There are many elements that can make "Make-in-India" thrive. A sound industrial policy is one of them, and logistics is certainly another. Right now, logistics costs in India are 13-14 per cent! How it can be brought down to 10 per cent or even below? ICR takes a look.
Logistics-moving goods and connecting producers with consumers-is a critical part of the modern economy. India’s logistics sector is highly defragmented and the aim is to reduce the logistics cost from the present 14 per cent of GDP to less than 10 per cent by 2022, according to an update from the Department of Commerce. India’s logistics sector is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10,000 commodities, and 160 billion market size. It also involves 12 million employment base, 200 shipping agencies, 36 logistic services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks and insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.
India has been grappling with high logistics costs of 16-18 percent to start with making exports uncompetitive vis-a-vis China, which has lower logistic costs of 8-10 per cent, in the US and Europe it is 8-9 per cent while in Japan it is 11 per cent.
Completing the dedicated freight corridor (DFC) project will free up some of the existing railway network for passenger trains. As Procycon Mukherjee points out in his article, the existing rail network has been designed to move passengers and not freight. Therefore, it is need based to have such a kind of project DFC. Appropriate technology will be used to enable Indian railways to regain its market share of freight transport by creating additional capacity and guaranteeing efficient, reliable, safe and cheaper options for mobility to its users. This is one step in the direction of reducing logistic cost.
DFCs: Regaining market share
Currently, the Indian Railways has lost a significant portion of its goods business to the road sector and has hoped that it would be able regain market share once DFC is operational. Some of the positives of DFC, Indian Railways will run freight train at the maximum speed of 100 km/per hour against the current maximum speed of 75 kmph on tracks. The average speed of freight trains will also be increased from existing speed of 26 kmph on Indian Railways lines to 70 kmph on DFC.
The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is a public sector undertaking corporation run by the Government of India’s Ministry of Railways to undertake planning, development, and mobilisation of financial resources and construction, maintenance and operation of the DFCs. While the western DFC will cover 1,504 km from Jawaharlal Nehru Port Trust near Navi Mumbai to Dadri in Uttar Pradesh through Vadodara-Ahmedabad-Palanpur-Phulera-Rewari, the Eastern DFC covers 1,856 km from Ludhiana in Punjab to Dankuni, near Kolkata in West Bengal, and will traverse the states of Haryana, Uttar Pradesh, Bihar and Jharkhand. The Railways plan to complete more than 60-70 per cent of the work in the two corridors this financial year and make them fully operational by 2021.
The three new DFCs will cover 5,769 km. The preliminary engineering and traffic system study of these corridors has already been completed. After the cabinet approval, DFCCIL-a special purpose vehicle set up in 2006 under the railways ministry?will undertake a detailed project planning including plans for land acquisition. While the East-West Corridor (2,328km) will be built between Kolkata and Mumbai, the North-South Corridor (2,327 km) is planned between Delhi and Chennai and the East Coast Corridor (1,114 km) between Kharagpur and Vijaywada.
Inland waterways: Untapped potential
India is blessed with 7,551 km of coastline and about 14,500 km of navigable inland waterways. Yet this sector has remained neglected despite universal acceptance that transportation through waterways, both coastal and inland, is fuel efficient, environment friendly and more economical than rail and road. Of the navigable inland waterways, 4,503 km are national waterways, the development and maintenance of which is the responsibility of the Indian government and the remaining portion is with state governments.
Using waterways for transporting people and goods is nothing new for India. Until about 100 years ago, the Ganga River was a busy waterway that was used for the movement of commodities such as tea, jute, and spices. But with the coming of the railways, this watercourse fell into disuse. At present, according to a World Bank report, India’s freight movement traverses mainly on roads (65 per cent). Railways come next (27 per cent); waterways account for just (0.5 per cent) of the movement. The freight movement on waterways across countries is also much higher in the West and China than in India: In the US, it’s about 8.3 per cent; in Europe 7 per cent; and in China it is 8.7 per cent. There are several reasons why the Centre is so enthusiastic about the waterways project. According to the World Bank, which is financing the National Waterway Project, the cost to transport one tonne of freight over one km for highways is Rs 2.28. It is Rs 1.41 for railways and Rs 1.19 for waterways. Second, its greener means less polluting.
"As per RITES Report of 2014 on "Integrated National Waterways Transportation Grid", one litre of fuel moves 24 tonne km by road, 95 tonne km on rail and 215 tonne km on inland water transport. Third, ferrying goods via waterways is faster than on congested road and rail networks, which slows the movement of cargo, adding to uncertainties, and increasing the costs of trade. Fourth is the pollution cost of traffic bottlenecks.
While there are several positives of the waterways project, any infrastructure development will have environmental costs, and those must be taken into account while evaluating the benefits of the project. This is because while the main infrastructure [waterway] is naturally available in this case, it needs to be "trained, maintained and upgraded" to ensure that the movement of cargo carriers is possible.
One important aspect of this "training" a waterway is dredging, which is required to ensure that the required water depth is maintained everywhere for the goods carriers to pass.
India has six national waterways: the Allahabad-Haldia stretch of the Ganga river (running through Uttar Pradesh and West Bengal); the Dhubri-Sadiya stretch of the Brahmaputra (Assam); the Kottappuram-Kollam stretch of the West Coast canal along with the Udyogamandal and Champakkara canals (Kerala); the Kakinada-Puducherry stretch along with the designated stretches of the Godavari and Krishna rivers (Andhra Pradesh, Puducherry); the designated stretches of the East Coast canal, the Brahmani river and the Mahanadi delta (Odisha); and the Lakhipur-Bhanga stretch of the Barak river (southern Assam). Ships that can travel freely through sea and river channels were first freed from a few provisions of the Merchant Shipping Act in 2011. Incidentally Merchant Shipping Act regulates the movement of ships in the river and in sea. This relaxation is now being significantly expanded to cover more ships. The changes in the Act on river-sea vessels were aimed at reducing the costs of constructing and operating vessels to encourage coastal shipping, inland water transport and trade. It was also designed to encourage the upgradation of existing inland vessels for coastal operations.
A seamless integration of river-sea trade using coastal ships is expected to provide an alternative means of quick discharge and dispersal of cargo from mother ships docking at big ports and their onward movement by sea to various smaller ports along the coast as well as inland locations. As ships built under the river-sea vessel regulations require very little depth to dock, they can load and unload cargo at smaller ports, which is not possible for bigger ships.
The Sagarmala programme is an initiative by the Ministry of Shipping to promote port-led development in the country through harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes. Sagarmala’s vision can have a potentially transformative impact on India’s logistics competitiveness and the wider economy.
Road transport and hurdles
There has been a significant increase in the commercial vehicles on the road in the recent times. Increase in commercial vehicles is a reflection of increasing demand for the movement of goods. According to surveys by the Indian Foundation of Transport Research and Training, one in every three trucks in the country is overloaded and they are to blame for 50 per cent of road accidents. In 2011, overloaded trucks accounted for 20 per cent of road accidents and in 2013, around 38,370 people were killed because of these overloaded vehicles.
Most trucks are found overloaded by 25-50 per cent. Senior fellow and coordinator of the Indian Foundation of Transport Research and Training (IFTRT), SP Singh, said: "When a truck is overloaded by 10 per cent, it’s steering and brake control is reduced by 50 and 40 per cent, respectively. Overloading also reduces the productive life of the road by 80 per cent and the productive life of the truck by 30 per cent."
But small-time operators and middlemen who run the majority of the country’s trucks consider overloading a necessary evil. Part of the problem is the industry’s skewed ownership pattern that makes accountability difficult. The problem lay in the lack of implementation of the Motor Vehicles Act. As an example, Singh mentioned the over 260 computerised weighbridges which has not stopped trucks in the capital from getting overloaded.
Around 5,000 cargo operators control the freight movement and only in about 2-3 per cent of the cases do customers access the truck owners directly to book for their goods. S Sriram, the professor of Transport Economics at Mumbai University, attributed the ownership structure to low capital requirements, easily available truck driving licenses, and easy availability of freight. He said the operators regularly loaded their trucks beyond the permissible axle load to maximise each vehicle’s earnings and the consignors of bulk commodities, like fertilisers, steel and cement, overloaded the vehicles in order to get freight service.
It’s a fact that when a truck is overloaded, the control on the steering and brake are reduced. In addition, frequent overloading reduces the productive life of the truck as well as the life of the road. In order to reduce the overloading of trucks and accidents, the Government has taken some major steps. For instance, a high penalty has been proposed in the Road Transport and Safety Bill for those who fail to comply with the new rules, with a suspension of permits for one month upon the first offense and a cancellation of permits if the offense is repeated. But these measurements are not enough to solve the problem as the truck owners or operators are still continuing to load their trucks beyond the permissible axle load to maximise each vehicle’s earnings.
Similarly, the consignors of bulk commodities like fertilizers, steel, and cement, overload the vehicles in order to save on the freight cost. Considering the trip economics, they are willing to pay higher prices to enter the city. In fact, there are a few states that have almost legalised overloading by issuing formal permits; illicit payments mostly clear the way for the vehicles. While there are weighing stations on the highways, it is surprising that many states or cities in India don’t even have check-posts to stop overloaded trucks from entering into the city or a dedicate area such as bridges. So, it appears that the main solution to overloading may lie in the proper implementation and enforcement of the Motor Vehicles Act.
In order to curb overloading, government or transport officers should more aggressively follow the Motor Vehicles Act and take strict actions against the rules violators. With such enforcement of the regulation, we can expect to see lower accidents, a lesser number of casualties and less damage on the Indian roads. All these will lead to higher productivity of the transport companies and that of the logistics sector.
Another problem which is often encountered by the truck operators is so called local truck owners not allowing "outside" truck operators to load consignment at few locations where local truck associations are very strong and classify themselves as local v/s outside. This results in the returning the truck empty after unloading the goods. It leads to waste of fuel and increase in transport cost. Turnaround time of truck is another pain point for easy truck movement. Normally at any factory gate you will find number of trucks parked in hundreds waiting to receive their load. Many factories call the trucks on ad-hoc basis, whereas very few have a system of first in and first out. Use of technology will only improve the scene.
After introduction of GST, crossing the border of a state has become little easy, yet at many places authorities still insist on paper documents creating stoppages to make quick money. Ministry can think of creating flying squads to arrest such harassments.
Rivigo experiment
India needs one million new truck drivers every year for the next 10 years to support the ecosystem and achieve our GDP growth aspiration. It is estimated that India will have 480 drivers for every 1,000 trucks on the road by 2022. The problem is not in the truck driver’s income or skill gaps but is deep-rooted in his terrible lifestyle away from his family. Long periods of absence leading to social disrespect, stigma and a risk perception of the job which makes their families push them to quit their job. Truck drivers play a vital role in freight transportation industry but unfortunately, drivers don’t get their fair share of economic growth. At Rivigo, a start up logistic company is working relentlessly to build a system that strives to improve their socio-economic conditions through couple of measures. It follows relay models that helps over 95 per cent of the pilots (drivers) get back home every day and spend quality time with their families. Rivigo has been an innovator and trend setter in logistics.
This supply demand gap has put pressure on the logistics companies. Every transporter or logistics company cites recruitment and retention of truck drivers as the biggest growth inhibitor for them. This has been also being highlighted in the draft National Logistics Policy council in their latest report.
Relay trucking model
The solution to curb the unprecedented shortage of truck drivers in India is clear -to make truck driving a regular day job using relay trucking. Relay trucking is an operating model innovation where drivers change over after every few hundred kilometres of driving through a network of change-over stops called "relay pit-stops" and then get rostered back to their home base to return to their families every single day. Relay Trucking is better service, more efficient and "Human."
Rivigo has been transforming the sector with their global-first driver relay model and cutting-edge technology to consistently provide unparalleled delivery times and reliability to clients. They are solving the challenges of the logistics industry using technology – be it problems like fuel analytics, route planning, human behaviour analysis or pure-drudgery elimination tasks like auto-alert systems and intelligent decision systems. Their technology obsession has resulted in simple, intuitive technology products gaining quick and easy adoption by the trucking ecosystem stakeholders.
Post demonetisation of high value currency, the logistics industry is grappling with cash shortage which has affected fleet operations across the nation and has crippled the Indian highways. Fleet owners have come to a bottleneck and cash shortage is threatening delivery of goods to consumers and businesses. 90 per cent of trucking spend and 40-50 per cent of the non-trucking logistics spend is rendered in cash.
About 85 per cent of the fleet owners who own less than five trucks spend hard cash towards diesel purchase, which comprises 45-50 per cent of the cost of trucking. Toll charges, which amount to 10-15 per cent of trucking cost and other overheads such as driver wages and vehicle maintenance, are also disbursed in cash. Only EMIs and replacement capex including tyre-related expenses are done to an extent through digital modes such as bank transfers and cheque payments. Overall, road logistics cash spend is estimated to be $100 to $110 billion or Rs 650,000 to 750,000 crore which would easily add up to 40 per cent of the cash in circulation in our economy. This is assuming the multiplier effect of currency that applies both ways, that is, the drivers who now get paid through digital modes will largely continue to spend through digital modes (also enabled by the current push towards cashless economy) Operations in the trucking sector can be made entirely cashless through the use of E-POD to get direct payment transfers from customers, automated bank transfers with the breakthrough same day settlement for brokers, integrated payment solutions with fuel companies for dealer payments and toll payments can be achieved through NHAI initiative on FASTag through RFID tags and wallet solutions. Also, fleet owners can remunerate truck driver wages, reimbursements and incentive payments directly through the Jandhan accounts.
Apart from digitisation and faster turnaround of trucks, cashless trucking economy will bring significant second order benefits. It will ensure less inefficacy owing to proper accounting of cash-related wastages (fuel, toll payments), eliminating instances of kerosene mixing by drivers and poor quality roads" usage to avoid toll cash, which also directly leads to the poor health of the fleet and poses a safety hazard. On the other hand, drivers will face less harassment from RTO and sales tax officers on highways and check posts. It will also improve road safety and adherence to regulations as it is a level playing field for non-compliant and compliant fleet owners, ending overloading and violation of safety norms. Truck drivers, loaders and all the large skill pools can be brought into the mainstream economy and will qualify for loans from financial institutions. Furthermore, it will also ensure employers and contractors pay minimum wages to workers in this sector. Lack of in-hand cash will reduce instances of substance abuse (including alcohol) and negatively impact the commercial sex worker trade on the highways which often leads to contraction of HIV amongst truck drivers.
There is short term pain to the sector due to lack of cash but in the long term, it can turn around the sector completely by making it efficient and safer and contribute significantly in making India cashless.
Now coming to cement specific, where subject is little different. In cement around 30 per cent cost is incurred on logistics, which is substantially higher than the general industry norms. There is enough scope to bring it down and companies like Shree Cement are setting an example. Cement plants need to make extensive use of technology to bring down the cost. In many places cement plant uses a mixed model of railways and road for dispatch of cement but there are few locations like Gagal (Burmana) where only road movement is possible since rail head is absent. Many of the hurdles explained above are quite pronounced in cement industry and need to be tackled on war footing. Taking advantage of present economic slowdown, there can’t be better time to undertake such initiatives.
Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.
Surat (Gujarat)
Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.
Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.
Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.
The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.
The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.
Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”
He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”
Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.
Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.
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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Specialised rail logistics will move fly ash from power plants to infrastructure industries.
New Delhi
Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.
The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.
India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.
Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.
The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.
Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.
