Pukhraj Sethiya and Kundan Singh present an analytical outlook on how the Indian cement industry is approaching sustainable mining, exploring the guiding frameworks, facing challenges and utilising digital tools.
India’s cement industry, second only to China in scale, is a backbone of national infrastructure and housing development. With over 700 million tonnes per annum (MTPA) of installed capacity and around 450 MTPA production in FY 2025, the sector accounts for nearly 8 per cent of global cement output. Limestone, the principal raw material, is sourced largely from shallow, land-intensive mining operations.
However, this dependence on primary extraction raises pressing concerns: land degradation, water stress, emissions, and community displacement. As India commits to net-zero by 2070 and global supply chains increasingly demand ESG compliance, cement-linked mining must undergo a transformation towards low-carbon, resource-efficient and socially inclusive practices.
This article provides an analytical view of sustainable mining in the cement sector, covering frameworks, barriers, digital enablers, consulting roles and global benchmarks shaping the industry.
Defining sustainable mining in the cement ecosystem
Sustainable mining is not merely about compliance—it is about optimising resource use while safeguarding ecological and social systems. In cement-linked mining, it implies:
Resource efficiency
o Moving beyond simple limestone extraction by minimising waste and optimising blasting, haulage, and processing.
o Integrating secondary raw materials (e.g., fly ash, slag, red mud) to reduce dependence on virgin limestone and extend the mine’s life.
o India’s clinker-to-cement ratio of ~0.70 (lower than the global average of 0.74) demonstrates progress, but further reduction is possible through blended cements.
Environmental stewardship
o Preventing soil erosion and biodiversity loss through scientific mine planning and phased reclamation.
o Water recycling, rainwater harvesting, and mine-pit water use are critical given that the cement sector is one of the top 10 industrial water consumers in India.
o Repurposing mine dumps for solar installations or afforestation can offset emissions and create alternative land value.
Community engagement
o Beyond CSR, sustainable mining emphasises creating resilient local economies.
o Employing local communities in ancillary services (transport, catering, non-critical supplies) promotes shared value and reduces operational risks from social unrest.
Regulatory compliance
o Adherence to evolving environmental clearance (EC) conditions, Mine Closure Plans and labour laws is non-negotiable.
o Global investors increasingly view non-compliance as a reputational and financing risk.
Post-mining land use
o Mine closure should not result in abandoned pits but in planned transitions—industrial estates, recreational parks or even water reservoirs that benefit surrounding regions.
Consulting: enabling sustainability-linked profitability
Mining companies often face a false dichotomy between sustainability and profitability. Consulting firms help realign strategies by quantifying the business case for sustainability.
Materiality Assessments: Identifying ESG factors most relevant to mining (e.g., water scarcity in Rajasthan, dust emissions in limestone belts of Chhattisgarh).
Life Cycle Costing: Demonstrating savings from energy-efficient crushers, conveyor systems over trucking or water-recycling plants.
Integrated ESG in Mine Lifecycle: Embedding sustainability from exploration (site selection) through design (haul road optimisation) to closure (reclamation).
Regulatory Navigation: Guiding companies through multi-layered frameworks—MoEFCC clearance, DGMS safety standards, and international benchmarks (GRI, TCFD, SBTi).
Cultural Transformation: Enabling leadership to cascade ESG values into operational metrics (e.g., tonnes CO2 per tonne clinker, water used per tonne mined limestone).
Such interventions convert ESG from a cost centre to a competitive advantage, directly improving investor confidence and market positioning.
Digital tools and financial modelling as enablers
Digital transformation in mining is no longer optional—it is a differentiator. When integrated with financial modelling, these technologies provide decision-makers with quantifiable sustainability outcomes.
Concept of ‘Borehole to Boardroom’ allows linking geological data directly with management dashboards.
Mine planning software + fleet management
Optimises pit design, reduces haul distances,and cuts diesel consumption (a major cost and emission source).
Fleet automation and dispatch systems can reduce fuel use by 10 per cent to 15 per cent.
IoT monitoring
Real-time sensors track air quality (dust), water discharge, and noise, ensuring early intervention before regulatory breaches.
AI and predictive analytics
Prevents equipment failures, reducing downtime and energy wastage.
Optimised blasting and grinding reduce overburden movement and electricity use.
Digital twins
Simulating various mining approaches allows assessment of both environmental outcomes and financial viability.
Enables stress-testing against future carbon prices or water-scarcity scenarios.
When combined with financial modelling, these tools demonstrate that upfront sustainability investments can yield long-term financial gains through reduced operating costs, risk mitigation, and enhanced funding access.
Challenges facing indian miners
Transitioning to ESG-aligned operations is not straightforward, especially in India. Major roadblocks include:
Capital Constraints: Many small to mid-tier miners lack access to low-cost financing for green technologies, unlike global peers where sustainability-linked loans are common.
Skill Gaps: A decade-long slump in mining activity has created shortages of skilled manpower, particularly in ESG integration and digital mining.
Regulatory Complexity: Overlapping state and central laws cause clearance delays. India ranks poorly on ‘ease of mine permitting’ compared to global peers.
Technological Lag: More than 70 per cent of limestone mines still rely on conventional drilling and blasting, with limited adoption of automation.
Weak Stakeholder Pressure: Unlike Europe, where consumer preference drives ESG compliance, India’s cement demand is largely cost-driven, lowering pressure on producers to adopt sustainability measures.
ReVal consulting’s ESG integration framework
ReVal Consulting’s approach demonstrates how ESG can be embedded into mining strategy:
Carbon Accounting and Reporting: Comprehensive measurement of Scope 1, 2, and 3 emissions.
Stakeholder Management: Engaging local communities as active partners, not passive beneficiaries.
Closure Planning: Designing legacy projects—reclaimed land converted to industrial hubs, eco-tourism parks or renewable energy sites.
This interdisciplinary model ensures that sustainability drives operational, financial and reputational outcomes simultaneously.
Global benchmarks shaping indian mining
Indian miners are increasingly influenced by international standards due to trade and investment flows:
ICMM Principles: Provide a framework for ethical mining across 38 global members.
SBTi (Science-Based Targets Initiative): Pushes companies to set emissions reductions in line with climate science.
TCFD (Task Force on Climate-related Financial Disclosures): Drives climate-risk reporting in corporate governance.
GRI and SASB Standards: Ensure comparability in ESG reporting, critical for global investors.
Aligning with these benchmarks improves access to green financing, enhances transparency and strengthens competitiveness in export markets.
Low-carbon mining strategy
Looking ahead, India’s cement-linked mining must align with the nation’s 2070 net-zero target. Strategic shifts will include:
Electrification and Renewables: Wider use of electric mining trucks, conveyors and renewable-powered crushers.
Smart Mine Design: AI-driven pit optimisation, autonomous haulage and real-time monitoring for efficiency.
Circular Mining: Repurposing overburden and tailings into aggregates, bricks or backfilling material.
Green Financing: Sustainability-linked bonds and loans increasingly tied to ESG performance indicators.
Policy-Led Innovation: Government incentives (e.g., Production-Linked Incentives for green tech), stricter emission caps and possible carbon pricing mechanisms.
Conclusion
For India’s cement sector, where mining is the foundation of operations, sustainability is both an imperative and an opportunity. Transitioning to ESG-driven mining practices is not simply about environmental stewardship; it is about ensuring long-term competitiveness, investor confidence and societal license to operate. With the right mix of consulting expertise, digital adoption, global benchmark alignment and policy support, Indian mining can reposition itself as a global leader in sustainable cement production. The critical question is no longer if mining should be sustainable, but how quickly and effectively the sector can pivot towards that future.
About the author:
Pukhraj Sethiya, India MD, ReVal Consulting, leverages two decades of mining expertise to deliver strategic, sustainable, and impactful solutions.
Kundan Singh, Associate Director and Lead – Management and Strategy Consulting, ReVal Consulting, specialises in strategy, finance, and due diligence across coal, cement, and metal mining.
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
Rakesh Rao
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JK Cement gained after being declared preferred bidder for the Gilund Limestone Block in Chittorgarh, Rajasthan, a lease area of 370.96 hectares. The firm saw its shares trade at Rs. 5550.05, up by 28.45 points or 0.52 per cent from the previous close of Rs. 5521.60 on the BSE. The scrip opened at Rs. 5569.15 and touched a high of Rs. 5625.00 and a low of Rs. 5531.00.
The stock recorded turnover of 1742 shares on the counter and the BSE group A stock with face value Rs. 10 has a 52 week high of Rs. 7565.00 on 20-Aug-2025 and a 52 week low of Rs. 4670.05 on 12-Jun-2026. Last one week high and low stood at Rs. 5625.00 and Rs. 5329.00 respectively. The promoters holding in the company stood at 45.66 per cent, while institutions and non-institutions held 40.61 per cent and 13.73 per cent respectively.
The e-auction conducted by the Government of Rajasthan resulted in the company being declared preferred bidder for the mining lease, and the allocation will enable the company to plan phased development of the deposit, subject to regulatory approvals. The Gilund block spans 370.96 hectares and its allocation is intended to support raw material security for the company’s cement operations in the region. The designation follows the government auction process and will allow the company to plan development and integration of the deposit into its supply chain.
The current market capitalisation stands at Rs. 430.38 billion (bn), reflecting market response to the mining news and prevailing valuation levels for the sector. Investors and analysts will watch for formal allotment and related disclosures that can clarify timelines, capital expenditure and expected production profiles. The report is intended for informational purposes and does not constitute investment advice, and market participants are advised to consult advisers before making decisions.
Star Cement has been declared the preferred bidder for the mining lease for Boro Lakhindong West Block following e-auctions conducted by the Government of Assam. The block is located in Boro Lakhindong Village, Umrangso Tehsil, Dima Hasao District, Assam, and extends over an area of 123 hectares. The estimated limestone resource is 207.822 million (mn) tonnes (t), a quantity that will supply raw material for cement production and support the company’s manufacturing operations in the region.
The company is engaged in the manufacturing and selling of cement clinker and cement and distributes products across the north-eastern and eastern states of India. Star Cement operates plants and logistics networks that procure and process limestone to produce clinker for cement, and the addition of Boro Lakhindong is presented as a strategic enhancement of feedstock availability. The preferred bidder status secures rights to the specified lease area under the terms of the auction process.
Financial results for the company in the fourth quarter of fiscal year 2026 showed a consolidated net profit rise of 20.24 per cent to Rs 1,481.0 mn on an 11.54 per cent increase in revenue to Rs 11,735.5 mn compared with the corresponding quarter of the previous year. Those results reflected higher sales volumes and revenue growth in the company’s primary markets and are cited in company disclosures accompanying the lease announcement. The reported performance provides context to the company’s ability to pursue and finance new mining lease opportunities.
Market reaction to the declaration was modest, with the scrip rising zero point thirty six per cent to trade at Rs 212 on the BSE. The award of the Boro Lakhindong lease concludes the e-auction process for the west block and assigns operational rights to Star Cement as the preferred bidder, subject to completion of statutory and contractual formalities.
