Indian cement manufacturers are significantly intensifying their efforts to decarbonise operations, driven by a dual imperative: sustainability commitments and the need for enhanced cost competitiveness. The sector, which is crucial for India’s infrastructure development, is a substantial contributor to greenhouse gas emissions, making its transition to greener practices a national priority. Leading companies are increasingly adopting renewable energy sources, improving energy efficiency, and exploring advanced technologies to reduce their carbon footprint.
The cement industry in India, the world’s second-largest market, is characterized by robust demand fueled by urbanisation, infrastructure projects, and housing needs. As of the end of FY26, the country’s cement production capacity stood at 718 million tonnes per annum (MTPA), with projections indicating a further addition of 100 million tonnes of grinding capacity by FY28. Recognizing the environmental impact of cement production, manufacturers are charting ambitious net-zero emission roadmaps, with many setting targets for the next 15 to 20 years.
Shift Towards Green Power and Energy Efficiency
A key strategy being deployed across the industry is the increased adoption of green power. Cement makers are stepping up efforts to integrate renewable energy into their overall energy mix. This transition is largely supported by the implementation of waste heat recovery systems (WHRS), which capture and convert heat generated during the cement production process into electricity for captive use. Beyond WHRS, companies are also investing heavily in wind and solar power capacities.
Companies like Ramco Cements have already commissioned significant WHRS capacity, reducing their reliance on purchased power and increasing their green energy share. Ramco Cements reported that in FY26, approximately 40% of its energy requirements were met through green power, a notable increase from 36% in the previous fiscal year, driven primarily by improved wind power generation.
Rating agency Icra highlights that Indian cement companies are planning a substantial increase in their green power capacity, projecting it to grow from around 4.0 GW in March 2026 to 5.8-6.0 GW by March 2028. This expansion is backed by planned investments of approximately ₹12,000-13,000 crore over the next two years. The additional green energy capacity is expected to generate annual savings in the range of ₹6,200-6,700 crore, with an estimated payback period of 1.8 to 2.2 years.
Adoption of Alternative Fuels and Blended Cement
In addition to green power, the industry is focusing on increasing the use of alternative fuels and the production of blended cement. Alternative fuels, such as biomass and refuse-derived fuel, are being co-processed in cement kilns to replace conventional fossil fuels, thereby reducing reliance on finite resources and lowering emissions. While the current thermal substitution rate (TSR) in India is around 6%, some plants have achieved significantly higher usage, and the industry is working towards increasing this metric.
The production of blended cement, which incorporates industrial by-products like fly ash or slag, is another critical decarbonisation lever. This practice reduces the need for clinker, the most energy-intensive component in cement production, leading to a substantial cut in embodied CO2 emissions. The Indian cement industry has a strong track record in this area, with blended cement accounting for a significant portion of the total cement produced.
Exploring Advanced Technologies
Looking ahead, the cement sector is also evaluating and exploring more advanced technologies, including carbon capture, utilisation, and storage (CCUS). The Indian government has proposed significant financial outlays to support the deployment of CCUS across key industries, including cement, signalling a concerted effort to tackle hard-to-abate emissions.
Companies are also investing in process efficiency improvements, digital transformation, and optimising logistics to further reduce their environmental impact. For instance, UltraTech Cement has implemented digital solutions and AI-based monitoring systems in its mining operations to enhance efficiency and reduce carbon emissions. The company has also been a pioneer in co-processing waste materials in cement kilns, diverting waste from landfills and reducing fossil fuel consumption.
The sustainability agenda is not only driven by environmental concerns but also by the growing emphasis on Environmental, Social, and Governance (ESG) compliance. Investors, lenders, and regulators are increasingly scrutinizing companies’ environmental performance, pushing the cement industry to adopt cleaner and more responsible manufacturing practices. This proactive approach to decarbonisation is seen as vital for maintaining long-term operational competitiveness and meeting India’s national climate goals, including its commitment to net-zero emissions by 2070.
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The Chenab Times News Desk
