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Successful use of alternate fuels in cement  COVID-19 Impact
        production - an emerging prospect
                                                              The Cement production in the country is slated to

        The Indian cement industry is now globally competitive   fall by 25-30 per cent this fiscal as COVID pandemic
        with the lowest energy consumption and CO             has sucked demand from end-user industries. This is
                                                 2
        emissions. Apart from fulfilling domestic cement      the steepest fall for the industry in any year. Also, the
        requirements, the industry also exports cement and    Capacity utilisation in FY21 is seen at 40-45 per cent.
        clinker to around 30 countries worldwide.
                                                              Cement production is mostly in-line with the
                                                              infrastructure (housing, retail etc.) demand which is
                                                              also poised to fall sharply due to the lockdown related
         COMPANY/         STRATEGY         BENEFITS           restrictions.
         PLANT
                                                              Growth in the housing segment that forms 60%-65%
                                                              of cement demand is likely to be affected given the
                                                              impact of the slowdown in economic development
                          Use bioenergy
         Madaras          through burning  Annual cost        on discretionary spending over the next year. A
         Cement’s         of coffee husks   savings of US     public health emergency of such a severe magnitude
         Alathiyur plant  and cashew nuts  $1.7 million       and the resultant downturn in the economy will
                          shells                              put government finances under stress, limiting its
                                                              ability to step-up capital expenditure thus impacting
                                                              infrastructure growth, which forms nearly one-fourth of
                                                              the total demand.
                          Use Low Sulphur
         India Cements    heavy Stock      Annual savings     The COVID pandemic and the nationwide lockdown
         Ltd.’s Dalavoi   (LSHS) sludge as   of US $6,500     have come when construction activities are peaked
         plant                             approx
                          alternate fuel                      and followed by the monsoon season. Again, the
                                                              construction activity will be impacted, thereby affecting
                                                              the cement industry’s fundamental demand-supply
                                                              dynamics.
                                           Reduction of
         Ultra Tech’s     Use tyre chips &   about 30,000
         Gujarat Cement   rubber dust as   tonnes of carbon
         Works            alternate fuel   emissions
                                           annually                  Authors


                                                                     Manoj Kumar - Sr. Vice President
                          Substitue 10 per  Higher energy
         Lafarge’s        cent of coal used  savings and             Vaibhav Verma - Assistant Manager
         Arasmeta plant   in kins with rice   lower carbon           Tata Consulting Engineers Limited (TCE)
                          husk             emissions








                       CHALLENGES                                       WAY FORWARD


           Weak demand in         Lack of funding and       Target OPEX services     Building relations
           housing &              halting/temporary                                  and presence
           infrastructure         stoppage of various       Major mergers and        amongst
           segment                projects                  acquisitions ahead       cement players







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