Concrete

Powering Cement’s 700 MTPA Vision

Published

1 month ago

March 18, 2026

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Milind Khangan explains how India’s cement industry is transforming material handling into a strategic backbone through Automation, AFR integration, and Advanced Analytics.

India’s cement industry, the world’s second-largest with an installed capacity approaching 700 million tonnes per annum (MTPA), lies at the core of the nation’s infrastructure expansion, urbanisation and Net-Zero transition. Yet, while kilns, fuels and clinker chemistry often dominate decarbonisation discussions, it is Material Handling (MH), the movement, storage and flow of raw materials, clinker, fuels and cement, that ultimately determines whether plants meet their designed efficiencies or face chronic operational bottlenecks.
Currently, as of 2026, material handling has evolved from the background utility to a strategic productivity system, which has been achieved through the use of long-distance conveying, automated yards, AFR logistics, as well as the use of digitised dispatch. The sector’s transformation can be framed through the 3As of Modern Material Handling: Automation, AFR Integration and Advanced Analytics. Together, they form a structured pathway to enhance throughput, stabilise pyro-system performance, improve energy efficiency and reduce emissions while strengthening plant competitiveness in a carbon-conscious market.

Automation: strengthening the primary flow
The first pillar, Automation, focuses on high-impact mechanical and control interventions across the value chain. With unplanned downtime costing Tier-1 integrated plants between 15 and 20 lakhs per hour, the reliability of conveyors, elevators, reclaimers and pneumatic systems is now a core operational and financial priority.

Long-distance conveying and curved systems
Quarries have been advancing into the captive mining areas, which has led to the use of curved conveying systems as a replacement to the traditional use of diesel, thus reducing the environmental impact as well as the costs of haulage.
• Pipe conveyors offer a completely enclosed system, which means there will be no spillage of materials, thus offering a complete dust suppression system.
• Permanent Magnet Motor drives offer an 8 to 12 percent electrical cost savings as opposed to the use of induction motors.
• During FY25 and FY26, multiple producers in Rajasthan and Andhra Pradesh commissioned 10 to 15 km pipe conveyor networks to stabilise raw material transport and reduce Scope 1 emissions.

High-efficiency vertical transport
Vertical movement of kiln feed and clinker, historically prone to mechanical failure, has undergone significant modernisation.
• Steel-cord belt bucket elevators now achieve lift heights above 120 metres and capacities of up to 1,500 tonnes per hour.
• Drift and speed monitoring systems detect misalignment instantly, improving uptime and reducing maintenance requirements by approximately 25 percent compared to chain elevators.
• These elevators are now widely adopted for 10,000 tonnes per day pyro lines.

Advanced stacker reclaimer platforms
Modern stockyards are equipped with automated homogenisation and reclaiming systems that directly influence raw mix quality.
• Precision stacking has reduced Lime Saturation Factor variance to below 3 percent, improving kiln stability.
• Bridge-type reclaimer offers uniform extraction of materials, thus preventing feed shocks.
• Moisture as well as bulk density sensors offer the ability to correct feed rate in real time.

Pneumatic conveying and fine-material handling
Efficient and enclosed handling of fine materials such as cement, fly ash and slag requires modern pneumatic conveying.
• Optimised air-to-material ratios reduce energy consumption by 10 to 15 percent.
• Closed-loop conveying reduces dust loading and enhances bag filter performance.
• Flow-regulated lines prevent clogging and ensure dispatch reliability.

Automation therefore delivers immediate benefits, including improved uptime, lower energy use, reduced spillage and more stable kiln and mill performance.

AFR integration: logistics of the green pivot
India’s 25 per cent to 30 per cent Thermal Substitution Rate (TSR) target for 2030 makes Alternative Fuels and Raw Materials (AFR) logistics a central design requirement for modern cement plants. AFR streams often have low density, high moisture, variable particle size and bridging tendencies, which require dedicated engineering solutions.

Automated AFR receiving to calciner circuits
Modern AFR yards employ enclosed, mechanised and automated systems to eliminate manual exposure and stabilise feeding.
• Walking-floor unloading, mechanical dischargers and screw weigh-feeders maintain dosing accuracy within plus or minus 1 percent.
• Dust-controlled pre-processing lines, including drying, shredding and homogenisation, improve fuel consistency.
• Indian majors recorded 2 to 3 percent TSR improvements in FY26 after implementing automated AFR lines.

RDF, biomass and municipal waste handling
RDF and biomass materials require special treatment due to the variable moisture content and density.
• Flow activators and vertical agitators are used to prevent bridging in silos and hoppers.
• Homogenisation equipment is used to control calorific values and moisture content.
• Accurate weighing and dosing prevent calciner temperature shocks and support stable combustion.

Liquid and Hazardous Waste Management
Industrial liquids and hazardous wastes must have closed and compliant systems to ensure the safe management of the wastes.
• Nitrogen-blanketed storage tanks reduce vapour-related hazards.
• High-density sludge pumps allow controlled and leak-free transfer.
• Hermetically sealed metering systems comply with CPCB and SPCB guidelines.

Cement as a circular economy partner
Material handling capability now positions cement plants as regional waste utilisation hubs.
• Urban-industrial partnerships support reliable RDF supply chains.
• Centralised AFR hubs are emerging across high-production corridors.
• Co-processing minimises the use of landfills and meets national circularity goals.

AFR integration therefore provides dual
value by reducing fossil fuel consumption and expanding the cement sector’s role in India’s waste management framework.

Advanced analytics: the digital twin of material handling
Advanced Analytics signifies a shift from traditional practices to predictive and model-driven material handling processes. In 2026, the use of digital twin technology, IoT-based diagnostics, and AI or ML-based optimisation tools has become an essential part of a modern cement plant.

AI-driven predictive maintenance
Digital diagnostics of material handling equipment have led to a shift from reactive to predictive maintenance.
• Vibration and acoustic analysis can now predict critical failures 10-15 days in advance.
• Machine learning-based alignment monitoring minimises belt tears and plant downtime.
• Closed-loop AI models help stabilise kiln feed, reducing specific heat consumption by 3 to 5 percent.

Packing, Dispatch and Inventory Automation
The packaging and dispatch stage has become one of the most heavily digitalised parts of MH.
• Rotary packers with capacities up to 4,000 bags per hour improve throughput.
• Robotic palletisers minimise human intervention, resulting in fewer packaging errors.
• Truck loading machines minimise the time taken for trucks by 35-40 percent.
• RFID-based bag tracking systems, integrated with the weigh bridges, make the dispatch process 100 percent accurate.

Centralised Command Centres and Digital Twins
Integrated digital control rooms have begun to manage material handling operations from the mine to the market.
• Digital twins may be used to model belt loading, reclaim operations, AFR flows, and silo levels.
• Unified dashboards can be used to integrate conveyor health, yard inventory, and dispatch performance.
• Predictive scheduling and sequencing may be used to de-congest the system and improve stability.
Advanced analytics may take material handling from a reactive maintenance task to a strategic intelligence layer of the overall plant.

Policy and financial levers: Carbon market momentum
The Carbon Credit Trading Scheme (CCTS), launched in mid-2025, has helped to increase the pace of investments in modern MH systems.
• The Bureau of Energy Efficiency stipulates the reduction of GHG Emission Intensity by 2 percent for cement plants during FY25 to FY26.
• Electrified MH systems, solar-powered conveyor galleries, PMM-based drives, and AFR infrastructure qualify for carbon credits.
• Increasing the use of renewable-based MH systems can lead to greater Scope 2 reductions and improve carbon compliance.
With the development and evolution of the carbon market, MH systems offer the benefits of both operational ROI and regulatory benefits.

Conclusion
Material handling, which for decades played second fiddle to pyroprocessing, has emerged as a key driver of not only competitiveness but also sustainability and reliability in India’s cement industry. The three as of material handling provide a clear roadmap for scaling up improvements in:
• Increase reliability and throughput
• Reduce energy consumption
• Enable higher TSR levels
• Strengthen predictive and digital control
• Improve safety and ESG performance
• Reduce lifecycle and maintenance costs
As India prepares for a decade of infrastructure growth and circularity, the material handling systems implemented currently will be the benchmark for the next many decades. Scaling up these innovations from pilot projects to full-scale implementation is critical for India’s cement industry to reach its target of 700 MTPA and establish itself as a benchmark for modern material handling excellence.

About the author:
Milind Khangan, Marketing Head, Vertex Market Research & Consulting holds over 5 years of experience in market research, lead generation, and team management.

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The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

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Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

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President Droupadi Murmu inaugurated a series of infrastructure projects in Rourkela including a Planetarium and Science Centre, the Nirmal Munda Parivesh Path, a Tribal Museum and an Integrated Command and Control Centre. The initiatives are intended to boost scientific awareness, preserve tribal heritage and strengthen urban governance in the region. The range of facilities reflects a deliberate effort to combine cultural conservation with technological and civic improvements.

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India’s Carbon Credit Trading Scheme (CCTS) is operational and an analysis by ICRA ESG Ratings covering 14 companies in cement and aluminium finds a limited near-term financial impact but rising costs over time. The report indicates initial compliance costs remain absorbable while continued reliance on credit purchases may escalate production costs as emission targets tighten. The assessment suggests the effect becomes more pronounced by FY27 if current trends persist.

At an assumed carbon price of $10 per t of CO2, ICRA ESG estimates profitability for some cement companies could decline by up to 19 per cent, while aluminium players could face a hit of around three per cent. The analysis highlights widening emission gaps, with the cement sector deficit rising from about 0.5 mn t of CO2 equivalent in FY26 to 1.3 mn t in FY27. Aluminium sector gaps are projected to increase from 0.5 mn t to 1.4 mn t over the same period.

Companies that undertake timely emission reductions through measures such as blended cement, alternative fuels and renewable energy could generate surplus credits and limit compliance costs, according to the report. In contrast, firms maintaining current emission intensity levels are likely to incur recurring credit requirements, especially under higher production growth scenarios. ICRA ESG characterises the scheme primarily as a transition signalling mechanism designed to nudge companies towards lowering emission intensity rather than create an immediate financial burden.

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