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“AFR supports cost optimisation.”

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Raju Ramchandran, SVP & Head Manufacturing – Eastern Region, Safety and Sustainability, Nuvoco Vistas, discusses how AFR is turning cost pressure into a competitive edge for cement makers.

As cement producers navigate rising raw material costs and mounting emission-reduction mandates, alternative fuels and raw materials (AFR) have moved from a sustainability checkbox to a core operational strategy. Raju Ramchandran, SVP & Head Manufacturing – Eastern Region, Safety and Sustainability, Nuvoco Vistas, backs digitalisation and process innovation in this exclusive interaction.

What is your current approach to increasing the use of alternative fuels and raw materials across your cement manufacturing operations?
Alternative fuel and raw materials (AFR) have been a key focus area as we work towards reducing emissions while improving cost efficiency. At Nuvoco, sustainability is integral to our company’s vision and we remain committed to strengthening circularity across our operations. Over the years, we have steadily adopted practices around reuse, recycling and resource optimisation across our value chain – from raw materials and energy to water, waste and packaging. This has enabled us to minimise our dependence on virgin resources while creating more efficient and sustainable operations.
From a fuel perspective, we are actively re-optimising our power and fuel mix by replacing conventional fossil fuels with alternative fuels. In FY 2025-26, we achieved an AFR rate of 10 per cent. Our kilns are designed to safely utilise a wide range of waste streams, including biomass, Refuse-Derived Fuel (RDF) from municipal solid waste, industrial solid waste and liquid solvents.
During the year, we co-processed ~3.5 lakh tonnes of industrial waste across our integrated plants and grinding unit furnaces, utilising 2,67,263 MT of alternative fuel to replace conventional fossil fuel-which included co-processing 88,600+ metric tonnes of refined Refuse-Derived Fuel (RDF). We are also focusing on biomass and other lower-carbon fuels to further reduce our carbon footprint. Beyond sustainability, AFR supports cost optimisation by reducing reliance on imported fossil fuels and improving fuel flexibility in our operations.
Going forward, we aim to scale AFR adoption through stronger sourcing and process optimisation, helping build more resilient and cost-efficient operations. With rising raw material costs, we are also increasing the use of alternate raw materials while maintaining product quality. Our R&D wing, Construction Development and Innovation Centre (CDIC), plays a key role in testing ARMs at its state-of-the-art Mumbai laboratory and developing tailor-made recipes to optimise their use. This entire effort is consistent with the government’s roadmap to raise fuel substitution to around 15 per cent over the next few years.

Which alternative fuels and raw materials offer the greatest potential for reducing dependence on conventional fossil fuels and virgin materials?
A diversified mix of waste-derived fuels and industrial by-products offers significant potential to reduce our dependence on conventional fossil fuels and virgin raw materials, while maintaining operational efficiency and product quality. On the alternative fuels front, RDF, biomass and agrowaste, as well as industrial wastes and liquid solvents, offer strong substitution potential. In FY 2025-26, RDF and biomass/agrowaste contributed ~ 2.0 per cent and ~ 3.0 per cent, respectively, to our thermal fuel mix, with overall AFR utilisation at ~ 10.00 per cent.
Greater adoption of alternative fuels also helps in reducing petcoke consumption. For alternative raw materials, fly ash, slag variants, pond ash, conditioned ash, alternative gypsum and recycled minerals are key areas of focus. These materials help reduce clinker intensity and dependence on virgin mineral resources.
We see considerable scope to scale these solutions through stronger sourcing ecosystems, process optimisation and continued R&D, enabling greater resource efficiency while maintaining the quality and performance of our products.

What are the key technical, economic and operational challenges limiting the large-scale adoption of AFR in cement plants?
Scaling AFR adoption in cement plants involves addressing technical, supply chain and economic challenges. The primary one is feedstock variability-waste-based fuels differ widely in quality, composition, and calorific value, making it complex to maintain stable kiln performance.
As India’s waste ecosystem evolves, improving source segregation and aggregation can help create a more reliable supply of quality feedstock. Further investments in pre-processing (shredding, drying) and material-handling systems, along with efficient logistics, will support greater AFR adoption. At the plant level, maintaining the right balance
between higher AFR substitution, clinker quality and emission-norm compliance will remain important, with strong process controls enabling plants to scale adoption sustainably.

How are you ensuring consistent quality, availability and preprocessing of alternative fuels and raw materials to maintain stable kiln operations?
At Nuvoco, higher AFR usage is never pursued at the cost of product quality or environmental compliance. Our approach is built on a well-defined governance framework and trained plant teams who ensure AFR is embedded into daily operations. To ensure supply continuity and material readiness, we work closely with municipalities, authorised waste processors, and logistics partners to create stable, long-term sourcing networks in a fragmented
waste market.
We focus on standardising fuel specifications and making targeted investments in pre-processing infrastructure to ensure that incoming material is usable and efficient for our kilns. For instance, we have installed dedicated shredders across three integrated plants and expanded carbon black feeding bin capacity from 15 MT to 28 MT at our Nimbol Cement Plant.
To ensure uniform feeding, we deployed an in-house AFR screw feeding system at Chittor Cement Plant, (which drove a 34 per cent increase in AFR usage) and a low-CV liquid spray system at Arasmeta Cement Plant capable of processing up to 350 KL/month.
Once in operation, we rely on real-time monitoring of critical parameters-including kiln performance, emissions, and clinker quality-to ensure stable operations. When managed effectively, higher AFR substitution does not create trade-offs; instead, it enables sustainable operations while maintaining strict product quality and emission compliance.

What role are digitalisation, process optimisation and advanced combustion technologies playing in improving AFR substitution rates?
Digitalisation is becoming a big lever in improving Thermal Substitution Rates (TSR). Earlier, a lot of decisions around fuel mix and kiln optimisation were based on experience and manual adjustments. We are leveraging advanced analytics and AI to bring greater precision and consistency to kiln operations.
Under our DIRE (Digitalisation, Innovation and Renewable Energy) framework, we are leveraging AI-enabled business analytics dashboards on Power BI that give us real-time visibility into kiln operations, fuel mix, and waste heat recovery, helping teams take quicker and better decisions on the ground. Alongside this, we are developing an AI model that recommends the most efficient fuel mix, factoring in variables like moisture, cost, and operating conditions.
To further optimise performance, we have conducted catalyst and activator trials at multiple plants to reduce Specific Heat Consumption (SHC) and Specific Power Consumption (SPC), complemented by 24/7 condition monitoring and AI-driven predictive diagnostics via IoT sensors installed across kiln and mill circuits. The real shift is from being reactive to becoming predictive, anticipating what works best rather than adjusting after the fact. This not only helps improve TSR but also drives efficiency and cost optimisation.

How do you assess the overall environmental and economic benefits of AFR, including carbon reduction, waste diversion and energy savings?
AFR delivers benefits across carbon reduction, resource conservation and cost efficiency. Environmentally, AFR directly reduces our consumption of coal and petcoke and the associated CO2 emissions. Nuvoco continues to report among the lowest carbon intensity in the Indian cement industry, at 462.50 kg CO2 per tonne of cementitious material (FY26). It also diverts significant waste from landfills-in FY 2025-26, we co-processed ~3.5 lakh tonnes of industrial waste. From an economic standpoint, greater fuel substitution can reduce exposure to volatile petcoke and coal prices while improving overall fuel efficiency.
Overall, the combination of lower emissions, waste diversion, resource efficiency and fuel flexibility makes AFR an important lever for building a more sustainable and cost-efficient cement industry.

What needs to change across policy, waste management infrastructure and industry collaboration for India to significantly scale up AFR adoption?
Policy frameworks have played a critical role in advancing AFR adoption in India. As highlighted in NITI Aayog’s cement sector decarbonisation roadmap, the use of alternative fuels such as RDF is a key lever for reducing emissions and improving energy efficiency in the industry. This is further reinforced by the GCCA India-TERI (2025), Decarbonisation Roadmap for the Indian Cement Sector: Net-zero CO2 by 2070, which also emphasises scaling AFR as a key pathway for decarbonisation in the cement sector.
Regulatory support through Central Pollution Control Board (CPCB) co-processing guidelines and the Hazardous Waste Rules has enabled cement plants to safely utilise waste as an alternative fuel, creating a structured pathway for adoption. Our operational strategy directly aligns with these national frameworks and Extended Producer Responsibility (EPR) mandates.
More recently, policy direction has become even stronger. The government’s notification in January 2026 outlines a clear roadmap to increase fuel substitution rates from current levels to around 15 per cent over the next few years, along with measures to improve waste processing infrastructure. This provides both clarity and momentum for the industry to scale up AFR usage. At the same time, the opportunity lies in execution. Improving waste segregation at source, ensuring consistent availability of quality RDF, and strengthening coordination across municipalities, waste processors and industry will be critical to fully realise this potential.

  • Kanika Mathur

Concrete

UltraTech’s Kukurdih unit runs fully on green energy

The Chhattisgarh plant has met 100 per cent of its electricity needs through green energy since April 2026.

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UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.
The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.
Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.
The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.
As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.
Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.

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Concrete

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement prices rose in September as companies weighed further increases.

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Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.

The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.

The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.

South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.

Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.

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Concrete

Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant

Project receives incentives of up to Rs. 11.29 bn from state

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The Andhra Pradesh government has approved a greenfield cement project worth Rs. 30 bn by My Home Industries, along with incentives of up to Rs. 11.29 bn. The decision comes amid a political controversy in Telangana involving allegations about landholdings associated with My Home Group.

According to an Industries and Commerce Department order issued on September 25, 2026, the project is expected to create 2,000 jobs and begin commercial production by March 2029. The proposed facility will have capacity to produce 3.5 MTPA of clinker and 3.5 MTPA of cement.

The total investment includes fixed capital investment of Rs. 25.97 bn, pre-operative expenses of Rs. 2.23 bn, contingencies of Rs. 1.26 bn and working capital margin of Rs. 540 mn. The incentive package is capped at Rs. 11.29 bn, equivalent to up to 43.48 per cent of fixed capital investment, subject to completion of the committed investment by March 2029.

The package includes a capital subsidy of 39 per cent of eligible fixed capital investment, capped at Rs. 9.43 bn, payable over 10 years from the start of commercial production. It also provides reimbursement of Rs. 1 per unit on electricity purchased from distribution companies for 10 years, subject to a ceiling of Rs. 1.86 bn. A further incentive equivalent to 2 per cent of fixed capital investment is linked to the creation of the committed jobs and other policy conditions.

The state has approved the allotment of 27.19 acres through the Andhra Pradesh Industrial Infrastructure Corporation at actual cost. The project also involves land linked to two temples and the realignment of a canal across approximately 9.93 acres, with conditions requiring alternative temple facilities and company-funded infrastructure work. Telangana Chief Minister A. Revanth Reddy has separately raised allegations concerning land associated with My Home Group, including 2,463 acres near Shamshabad. The allegations remain subject to verification through official records and any investigations.

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