Displaying items by tag: India

India: The government has notified the Greenhouse Gases Emission Intensity Target Rules, 2025, establishing legally binding reduction targets for 282 industrial units in cement and other heavy industries. The notification was issued by the Ministry of Environment on 8 October 2025 after considering all suggestions and objections received on the draft rules, which were published on 16 April 2025. Facilities must reduce greenhouse gas emissions per tonne of output from 2023–24 baseline levels during the 2025–26 to 2026–27 compliance period.

The rules implement the Energy Conservation (Amendment) Act, 2022, which supports the creation of a domestic carbon market. Plants emitting below the target will earn tradable credits; those exceeding limits must buy credits or pay a penalty equal to twice the average credit price. The average price will be determined by the Bureau of Energy Efficiency (BEE). The Central Pollution Control Board (CPCB) will impose and oversee recovery of penalties, which must be paid within 90 days. Major cement producers including UltraTech, Dalmia, JK Cement, Shree Cement and ACC are included, with reduction targets of up to 3.4% over two years. The framework supports India’s Paris Agreement commitments and prepares exporters for mechanisms such as the EU Carbon Border Adjustment Mechanism.

India: There was ‘significant’ disruption at a public hearing in Visakhapatnam, Andhra Pradesh, on 8 October 2025 due to local people protesting against the development of a new cement plant by Ambuja Cements. Police deployed but in insufficient numbers to stop protesters from rushing the stage with banners and throwing furniture.

The protesters said that local people already suffer from high pollution levels and that they ‘do not have strength to bear the additional pollution’ emitted by the new plant.

Renewables reportedly generated more power than coal in the first half of 2025. Energy think tank Ember put out a report this week, which showed that solar and wind generation also grew faster than the rise in electricity demand in the first half of 2025. Global electricity demand rose by 2.6% year-on-year, adding 369TW. Solar increased by 306TW and wind by 97TW. Both coal and gas generation fell slightly, although a rise in other fossil fuel generation slowed the decline further.

Tellingly, fossil fuel generation fell in both China and India. Indeed, China added more solar and wind than the rest of the world combined, cutting its fossil fuel generation by 2% or by 58.7TWh. In India, renewables grew at the expense of fossil fuels, but demand growth was relatively low at 12TWh. In the US and the European Union (EU) fossil fuel generation actually increased. In the US, this was due to demand growth outpacing new renewable power. In the EU, weaker wind and hydroelectric output led to a greater reliance on coal and gas.

Meanwhile, a separate report by the International Energy Agency (IEA), also out this week, predicts that installed renewable power is likely to more than double by 2030 even as the sector navigates headwinds in supply chains, grid integration and financing. The IEA forecasts that global renewable power capacity will increase by 4600GW by 2030, roughly the equivalent of adding the total power generation capacity of China, the EU and combined. Solar photovoltaic (PV) will account for around 80% of the global increase in renewable power capacity over the next five years, followed by wind, hydroelectric, bioenergy and geothermal. Solar PV is expected to dominate renewables’ growth between now and 2030, remaining the lowest-cost option for new generation in most countries. Wind power, despite its near-term challenges, is still set for considerable expansion as supply bottlenecks ease and projects move forward, notably in China, Europe and India. However, the IEA’s outlook for global renewable capacity growth has been revised downward slightly compared to 2024, mainly due to policy changes in the US and in China.

This is all very well but what does it mean for the cement sector? At face value, possibly not much anytime soon. Both Ember and the IEA are talking about domestic electricity generation, not industrial. Ember reckons that half the world’s economies may have already peaked in fossil fuel power generation, but usage rates are still high. Prices of fossil fuels may even subsequently come down - to the benefit of industrial users such as cement plants. Yet, carbon taxes should, in theory, discourage increased usage - if they are working correctly.

Market distortions should not be discounted though. Some readers may recall what happened with carbon credits in the earlier stages of the EU emissions trading scheme. Free carbon allowances, calculated during the boom years of 2005 - 2007 when production was maxed out, were far too much to cover production during the resulting economic crisis. The sale of extra allowances provided many plants with a nice little earner and did little to encourage decarbonisation. Carbon capture is likely to require large amounts of electricity, but cheaper energy from renewables may help.

However, take a look at renewable energy stories in the Global Cement website news so far in 2025 and there are nearly 30 solar-related and seven wind-related ones. Cement companies are busily adding renewable capacity to reduce the cost of their electricity. This week, for example, Equator Energy commissioned a 10MW captive solar power plant at Mombasa Cement’s Vipingo plant in Kenya. Last week, Southern Province Cement in Saudi Arabia signed a 25-year solar energy power purchase agreement for its Bisha cement plant. Lest one forget, Saudi Arabia was the largest exporter of crude oil among Organization of the Petroleum Exporting Countries (OPEC) members in 2023 at 6,659,000 barrels/day. If a cement plant in Saudi Arabia is investing in renewables, then one might suspect a change in the global energy mix is occurring.

Electricity accounts for around 12% of the energy demand at a cement plant. Nearly two-thirds of that demand comes from either grinding raw materials or cement. Then, as mentioned above, carbon capture is expected to increase the demand for electricity. One estimate reckons it will increase electricity consumption by 50 - 120%. Renewables are expected to bring down the price of electricity but demand will also grow.

So… expect more renewable projects linked to cement plants.

India: JSW Cement, part of JSW Group, has commissioned a 1Mt/yr cement grinding unit at Sambalpur, Odisha, through its subsidiary Shiva Cement. The addition raises JSW’s total installed capacity to 21.6 Mt/yr. According to the company, the new facility will help meet rising cement demand in eastern India. The project was developed and financed by Shiva Cement under a commercial arrangement with Bhushan Power and Steel, and will produce cement exclusively for Shiva Cement’s use and consumption.

JSW Cement CEO Nilesh Narwekar said “The eastern region of the country is poised for exponential growth in the coming years. This new state-of-the-art facility in Sambalpur marks a significant milestone in our journey to expand and consolidate our position in this market,” he said.

JSW Cement currently operates seven manufacturing plants across India, including one integrated unit, one clinker plant and five grinding units.

India: Ambuja Cements, part of the Adani Group, will build a new cement grinding unit within the industrial estate of Adani Gangavaram Port. The project, spread across eight hectares, will be developed entirely within the port’s existing industrial zone. The facility will use industrial by-products such as slag and fly ash sourced from nearby steel and power plants. Raw materials will be transported via rail and sea to reduce CO₂ emissions associated with logistics.

India: Dalmia Bharat, through its subsidiaries, has announced a strategic investment of approximately US$397m in Maharashtra and Karnataka. The company will set up a 3.6Mt/yr clinker unit and a 3Mt/yr grinding unit at its existing Belgaum plant in Karnataka, alongside a new greenfield split grinding unit of 3Mt/yr in Pune, Maharashtra. The projects, funded through a mix of debt and internal accruals, are expected to be commissioned by the fourth quarter of the 2027 financial year. Following completion, and factoring in ongoing 2.9Mt/yr expansions in Assam and Bihar, Dalmia Bharat’s installed capacity will rise to 55.5Mt/yr.

The Belgaum expansion will strengthen supply in southern Maharashtra and deepen the company’s reach in Karnataka, while the Pune plant will focus on the untapped western Maharashtra markets.

Puneet Dalmia, managing director and CEO of Dalmia Bharat, said “This investment is a significant step in our Phase II expansion strategy, bringing us closer to strengthening our position as a pan-India player and to reach our intermittent goal of 75Mt/yr capacity by the 2028 financial year. The increase in our production capacity is primarily to meet the growing infrastructure demand in Western India.”

India: Around 15t of illegal narcotic drugs, valued at US$902,000, were incinerated at Ultratech’s cement manufacturing plant in Khor, Neemuch district, Madhya Pradesh, as part of a major operation by the Ministry of Home Affairs. Deputy Inspector General of Police (DIG) Nimish Agrawal said the drugs had been seized in about 200 cases registered across seven districts of the Ujjain range. He added that the contraband was destroyed in line with prescribed procedures.

India: Noida International Airport (NIA) has become India's first large-scale project to utilise limestone calcined clay cement (LC3), a low-carbon alternative to traditional cement. In a statement, concessionaire Yamuna International Airport Private Limited (YIAPL) said LC3 was used extensively in the construction of the airport.

Developed for more than 10 years by researchers at IIT Delhi, IIT Madras, Swiss Development Cooperation, École Polytechnique Fédérale de Lausanne (Switzerland), Universidad de las Villas (Cuba), and Technology and Action for Rural Advancement (TARA), LC3 emits up to 40% less CO₂ than conventional Portland cement. It costs 25% less to produce, uses low-grade limestone and clays and requires lower energy for manufacturing while delivering comparable strength.

India: Gebr. Pfeiffer has officially inaugurated its new manufacturing site in India, just one year after construction began, according to a Linkedin post. The facility is positioned as a key addition to the company’s global production network, complementing its existing base in Germany. Gebr. Pfeiffer said the project strengthens its international footprint while also aligning with long-term goals of efficiency and sustainability.

Producers and associations in India have been praising this week’s reduction in tax on cement. On 22 September 2025 the Goods and Services Tax (GST) rate on cement was cut from 28% to 18%. Local press showed examples of 50kg bags of ordinary Portland cement (OPC) dropping in price by 8% and Portland Pozzolana Cement (PPC) dropping by 11%.

Anoop Kumar Saxena, the CEO of Vicat’s operations in India, said its subsidiaries would be, “...passing on the complete benefit of this GST reduction to our customers across both our brands - Bharathi Cement in the South and Vicat Cement in Maharashtra.” Shree Cement’s chair HM Bangur echoed these comments. Similarly, the South Indian Cement Manufacturers' Association (SICMA) described the tax cut as a “particularly impactful move.” It went on to reiterate that the move would reduce construction costs to the benefit of both private builders, public housing and infrastructure projects.

Credit rating agency ICRA’s latest report on the cement sector in India has forecast that operating profit margins are set to rise by 12 - 18% to around US$10.50/t in the 2026 financial year (FY2026). The price of cement in India increased by 7.5% year-on-year from April to August 2025. Despite the current price drop though, an increase of 3 - 5% is anticipated for FY2026 as a whole. Cement sales volumes grew by 8.5% from April to August 2025 and are projected to increase by 6 - 7% to 480 - 485Mt in FY2026. ICRA noted that input prices are expected to remain stable in FY2026. However, it warned that petcoke and freight costs are linked to global crude oil prices and are exposed to global trends. That warning from ICRA is fitting given that one of the reasons the GST has been adjusted is widely interpreted to have been in response to the 50% tariffs that the US imposed upon India at the end of August 2025. The lower GST rates are expected to boost consumption but there are worries that this will come at the expense of reduced tax income and subsequent government spending.

For those unfamiliar with India’s tax system, the GST was introduced in 2017 as a way of simplifying some of the country’s central and state taxes. Broadly, it has been viewed as a success. It should also be noted that the current changes to GST mostly further simplify the tax from four bands to two. Yet, similar to Value Added Tax (VAT) in other countries, consumption taxes can create odd situations through their complexity. Typically this ends up with arguments over the classifications of goods and services for tax purposes. For example, in the UK the company that manufactures Jaffa Cakes infamously challenged the revenue authorities in the 1990s over whether their product should be classified as a biscuit or a cake for tax purposes! As the tax lawyer Dan Neidle joked, “any sufficiently detailed VAT rule is indistinguishable from satire.”

A cut to the price of cement in the world’s second biggest cement market is big news. It may be temporary if the analysts like ICRA are correct and prices carry on mounting. Cement producers - and other businesses along the supply chain - may also decide to withhold the tax cut either now or later on. Meanwhile, factors outside of India such as global fuel prices may exert themselves. For the time being though it’s a good news story.