Cement Firms to Invest Rs. 130 bn in Green Energy by FY28
Cement

Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.

India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years. The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years. The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency. Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points. Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Vaishnaw Inaugurates Two Rail Sections in Madhya Pradesh

Railway Minister Ashwini Vaishnaw on October 24 inaugurated the Satna-Devendranagar and Rewa-Churhat rail sections under the Lalitpur-Singrauli Railway Project in Madhya Pradesh. He also flagged off the new Devendranagar-Churhat passenger train service through video conferencing. Chief Minister Dr Mohan Yadav attended the event. The new Rewa-Churhat railway line, which extends approximately 65 km, was built at a cost of over Rs. 10 bn. The 53 km Satna-Devendranagar line was constructed at a cost of over Rs. 8 bn. The passenger service is expected to provide improved rail access to residents in..

Next Story
Infrastructure Transport

Railways Minister to Inaugurate New Rail Sections Covering 118 km

Railways Minister Ashwini Vaishnaw will inaugurate the Satna-Devendra Nagar and Rewa-Churhat rail sections in Madhya Pradesh on October 24. The two sections have a combined length of 118 km and are intended to improve passenger and freight connectivity across the region. Vaishnaw will also flag off a new train service between Devendra Nagar and Churhat. Madhya Pradesh Chief Minister Mohan Yadav will attend the inauguration programme, according to information released by the Ministry of Railways. The 53-km Satna-Devendra Nagar section is expected to improve rail access to Satna, Nagod, Devendra..

Next Story
Infrastructure Transport

ARSS SCPL JV Secures Rs. 2.4 bn Railway Doubling Contract

ARSS Infrastructure Projects said its joint venture, ARSS SCPL JV, has secured an engineering, procurement and construction (EPC) contract valued at Rs. 2.4 bn from East Central Railway. The project involves railway doubling works in Jharkhand and forms part of the Koderma–Arigada railway doubling initiative. The contract covers a 29.5-km railway stretch between Kathuatia and Hazaribagh Town stations in the Dhanbad Division. The work is intended to add a second railway line along the identified section and includes the construction and installation activities required for the upgraded corrid..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code