State and Trends of Carbon Pricing 2026. Washington, DC: World Bank Group.
  2. International Carbon Action Partnership (ICAP). (2026). India Carbon Credit Trading Scheme – Status and Coverage. Berlin: ICAP.
  3. Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency. (2025). Greenhouse Gases Emission Intensity Target Rules, 2025. New Delhi: Government of India.
  4. Scrivener, K., Martirena, F., Bishnoi, S., & Maity, S. (2018). Calcined clay limestone cements (LC3). Cement and Concrete Research, 114, 49–56.
  5. RMI. (2024). The Business Case for LC3. Rocky Mountain Institute.
  6. European Commission. (2026). EU Emissions Trading System – Allowance Price Data and Free Allocation Phase-out Schedule. Brussels.
  7. Holcim. (2025–2026). Scaling Calcined Clay for Sustainable Building – Corporate Updates on European and Latin American Capacity. Zurich: Holcim Ltd.
  8. LC3 Project / EPFL. (2026). LC3 – A Guide to Best Practices for Scalable, Affordable and Sustainable Low-Carbon Building. Lausanne: École Polytechnique Fédérale de Lausanne.
  9. Business Today / Industry Reports. (2026). First Large-Scale LC3 Application at Noida International Airport, Jewar. New Delhi.
  10. NITI Aayog / Industry Analyses. (2026). Roadmap and Baseline Performance Indicators for the Indian Cement Sector. New Delhi.
  11. Springer / Innovative Infrastructure Solutions. (2026). LC3 Systems: A Review of Chemistry, Performance, Durability and Sustainability toward Market Adoption.
  12. Cementir Holding / Industry Sources. (2025–2026). FUTURECEM and Related Low-Clinker Technologies in Europe.
  13. Climate Risk Horizons & Independent Analyses. (2026). Assessment of Emission Intensity Targets under India’s CCTS for Cement and Other Hard-to-Abate Sectors.
  14. GCCA / TERI. (Various years). Decarbonization Roadmaps for the Indian Cement Industry.
  15. EN 197-5:2021. Cement – Part 5: Portland-composite cement CEM II/C-M and Composite cement CEM VI. European Committee for Standardization.

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More Oversight Makes Cement Plants Less Safe

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Dijam Panigrahi makes a counterintuitive but data-backed argument that routing every sensor alert through human approval does not make cement plants safer.

India’s cement industry has spent the last two years wiring kilns, mills and coolers with sensors and automated control systems, and the safety case for doing so is strong on paper. Contract workers still make up the majority of the industry’s workforce, and fatal accidents remain a recurring problem. The Indian National Cement Workers Federation has noted that around 83 per cent of workers in the sector hold precarious positions, a fact that resurfaced after an oxygen cylinder explosion killed three contract workers at a plant in Chhattisgarh.
Industry tallies compiled by IndustriALL found cement plants recorded at least seventeen accidents in one year with 21 workers killed, and ten accidents the following year with nine killed, most of them contract staff. Automated monitoring, in theory, closes that gap. A sensor never gets complacent and never skips a check because a shift is short staffed.
However, plants that respond by routing every anomaly reading to a person for approval are quietly building a system that fails the same way understaffing does. When operators receive dozens of flagged deviations a shift, most of them minor, they learn a simple lesson: the fastest way through the queue is to approve without reading closely. The safety benefit disappears, not because the technology failed, but because the humans supervising it adapted to the volume.

Why alerts get ignored
A study cited by manufacturing technology publisher Applied SmartFactory found more than 95 per cent of alarms in a semiconductor fab were low priority, and only about 4 per cent ever triggered an action, with just 100 out of 5,000 alarms accounting for 70 per cent of all alarm activity. The mechanism is the same whether the trigger is a vibration sensor or an AI model flagging a kiln temperature swing. Once the ratio of noise to signal crosses a threshold, workers stop treating the system as a decision aid and start treating it as a formality to clear.
The scale of AI deployment underway makes this more than a theoretical risk. Stanford’s 2026 AI Index Report found organisational adoption of AI has reached 88 per cent, even as documented AI incidents rose to 362 in 2025, up sharply from 233 the year before, according to analysis of the report. The Index also found only about a third of organisations have adopted a formal governance framework, with NIST’s AI Risk Management Framework cited by 33 per cent and ISO/IEC 42001 cited by 36 per cent.
Most manufacturers are deploying monitoring systems faster than they are building the judgment for when a flagged event actually needs a person’s attention. In India, plants run by JK Cement have begun pairing CCTV feeds with AI to define safe zones around heavy machinery, a promising direction that still depends on operators trusting and reading the alerts the system generates.

A three-tier model for cement plant
The fix is not less monitoring or more monitoring. It is classifying decisions by risk and by novelty, rather than treating human oversight as a single switch that is either on or off. A workable model sorts factory floor events into three tiers.
The first tier, proceed, covers deviations the plant has seen before that fall within known safe bounds, such as a kiln feed rate adjustment within an established range. These should run without a stop for approval, because routing them to a person only trains that person to click through.
The second tier, pause, covers events that are unusual but not yet dangerous, such as a vibration reading trending toward a limit or a fuel blend shifting outside its typical mix. These warrant a brief human check before the system proceeds, giving an operator the chance to apply judgment the model does not yet have.
The third tier, escalate, covers events that are both high risk and unfamiliar, such as a pressure reading combined with a temperature spike that has no close precedent in the plant’s history. These should stop the process entirely and require a decision from someone with the authority to shut down a line.

Who should set the threshold
Where these tiers get drawn matters as much as the framework itself. Threshold setting is frequently handed to the vendor supplying the monitoring software or to a plant’s IT department, both of which understand the technology but not the specific tolerances of a given kiln, mill or line. Operations staff, who know that a particular grinding unit runs hotter under monsoon humidity or that a calciner behaves differently after a refractory reline, are better positioned to calibrate what counts as routine on their own equipment.
Handing threshold ownership to operations does not remove IT or vendors from the process, but it puts the calibration decision closest to the people who live with its consequences on the floor.

Signals that oversight is actually working
A few concrete indicators reveal whether a monitoring setup is functioning as intended or simply providing the appearance of safety. The escalation rate over time is the first: a rate that stays flat or climbs slowly as operations mature is healthy, while one that spikes and then falls sharply often means operators have started overriding the system rather than engaging with it. Time to resolution is the second: escalations that take progressively longer to close suggest fatigue or confusion about ownership, not diligence. The third, and most telling, is how accurate the system’s own uncertainty estimates turn out to be, meaning whether events flagged as high risk actually correlated with real incidents, and whether events waved through stayed incident free. A system whose escalations do not track with actual outcomes trains operators toward the same complacency that unmonitored equipment produces.
None of this argues against automation in Indian cement manufacturing, where a labor structure built on contract work and a track record of serious accidents make better monitoring an urgent need. It argues for treating human oversight as a design problem with three distinct settings, rather than a single
dial turned up whenever a plant wants to look safer on paper.

About the author:
Dijam Panigrahi, Co-founder and COO, GridRaster, is a spatial computing platform for industrial enterprises and manufacturers.

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